Bloomberg News

‘Skyfall’ Reaps Record $88 Million After Global Bond Push

November 12, 2012

In the new James Bond film “Skyfall,” the British secret agent starts out in Istanbul, travels to London and flies to Shanghai and Macau before returning to his ancestral home in Scotland.

Agent 007’s journey could also have been the movie’s release schedule.

With international ticket sales a big chunk of Hollywood’s revenue, more films now play overseas first to take advantage of peak demand while building buzz in the U.S. “Skyfall,” the 23rd Bond, grossed $346.8 million in more than 80 countries before opening in the U.S. and Canada on Nov. 9. The movie pulled in $88.4 million in its domestic debut for Sony Corp. (6758) and Metro-Goldwyn-Mayer Inc., the most ever for the franchise.

“We’ve seen this become more and more routine,” said Jeff Bock, box-office analyst at Exhibitor Relations Co. “High- profile Hollywood blockbusters opening overseas first as the U.S. becomes just another territory.”

Historically, consumers outside the U.S. waited months to see current releases, according to Robert Marich, author of the book “Marketing to Moviegoers.” Today, opening pictures widely overseas reduces the temptation for consumers to seek pirated versions, and takes advantage of studio marketing campaigns that travel worldwide via the Internet, he said.

International ticket sales -- defined by Hollywood as sales outside the U.S. and Canada -- rose 7 percent last year to $22.4 billion, according to the Washington-based trade group the Motion Picture Association of America. Domestic sales fell 4 percent to $10.2 billion.

U.S. Boost

One reason the overseas box office has become more important is that many markets have modern theaters that offer a bigger percentage of box office sales, Rob Rader, an entertainment attorney at Schwarcz Rimberg Boyd & Rader LLP in Los Angeles, said in an interview.

Releasing “Skyfall” overseas first may have boosted the U.S. box office this weekend by $15 million, Rader said, citing increased awareness of the movie.

“They played to their strength internationally and picked a weekend with no other wide releases to compete with,” Rader said.

“Skyfall” beat the $76 million estimate of BoxOfficeGuru.com. The previous top-grossing Bond opener was “Quantum of Solace” in 2008 with $67.5 million,

European Time

The late-October international release of Bond was planned to take advantage of midterm school breaks in the U.K. and other holidays in western Europe, when people are more likely to go to the movies, according to Rory Bruer, president of worldwide marketing for Sony Pictures Entertainment.

“It really is about picking the best date,” Bruer said in a telephone interview.

This past weekend, the third for “Skyfall” in many markets outside the U.S., brings the worldwide box office total for the picture to $518.6 million, according to Sony.

While some pictures such as Bond have built-in international appeal, others can’t pursue the same strategy because they are more relevant to U.S. audiences, according to Peter Sealey, a former marketing executive at Columbia Pictures.

“This would not work on a film such as ‘Lincoln,’” Sealey said in an e-mail.

Steven Spielberg ’s “Lincoln,” from the director’s DreamWorks Studios and distributor Walt Disney Co. (DIS:US), opened in limited release and expands nationally next week.

Bond is the fifth-largest movie franchise of all time. Its 23 previous films, dating back to 1963’s “Dr. No.,” have averaged $204.7 million in U.S. and Canadian ticket sales when adjusted for inflation, according to Box Office Mojo.

Craig, Bardem

“Skyfall” is the 23rd Bond picture from Eon Productions, which holds the rights to Ian Fleming’s novels. Some researchers, including Box Office Mojo, count 24 to include “Never Say Never Again,” released by Warner Bros. in 1983 and starring Sean Connery.

In “Skyfall,” Daniel Craig plays Bond for the third time. The agent is assumed dead after being shot accidentally by an MI6 colleague. After a surprise return, he battles a new villain, played by Javier Bardem, who battles with agency chief M, portrayed by Judi Dench, and has stolen a list of Western intelligence agents.

The movie, which cost $200 million to produce, according to estimates from researcher Box Office Mojo, has earned critical acclaim, including a 93 percent positive ranking from reviewers as of Nov. 9, according to Rottentomatoes.com.

Worldwide, the highest-grossing Bond was 2006’s “Casino Royale.” The first one starring Craig, it generated $594.2 million in global ticket sales.

No Guarantee

Other films enjoying overseas success include Walt Disney Co.’s “Marvel’s The Avengers.” The picture grossed $218 million and set records in 12 countries before its May 4 release in the U.S.

Releasing a film first internationally is no guarantee of success. “Battleship,” a Universal Pictures action film released this year, grossed a disappointing $65 million in the U.S. when compared with the $237 million it brought from overseas, according to Keith Simanton, managing editor of researcher Imdb.com.

“The bad word-of-mouth and scathing reviews from critics wafting early from across the Atlantic helped torpedo its domestic debut here,” Simanton said.

The amounts below are based on actual ticket sales from Nov. 9 through yesterday.

                       Rev.            Avg./   Pct.   Total
Movie                 (mln)  Theaters  Theater Chg.   (mln)  Wks
===============================================================
 1 SKYFALL            $88.4   3,505   $25,211   --    $90.6    1
 2 WRECK-IT RALPH      33.0   3,752     8,799  -33     93.6    2
 3 FLIGHT              14.8   2,047     7,223  -41     47.5    2
 4 ARGO                 6.6   2,763     2,395  -35     85.6    5
 5 TAKEN 2              4.0   2,487     1,614  -32    131.3    6
 6 CLOUD ATLAS          2.7   2,023     1,314  -51     22.8    3
 7 MAN WITH IRON FISTS  2.6   1,872     1,385  -67     12.8    2
 8 PITCH PERFECT        2.6   1,391     1,850  -16     59.1    7
 9 HERE COMES THE BOOM  2.5   2,044     1,234  -28     39.0    5
10 HOTEL TRANSYLVANIA   2.4   2,566       935  -46    141.0    7
11 PARANORMAL ACTIVITY  2.0   2,348       843  -53     52.6    4
12 SINISTER             1.5   1,554       981  -44     46.6    5


Top 12 Films Grosses

   This Week     Year Ago      Pct.
     (mln)         (mln)       Chg.
===================================
    $163.0        $126.2       +29


Year-to-date Revenue

     2012          2011
      YTD           YTD        Pct.
     (mln)         (mln)       Chg.
===================================
    $9,097        $8,718      +4.3

Year-to-date Attendance:      3.2%

To contact the reporters on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net; Andy Fixmer in Los Angeles at afixmer@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


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Companies Mentioned

  • DIS
    (Walt Disney Co/The)
    • $90.34 USD
    • 0.01
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