The cost of Disney’s gamble on streaming has been laid bare following the total costs of some of their most recent Marvel Studios productions becoming known. According to movie econonics expertCaroline Reidof Forbes,Disney has lost over $11 billion via costs associated with streaming since the launch of Disney+, and a key aspect of this has been directly attributed to Marvel series. As Disney chiefBob Igerrecently told CNBC, the losses are unsustainable and that there would need to be a cull on spending.
“We ended up losing a lot of money on that, more so than we expected initially. Part of that was because we were chasing sub growth and not as focused as we needed to be on the bottom line. I came back and the losses were around $4 billion a year. It was clear that that was not sustainable and not acceptable and the goal was first let’s reduce those losses.”
How Much Did Disney Spend on Marvel Shows?
The first series to have the costs revealed wasMoon Knight. The six-episode series, which premiered on Disney+ in March of 2022, featuredOscar Isaacin the leading role. He portrayed a mystical superhero, endowed with abilities by the Egyptian moon deity, Khonshu. That series, which was run by EgyptianMohamed Diab, the first Arab director to lead a Marvel project, actually came in under budget at $147.9 million. The series was very well received, and earned a critics rating of 86% on Rotten Tomatoes, as well as eight Emmy nominations, winning one.
The same can’t be said ofSecret Invasion, the panned series that debuted last summer.The total costs of the series ballooned to $211.6 million,and that didn’t equate to critical acclaim or audience interest as it debuted to the second-lowest viewing figures of any Marvel streaming series. Financial statements for the series, which was based in the United Kingdom, reveal that it cost double the production cost of the first season ofThe Witcher, 20% more than its second season and 20% more than the cost of 2011’sCaptain America: The First Avenger.
However, the $141.3 million spent of the second season ofLokiwas well worth the expenditure. The series was shot at the iconic Pinewood Studios, located just outside of London, and at various locations throughout the UK’s capital. Streaming services typically keep their show budgets under wraps, incorporating them into their general expenditures without detailing the spending on individual projects.
However, productions in the UK stand out as an exception. Thanks to the government’s Television Tax Relief scheme, studios can receive a cash rebate of up to 25% for costs incurred within the country, and as such, their budgets must be disclosed. The final season ofLokiwas met with universal acclaim, and garnered 3.39 billion minutes of viewing.
All three series are available now to watch on Disney+.
Loki, the God of Mischief, steps out of his brother’s shadow to embark on an adventure that takes place after the events of “Avengers: Endgame.”
