Only one movie is profitable for Hollywood in 2023: the end of big production?
Unexpectedly for the film industry, only one of the 13 films released in 2023 with budgets over $200 million was profitable. This surprising fact comes in the same year that Disney set the pace with the animated film Wish and Sony set the pace for an industry that seemed to be reeling under the weight of its own investments.
Hollywood’s expensive dilemma
This year’s biggest blockbusters, which include everything from the long-awaited sequel to Aquaman to the new Marvel universe, Guardians of the Galaxy, Vol. 3, seem to have suffered a common fate: the struggle for profitability. Surprisingly, only the latter managed to cross the winning line. With astronomical budgets and the market still recovering from the effects of Covid, the big question is: Has the limit of what is sustainable been crossed?
Box office receipts, while above average, seem insufficient to offset production and marketing costs, which frequently exceed $100 million. Films like The Little Mermaid and Mission: Impossible – Dead reckoning, part one, while drawing huge crowds, are at a financial crossroads. This raises a critical reflection on the viability of such mega-productions in cinema in the future.
The surprise of Guardians of the Galaxy No. 3
Out of a sea of multi-millionaires, Guardians of the Galaxy Vol 3 stands out as a blockbuster. Not only was this film profitable, but it also proved the public’s love for its charismatic characters and its blend of action and humor. This success highlights the importance of maintaining an emotional connection with the audience, which seems to have been depleted in other blockbusters of the year.
Compared to its predecessors, this installment manages to balance visual splendor with an engaging story and well-developed characters. While other franchises have opted for sequels and remakes, Guardians of the Galaxy Vol.3 shows that creativity and fidelity to the essence of the characters can be the key to survival in an increasingly crowded and competitive market. This film represents not only a financial triumph, but also an important lesson in the balance between spectacle and narrative substance.
Disney, with seven of the fourteen titles listed, seems to be leading this budget race. However, even with established franchises like Marvel and DC Comics, success is not guaranteed. The Marvels and Ant-Man and the Wasp: Quantamania, for example, shows how even the giants fail. Is it time to re-evaluate investment strategies in the industry?
The influence of exhibitions and the change of attitude
For exhibitors, these results represent both a challenge and an opportunity. Despite the problems, these films have a large share of the projected box office of the year. However, the question remains: is this model sustainable in the long run?
Meanwhile, films like Elemental and The Assassins of the Moon offer alternative strategies where presence on streaming platforms can play a vital role in adding value to subscribers. This could mean a change in the way studios and platforms conceive and monetize their products.
The future of mass production
The situation poses a critical dilemma for Hollywood: Continue betting on big budgets that increase risks, or explore new ways to balance creativity with profitability? This year’s Aquaman and the Lost Kingdom may be the last big challenge to the current model.
Cinema is at a crossroads, and 2023 may be remembered as the year everything changed. The industry, creators and audiences alike, find themselves in a new reality where bigness is no longer measured in millions of dollars, but in a constantly evolving world of connecting with audiences and creating lasting impact.