Disney is expected to incur a staggering loss of $132.7 million from its latest film, TRON: Ares, following revelations about its production budget and box-office performance. According to a report by Deadline, the film’s final net production budget reached $220 million, significantly higher than the previously estimated $170-180 million, even after accounting for Canadian tax credits.
As of Sunday, October 15, 2023, TRON: Ares has grossed $103 million worldwide after its second weekend in theaters. Domestically, the film experienced a sharp decline, with a 67% drop in ticket sales from the previous weekend. Projections indicate that the film’s total worldwide gross may settle around $160 million.
Financial Breakdown of “TRON: Ares”
The financial outlook for TRON: Ares does not appear favorable. The film’s projected revenue is estimated to total $214.8 million. This figure includes $72.2 million from the studio’s share of the theatrical run, $37.6 million from home entertainment, $100 million in global television rights, and an additional $5 million from airline deals.
In contrast, the costs associated with the film have escalated. The $220 million production budget is compounded by $102.5 million in global marketing and promotional expenses, $10.8 million in other costs, and $14.2 million in residuals. This brings the total expenditure for TRON: Ares to a staggering $347.5 million.
The projected loss of $132.7 million is calculated by subtracting the anticipated revenue from the total costs. Given these figures, it is becoming increasingly likely that Disney may put the TRON franchise on hold for future big-screen releases.
The disappointing financial performance of TRON: Ares raises questions about the viability of large-budget franchises in an evolving entertainment landscape. Disney’s strategy moving forward remains to be seen, but it is clear that significant financial losses will impact their future project decisions.
