Disney and Marvel Studios- The Numbers
Shang-Chi and the Legend of the Ten Rings made its debut on Labor Day weekend. It’s the first Marvel movie to open on the holiday weekend, and the Chinese government has yet to approve the movie for distribution. However, Disney had enough wiggle room with its power over the comic book publisher that both Stan Lee and Jack Kirby established 80 years ago. Disney purchased Marvel in 2009 for $4 billion, and now it is estimated to be worth almost $53 billion, which is about 16% of Disney’s market value. With that being said, the return on investment is certainly remarkable, given that many thought the purchase would never pay off.
“People didn’t fully understand and appreciate the franchise potential of the genre like we did,” said Disney’s former chief financial officer, Tom Staggs, who assisted in leading the acquisition. “We were able to buy it because the industry didn’t totally get it either.”
Maintaining that same value may be a big challenge for Chapek, as he took on the role as Disney’s CEO last year. This is especially true as he has taken on the already contentious decision of Scarlet Johansson, one of Marvel’s biggest movie stars, given that her big pay out is linked to the concurrent streaming and theatrical release of Black Widow, as well as the controversial choice of disclosing her $20 million salary for her role in the film. Beyond the decision already being controversial for Hollywood, it also concerned Marvel’s Chief Creative Officer, Kevin Feige, who hoped that the movie would not be downgraded to at-home streaming.
But even before such difficulties that Shang-Chi was facing prior to its debut, it presented many other unique challenges for filmmakers–breaking down controversial Asian stereotypes that may be the reason why the Chinese government has yet to set out a release date. Disney was depending on the performance of Shang-Chi, which would influence how they would distribute the newest Marvel movie, Eternals, set out to be released Nov. 5. This will impact whether the company will stick to its meticulously scheduled distributions of Marvel movies that are intended for theatrical release initially, then extended to TV.
The 24 Marvel titles cumulatively grossed $21.9 billion for Disney, making it bigger than ever–even larger than Bond, Harry Potter, and The Fast and the Furious.
Additionally, the Marvel titles are even bigger than Star Wars, which was bought by Disney for $4 billion from Lucasfilm back in 2012, and delivered box office sales of $6 billion from the films that were released. Disney’s acquisition of Pixar in 2006 for $7.4 billion also pales in comparison, given that ticket sales were $14.4 billion for 21 films. It is no secret that Marvel is certainly the most successful film franchise.
Take a look at the numbers that Marvel has brought in:
Films: Almost $6 billion
Top Marvel Film: Avengers: Endgame at $2.8 billion
To no surprise, Marvel’s superheroes have helped Disney dominate the box office in recent times, resulting in the studio to have the two largest movies in 2018, Black Panther and Avengers: Infinity War. Beyond those two huge breakthroughs, the next year had one of the highest-grossing films of all time, Avengers: Endgame. Since 2018 and on, Disney has distributed seven Marvel films that have brought in over $9.4 billion. Because of this, it has increased the value of all other films, resulting in a price increase for cable networks and streaming services to show them.
Streaming: Over $40 billion
Most Popular Marvel Show: Loki
Marvel shows boosted around 12.4 million in subscribers for Disney+ streaming services in just a few months (April-June), and brought a total of 116 million viewers as of July. From WandaVision, to The Falcon and the Winter Soldier, to Loki, these shows have made it possible for unbelievable profits to be brought in. And because of the dominance it has shown for streaming, 10 more Marvel shows will debut on Disney+ streaming service.
Consumer Goods: Approximately $3 billion
Top Selling Marvel Product: LEGO Iron Man Hall of Armor
All Marvel sales (under Disney) account for almost $10 billion in revenue for licensing from sales since 2010. Initially, toys were viewed as the main driver in profit and films helped with the marketing. And now, both are raking in a massive amount of revenue. Although Disney does not specify the percentage that is attributable to Marvel, the second profit driver is said to be from Disney’s classic characters, including Mickey Mouse, Minnie Mouse, Donald Duck, and Goofy.
Theme Parks: Undetermined
First Marvel Attraction: The Iron Man Experience at Hong Kong Disneyland
Although Marvel has been in Disney’s hands for over a decade, it is still too soon to determine the operations’ value regarding theme park attractions. For example, a six-acre Avengers Campus that was introduced in June at Disneyland is already drawing in streams of fans ready to see the different characters, including Captain Marvel, Thor, Iron Man, Black Panther, and more. In addition, theme park goers can experience the Spider-Man Web Slingers ride, among many other thrilling attractions.
It goes without saying that the union between the two conglomerates, Disney and Marvel, has truly revolutionized the industry, from film, to streaming, to consumer products, to theme parks, and beyond–and will continue to do so bringing in massive revenue.
About Vedette Finance
Tarek Anthony Jabre launched Vedette Finance, a Los Angeles-based film development and finance company, in 2012. As the CEO and Founder of Vedette Finance, Tarek Anthony Jabre’s goal is to maintain a consistent delivery of high end product, quality, and financial return in the entertainment industry. Vedette Finance’s aim is to creatively develop its premium value slate and provide structure to financing in order to produce a diverse range of film projects. To learn more about Vedette Finance, visit www.VedetteFinance.com.