'A one-time thing': Analyst details Netflix's risky $200 million bet on 'The Gray Man'

2022-09-17 02:48:09 By : Ms. Waltly waltly

From NI to tax cuts – what the chancellor of the exchequer could announce at his first fiscal event

After beating its Q2 subscriber drop forecast on Tuesday, Netflix (NFLX) now has its eyes set on "The Gray Man."

The movie's $200 million budget makes it the most expensive Netflix film to date.

"Movies are a one-time thing — and some of these costs have gotten so large," Shawn Robbins, chief analyst at Box Office Pro, told Yahoo Finance.

He described the current streaming landscape as a "Wild West" with platforms scrambling for top-tier content in order to keep up with their competitors.

"Budgets have been getting bigger," Robbins added. "The talent is there. It's just a question of which service is going to streamline the ability to put out quality product consistently and maintain subscribers."

Netflix, which shed nearly 1 million subscribers in Q2 and revealed softer-than-expected guidance for Q3, has battled an uptick in subscriber churn — i.e., the number of customers that drop off the service.

That comes amid increased competition, with some industry watchers warning that a "streaming recession" is on the horizon. The original streaming giant plans to introduce an ad-supported tier next year to ease some of these woes.

Another monetization opportunity is theatrical partnerships, which is why some industry watchers are questioning why "The Gray Man" did not receive a wider theatrical rollout.

Theatrical "gives you a window where you can make a lot of money on top of your subscriptions — that could even pay your cost of some of these franchise tentpole titles," Jon Christian, EVP of digital media supply chain at Qvest, the largest media & entertainment-focused consulting company, previously told Yahoo Finance.

Christian also recommended that Netflix start to shift its focus to franchise businesses — a strategy that's easily transferrable to the big screen.

"With franchise comes fandom," he said, citing Amazon Prime Video's (AMZN) upcoming "The Lord of the Rings: The Rings of Power" series (which the streamer coughed up a reported $465 million to produce) as well as Disney+'s (DIS) powerful Marvel and Stars Wars franchises.

Although Netflix has played some original features in theaters, including 2018 breakout hit "Roma" and the more recent hits "The Irishman" and "Don't Look Up," those debuts (similar to "The Gray Man") had very short theatrical windows with much more limited releases.

"Those movies prove that the quality can be achieved, but they didn't have the same opportunity in theaters and could have done very well," Robbins said, anticipating that the integration of theatrical content with streaming will take time.

"The Gray Man" will battle the latest box office darling — Jordan Peele's "Nope" — this weekend, and both films are expected to make a splash, despite lackluster reviews for "The Gray Man."

The action flick starring Ryan Gosling, Chris Evans, and Ana De Armas has just a 50% critic rating on Rotten Tomatoes (although the audience score is much higher at 90%.) In contrast, "Nope" is sitting on an 81% rating, with some critics calling it a "sci-fi spectacular."

Universal Pictures (CMCSA) estimated that the film will draw in $45 million over the weekend. Box Office Pro is a bit more bullish with an estimate at approximately $50 million.

And while Netflix's film is an action-packed thriller, the fact that "Nope" is more science-fiction/horror could give the movie an upper hand.

"It's something that people are looking for in between all of the superhero movies and the 'Minions' movie — this is a big original movie that they don't know anything about, and they don't know what to expect," the analyst said. "That's exciting for moviegoers."

Alexandra is a Senior Entertainment and Food Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com

Click here for the latest trending stock tickers of the Yahoo Finance platform

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube

It came as the euro area’s annual inflation rate came in as expected at 9.1% in August, up from 8.9% in July. This is more than three times the rate in August 2021.

Some of the chancellor’s other proposals may represent a step back to the light-touch era that led to 2008-09 crash

How much will Threadneedle Street hike the key rate by at its next meeting?

A blanket discount on business energy bills is being considered by Kwasi Kwarteng ahead of next week's mini-Budget as he draws up options to prevent a wave of bankruptcies.

Global Dialysis Market Global Dialysis Market Dublin, Sept. 15, 2022 (GLOBE NEWSWIRE) -- The "Dialysis Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.The global dialysis market reached a value of US$ 104.13 Billion in 2021. Looking forward, the publisher expects the market to reach a value of US$ 142.92 Billion by 2027, exhibiting a CAGR of 5.42% during 2021-2027. Keeping in mind the uncertaintie

Major players in the environmental testing equipment market are Agilent Technologies Inc, Thermo Fisher Scientific Inc, Shimadzu Corporation, Waters Corporation, Bruker Corporation, PerkinElmer Inc, Merck KGaA, Teledyne Technologies Incorporated, INFICON, JEOL Ltd, SCIEX, Extech Instruments, Amphenol, and PathSensors, Inc.New York, Sept. 15, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Environmental Testing Equipment Global Market Report 2022" - https://www.repo

MELBOURNE/OSLO (Reuters) -ENGIE said on Friday it will go ahead with plans to build a green hydrogen plant in Western Australia to feed an ammonia facility owned by Norway's Yara International, as the French firm looks to expand rapidly in green hydrogen. The project will use energy from solar panels and a small battery energy storage system at Yara's site to power a 10 megawatt (MW) electrolyser and make 640 tonnes of hydrogen per year, the companies and the government said in separate statements. Construction on the A$87 million ($58 million) Yuri project is due to start in November with first production expected in 2024, ENGIE said.

