'The Interview' Box Office: James Franco, Seth Rogen Movie Makes $15 Million on VOD; How Will This Affect the Future of Film?
After a number of threats and discussions on how "The Interview" would be released, Sony decided to unveil it on VOD and made $15 million.
According to the Hollywood Reporter, the film was rented 2 million times and became the highest online release ever for Sony. The film was available on Google Play, YouTube and Xbox one day before hitting theaters. It is now available on iTunes, which is the largest online platform.
"The Interview" also hit 331 theaters, but failed to generate as much money. While its opening night shows were sold out, it was only able to generate $2.8 million in its first five days. The reason was that most large theater chains such as AMC and Regal backed out after terrorist threaten to attack theaters who were showing the controversial film.
While the opening theatrical gross is not bad for a limited release, the total demonstrated that audiences preferred to stay home and watch it.
"The Interview" is now the highest grossing Day and Date release of all time and it could be a game-changer in the way audiences see movies in the future.
The Day and Date release is not new to the industry, as many Independent companies release their films in that way in order to generate audiences. Some companies that have been successful with this method include Roadside Attractions, IFC Films, Magnolia and, most recently, Radius TWC.
This past summer, Radius scored one of the biggest VOD successes with "Snowpiercer." The film was released on demand and in theaters and made close to $7 million on VOD. However, unlike "The Interview," "Snowpiercer" did not have the same print and advertising and the same amount of buzz.
With "The Interview" having gross $15 million, studios may rethink the way they release films. VOD releases are cheaper than theatrical because studios do not have to pay for so many DCPs of the films and they do not have to spend as much on posters. Instead, a lot of their advertising can go towards online marketing. The studios would also generate more profit from VOD, especially since theater chains usually take 50 percent of opening weekend gross. VOD services historically charge less.
In total, "The Interview" has already made $18 million in just one week together with VOD and theaters. Within the next few weeks, if buzz continues, the film could eventually make the $40 million the studios paid to make the film.
If "The Interview" is profitable in the long run, then studios could use this release strategy for mid-sized films, especially since this past summer was quite terrible. Studios could potentially put their marketing efforts toward the bigger blockbusters, hoping to have better results.
However, if studios due decide to continue this strategy, it could potentially mean less exposure to Indie films as this is where the majority of the Indie films generate the money. With studios backing larger VOD releases, the middle sized Indie film would be sunk in the crowded VOD platform. Additionally, theater chains would be forced to either lower prices or could eventually go out of business, if not as many films are released. These are a couple of consequences that could harm multiple businesses.
However, this is based on one week. "The Interview" has received exceedingly bad word-of-mouth and many audiences have been disappointed by the movie's overall quality. This could end up being harmful for the film's future box office prospects.
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