A.K. Madhavan, Chief Executive of Crest Animation, explains funding for Alpha and Omega:
... [W]e had a distributor with a studio called Lionsgate where we did a three-picture deal. They have put in half of the money in the production, which is unheard of in the Indian production space. We also have a large technology fund called DE Shaw, which is a $30 billion fund who have also put in money ...
Let me give you a guideline in terms of how the animation genre performs in the industry. Animation as a movie feature revenues not only at the box office, it is also at the merchandise toys. ... [I]f box office is $100 million, I am just giving you a number, then almost 1:1 comes from merchandise toys, licensing DVDs and so on and so forth. So typically 40% of the revenues are box office and 60% comes in from other streams ...
It's doubtful that A O will hit the century mark domestically, but the feature will probably climb to $20-$35 million. I don't know what the production and marketing budgets are, but the movie should have enough of a theatrical platform to help the DVD rollout. Then, of course, there are the plush toys and the tie-ins and the rest of the world market.
The picture should make Crest a bit of money.
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Then, of course, there are the plush toys and the tie-ins
Unfortunately, there isn't any Alpha and Omega merchandise currently on the market, outside of a Nintendo DS game and a couple juvenile book tie-ins.
Lionsgate was seeking merchandising partners, but apparently didn't get many takers:
http://www.licensingexpo.com/index.php/toys-apparel-sought-for-lionsgates-alpha-and-omega/
BLAH BLAH BLAH. This idiot doesn't realize that as important as marketing is, it's the MOVIE that matters first. Not once in this article does he discuss the story or talent creating it. How lame--this guy is doomed to failure with Crest.
^Well, he could always apply at Disney. He fits the corporate profile to make a great CEO.
(yes, that was sarcasm)
...but oh so true...
"almost 1:1 comes from merchandise toys, licensing DVDs and so on and so forth. So typically 40% of the revenues are box office and 60% comes in from other streams"
This may be true...but only if the film has enough of an audience connection to make people want to buy the merchandise. A $9 million opening weekend for an animated film is firmly in flop territory, so I doubt many families are going to be flocking to the mall to buy wolf stuff. They better hope the DVD sells well.
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