“Superman” Reportedly Triples “Man of Steel” Profitability, Despite Similar Box Office Gross
Warner Bros.’ new “superman” film appears to be a significantly more profitable venture for the studio than 2013’s “Man of Steel,” reportedly generating $125 million in profit compared to the earlier film’s $42.7 million, according to Variety. This comes despite “Superman” grossing $614 million worldwide-slightly less than “Man of Steel’s” $668 million.
The discrepancy in profitability stems from differing production and marketing costs, and complex accounting practices within the studio system. While “Man of Steel” had a reported production budget of $225 million,its final spend reached closer to $258 million,plus an additional $58 million in payouts to producers,stars,and other contributors. This brought the total cost to approximately $316 million. “Superman’s” production budget was $115 million, but marketing costs-which can sometimes equal half the production budget-could push the total spend to around $325 million.
Industry observers note that studios often employ accounting maneuvers to minimize reported profits, perhaps including internal charges for marketing and distribution. This practice impacts residual payments and has led to questions about the true profitability of blockbuster films like the 1989 “Batman,” which, despite massive box office returns, may never have turned a profit due to jack Nicholson’s lucrative back-end deal.
Warner Bros. has a vested interest in portraying “Superman” as a success as it launches James Gunn’s new DC Universe, and profit figures should therefore be viewed with caution. Though, initial data suggests Gunn’s DCU is off to a strong financial start.
