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The Lion King Budget Dilemma
Posted: Tue Sep 23, 2003 9:25 pm
by Prince Eric
I read in an earlier post that marketing for The Lion King DVD amounted to 200 million dollars.

In another, Luke said that he expected it to sell 7 million units, a little over Snow White and the Seven Dwarfs and Beauty and the Beast. However, if Disney pocketed at least 20 dollars a pop, that would only amount to 140 million dollars. That doesn't even include the myriads of give-away DVDs through exclusive chains. Also, at retail and discount stores, the price will be much cheaper. According to my math, The Lion King would have to sell at least 11 million copies before they started seeing a profit. I am aware that 200 million dollars cover The Lion King 1 1/2 and The Lion King 2 Special Edition. However, it seems Disney would be raking in the big bucks this time. Or am I missing something.
Posted: Tue Sep 23, 2003 9:57 pm
by Luke
7 million DVD units, at least. I'd imagine at least 4 million VHS units. In any event, I'm starting to see some of this marketing budget, with the ads on bus stop / phone booth sides in the city. But I don't think Disney pockets anything close to $20 a pop. First of all, $20 will probably be the high price release week. And how much of that is profit for the store? I think it could be as low as a single-digit profit per copy for Disney, maybe, depending on how low the low prices are.
And the 7 million unit was only through the end of the year. I'm sure Disney will make back their marketing money somehow.
Posted: Tue Sep 23, 2003 10:06 pm
by Matt
I am sure Disney will make money with Sleeping Beauty! After all it was the most requested DVD!

Posted: Tue Sep 23, 2003 10:25 pm
by Starion
Matt wrote:I am sure Disney will make money with Sleeping Beauty! After all it was the most requested DVD!

Animated-Movies.com says that The Lion King was the most requested DVD. I'm confused.
2099net found this article from Animated-Movies.net
http://www.ultimatedisney.com/forum/viewtopic.php?t=718
Posted: Tue Sep 23, 2003 11:02 pm
by Jack
I find it hard to believe that 200 million is for the marketing of this DVD alone. Thats absurd - do you realize thats 5 times what most blockbuster movies use for marketing? I bet it includes marketing for the sequels.
Posted: Tue Sep 23, 2003 11:13 pm
by Choco Bear
theyve started showing commercails i think they started today not to sure tho

it was on the WB , same channel the brother bear commercial was on yesterday

Posted: Wed Sep 24, 2003 12:56 am
by Paka
Nope - that $200 mil is covering both the original TLK and the releases of its 2 sequels - Hakuna Matata and Simba's Pride - in their special edition dvds on February 10th and August 31st, respectively.
That make more sense to me. $200 mil for three releases is still a bit too much, but at least not as bad as it would be with TLK alone. O_o