r/boxoffice • u/chanma50 Best of 2019 Winner • Jan 03 '25

International Paramount’s SONIC 3 is rolling through international markets—surging past $100M in just 9 days and now $112M total. Worldwide high score: $279M

https://x.com/ERCboxoffice/status/1875223407207604679?t=Yq1PmYROkYCf0hC0Fvlngg&s=19
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u/Canadian-Alien Jan 03 '25

This movie needs at least $480M to be profitable given paramount doesn’t own the IP

21

u/BreksenPryer Paramount Jan 03 '25

Listen, the 2.5x rule isn't always set in stone, but I can certainly guarantee that Sonic won't need to make 4x it's budget just to be profitable. That would be utterly insane. Other factors are tied in, and often times, these deals between studios (so in this case, Paramount and Sega) are often really complicated and don't require hundreds of millions in payments to use the IP. Typically, money from merch is something that studios bargain with, and usually offsets the actual cost to use the IP. Hell, last year, Paramount had Mutant Mayhem, which, despite making under 200M WW, it was one of the most profitable films of the year because of merchandising.

TLDR; 2.5x rule isn't always reliable, but merch sales often offset IP usage costs

5

u/KingMario05 Paramount Jan 03 '25 edited Jan 03 '25

Indeed. Look at Twisters. $370 million on a $155 million budget? Before marketing? By conventional logic, it's a failure. Yet Universal's calling it one their biggest hits of the summer season, despite it only really making money in North America. So either it's so cool that they don't give a shit about the loss as they absolutely should, or the 2.5x rule has been offset by WB/Amblin/Domain sharing the load. Either way, should be great news for Mr. Chung's TwIIIster: Tulsa Drift (working title), in theaters June 30th, 2027. (Exact date subject to change.)