Globalization and “The Golden Compass”

WHERE OH WHERE DID ALL MY PROFITS GO?  

OH WHERE OR WHERE CAN THEY BE?

A movie you probably all did not see this past year is “The Golden Compass”. It resembled the Narnia franchise, but possessed agnostic messages instead of an allegorical theme similar to the Narnia films. Many blamed its lack of success in the US because of its message, but then the movie was released internationally and all theories were thrown out because it emerged as a box office sensation overseas. What went wrong in the US? Was it the message or something else entirely? (Many claim that the issue was in the marketing, but there is no way to be certain).

In the past, international markets were not seen as the breadwinner, but simply a way to make a little more money on top of the US totals. With globalization and the expansion of quality movie theaters around the world, the international market now can yield over 2/3 of a film’s entire profits. Some studios however have yet to realize this and lose out on huge profit potential.

New Line should be celebrating the success of “The Golden Compass” but cannot do so because they only kept the US rights to the film and sold off the international rights in hopes of making up the substantial loss they took on the film. The budget was $180 million and it barely made $70 million in the United States, while internationally the film grossed over $300 million. With venerable markets outside the US, no longer can companies point blame outside their own firm. Simply put, other companies took “The Golden Compass”, marketed it well and made a lot of money in the process. Sadly, New Line did not and just last week was forced to merge with Warner Bros due to lack of sales.

"The Golden Compass" is nothing but a microcosm of the new age of cinema.  It clearly shows the secret of profitably when releasing a big-budget film in today's market -- international box office receipts.  With digital distribution on everyone's mind in the business (I hear it constantly mentioned at the Gersh Agency), companies can synchronize their release dates with a 'click of a button.'  With this ease of distribution, companies like New Line can stop outsourcing their international movie rights and focus their energy on effectively marketing their film.  Now, of course the main reason film rights are sold is due to a company's inability to market effectively in many culturally different territories.  It spreads a company's resources very thin when you have over 50 territories in which you are releasing your film.  But this excuse will not exist for much longer.

The world as we know it is shrinking.  Technologies are available that allow just about any information or content to be shared instantaneously from any points on Earth.  With these technologies gaining usage around the world, companies will be fully able to realize the potential of their film and garner all the profits for themselves.  "T.G.C." US flop could of been the result of a terrible marketing campaign, lack of interest from the American public or simply was bad timing (our market was slightly over saturated with fantasy epics ex. "Stardust", "Narnia", "Harry Potter", "The Last Mimzy").  One this is certain, "The Golden Compass" should be used as a case study for film distributors everywhere.   This domestic flop/international dynamo showcases that if you do not make your money in the US, it is not the end of the world.  

Stay Tuned for updates on the writer's strike, the future of product placement and how the world of independent films is paving the way for truly talented individuals to display their work to the world.