Finland will seek compensation of up to 8 billion euros ($7.97 billion) if Germany nationalises gas importer Uniper, a Finnish cabinet minister said on Friday. Uniper, which is majority owned by Finnish utility Fortum, said on Wednesday the German government might take a controlling stake in the company as it sought further aid on top of a package agreed with Berlin in July. "It is absolutely clear that Finland will not allow Germany to nationalise Uniper without compensation," Minister of European Affairs and Ownership Steering, Tytti Tuppurainen, told the Finnish parliament.

U.S. Cordless Power Tools Market U.S. Cordless Power Tools Market Dublin, Sept. 15, 2022 (GLOBE NEWSWIRE) -- The "U.S. Cordless Power Tools Market - Industry Outlook and Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.Power tools are outpacing traditional hand tools in the professional and residential segments due to the demand for efficiency. For example, the construction industry experiences high pressure to launch innovative tools that reduce human effort. The s

PARIS (Reuters) -LVMH plans to turn off the lights at its stores earlier at night, starting in France in October, with plans to deploy the energy-saving measure in other parts of the world at a later stage, the luxury giant said on Thursday. The measure follows a call from French President Emmanuel Macron for industry, households and municipal authorities to reduce power consumption by 10% in response to Russia's cut to gas supplies and spiralling energy prices. Stores that keep the lights on at night have drawn criticism in France in recent weeks, amid calls for businesses to do more to fight climate change.

LIMA (Reuters) -Miner Glencore Plc said on Friday that a planned expansion at its Antapaccay copper mine in Peru is "under review," amid a blockade that has disrupted operations. Indigenous residents near the mine have been protesting this week that they should be consulted on the mine's expansion. The company said it will make an announcement when it reaches a decision on the expansion project which is known as Coroccohuayco.

CHEP 2021 Achievements In 2021 we collaborated with nearly 300 clients and saved 87.3 million kilometers and 112,419 tonnes of CO2 emissions. WEYBRIDGE, United Kingdom, Sept. 15, 2022 (GLOBE NEWSWIRE) -- CHEP has been transporting components throughout the global automotive supply chain since the 1960s, pioneering circularity before it became a buzzword. Clients can reduce their carbon footprint by offering a ‘share-and-reuse’ model that works with reusable, pooled plastic containers. Approved b

This study examines the US training market for commercial UAS, highlighting what is driving its revenue growth. The market is stable and growing with increasing commercial and public safety UAS and registered aircraft.New York, Sept. 16, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "US Commercial Unmanned Aerial System (UAS) Training Growth Opportunities" - https://www.reportlinker.com/p06318440/?utm_source=GNW Commercial applications for UAS have expanded in the

H&M reported on Thursday lower-than-expected quarterly sales as shoppers tighten their belts with energy and food bills soaring and the world's second-biggest fashion retailer struggles to compete with rival Zara. "The third quarter got off to a weak start, in common with the industry in many of the group's major markets," H&M, which does the bulk of its business in Europe, said in a statement. Shares in H&M, which have lost more than two-thirds of their value this year, were down 1.9% in early afternoon trade.

OSLO (Reuters) -Malaysian telecoms firm Axiata Group and Norway's Telenor ASA have been given clearance from the Securities Commission Malaysia for the proposed merger of their local units, Telenor said on Thursday. Facing stiff competition in the competitive Malaysian market, Axiata and Telenor announced last year the planned tie-up between Celcom Axiata and DiGi.Com, forming a new market leader called Celcom Digi. Two sources with knowledge of the deal, who spoke on the condition of anonymity, told Reuters last year that Celcom Digi would have an enterprise value of $15 billion.

Sawan, 48, currently oversees Shell's growth into low carbon energies, as well as its giant gas business. * A Canadian citizen of Lebanese origin, Sawan has been heading Shell's integrated gas, renewables and energy solutions division since November 2021. * Sawan begins as CEO on Jan. 1 and Shell Chair Andrew Mackenzie said of his appointment: "Wael Sawan is an exceptional leader, with all the qualities needed to drive Shell safely and profitably through its next phase of transition and growth."

Apple is preparing another major update for the iPhone, soon after its new iOS 16 download has arrived. This week, Apple introduced a significant new software update for its phones. The download brought a range of new features, including a redesigned Lock Screen and the option to delete sent messages.

Both volumes and values of customer spending dropped last month, new data show.

during the forecast period. The key elements anticipated to propel the adoption of geospatial analytics market technology throughout the forecast period is the increasing geographic deployment of IoT sensors.New York, Sept. 16, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Geospatial Analytics Market by Component, Solution, Service, Type, Technology, Deployment Mode, Organization Size, Application, Vertical and Region - Global Forecast to 2027" - https://www.repo

BERLIN (Reuters) -Lufthansa's plan to sell a stake in its aircraft maintenance business Lufthansa Technik has drawn more interest from financial investors than rival engineering firms, a source told Reuters on Thursday. Lufthansa was more likely to opt for a stake sale of around 20-30% than the alternative of launching an initial public offering, the source added. Separately, business daily Handelsblatt reported that Lufthansa is planning to start talks with private equity investors in December about the stake sale.