September 15 2013

Disney Exec States There Needs to be a Budget Cap on Films

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The Lone Ranger, despite being a financial disaster for Disney, may have been the wakeup call all of Hollywood needed when it comes to summer tentpole films.

Disney is expected to take a significant write-down on The Lone Ranger which flopped this summer, and it seems the studio learned a valuable lesson from this. Speaking at the Bank of America Merrill Lynch Media, Communications & Entertainment Conference, in Beverly Hills, Disney Co. chief financial officer Jay Rasulo said, “there needs to be a cap on (budgets of) tentpole franchise movies.” He went on to add, “Going forward, we will see a cap on spending on those movies.”

I have been saying for ages that these movies have been spinning out of control when it comes to their budgets, and thankfully it appears that at least one studio in Hollywood agrees.

Of course, it took John Carter and The Lone Ranger flopping for it to sink in, but at least it happened.

To be honest, I don’t see why any movie should cost more than $200 million to make, and even that price tag seems outrageous to me. Cut back on some of the silly effects, get the actor’s paychecks under control – do more backend gross deals where they get paid on performance – and for pete’s sake, get some decent scripts.

Anyone want to bet this is a large part of the reason Pirate of the Caribbean 5 (now rumored to be Pirates of the Caribbean: Dead Men Tell No Tales) was pushed back to 2016?

Source: Variety .

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