Disney stung by John Carter loss plots Avengers blitz

Written by Bloomberg | Updated: Apr 13 2012, 08:20am hrs
Walt Disney, after losing $200 million on the sci-fi film John Carter, is mounting a superhero-style marketing campaign to ensure its next big-budget movie, Marvels The Avengers, is a blockbuster.

The companys interactive unit designed an online game, the parks division covered a Florida monorail in ads and the Disney XD cable network is running an Avengers cartoon, all to help boost awareness of the film, which opens May 4 to kick off Hollywoods summer box-office season.

Its quite a contrast to another recent Disney effort, said Jeff Gomez, founder of Starlight Runner Entertainment, an internet consultant that works with studios. There are a number of elements that are unprecedented.

A lot is riding on The Avengers, the first Marvel film Disney has marketed since buying the comic-book company for $4 billion in 2009. Under Rich Ross, the TV executive who became studio chairman in October of that year, Disney has cut its slate in half, betting on fewer films to boost profits. That plans risk was underscored by John Carter, which will drag the unit to a second-quarter loss of as much as $120 million.

The Avengers may generate domestic ticket sales of $155 million its opening weekend and $370 million in US and Canadian theaters, estimates Phil Contrino, editor of BoxOffice.com.

That would be more than five times the domestic tally of John Carter and a bigger opening than Lions Gate Entertainments The Hunger Games last month, the third-largest debut of all-time at $152.5 million, according to Box Office Mojo.

I dont think theres any need to worry about this one, Contrino said in an e-mail. Its a sure thing.

Disney, based in Burbank, California, rose 0.9% to $41.37 at the close in New York. The shares have advanced 10% this year.

The Avengers, about a team of superheroes battling to save Earth, stars Robert Downey Jr and Scarlett Johansson, reprising their roles as Iron Man and the Black Widow from 2010s Iron Man 2. That film posted $624 million in worldwide ticket sales for distributor Paramount Pictures on a budget of $200 million, according to IMDB.

Disney spent an estimated $220 million producing The Avengers, $30 million less than on John Carter, according to the Internet Movie Database, a research website.

The company is avoiding mistakes it made with John Carter, said Peter Sealey, a former Columbia Pictures executive who is now a consultant. He cited a Carter trailer that didnt excite viewers, a change in the studios top marketing officer two months before the release and the removal of the identifying words of Mars from the title.

It was a huge marketing failure, Sealey said, adding Disney will get the train back on the track.

Disney has been stoking interest in The Avengers since at least July 2010, when the stars and director Joss Whedon appeared at the annual Comic-Con International convention in San Diego. The film premieres on Thursday at the Disney-run El Capitan theatre in Los Angeles, before going into wide release.

The company gave away free screenings in 10 cities where the most Facebook users signalled they liked the film. More than 1 million did so, according to the site. The trailers have broken records for downloads on Apples iTunes.

Playdom, acquired by Disney in 2010 and part of the interactive unit, created its first social game for a Disney product. Introduced on Facebooks site last month, Marvel: Avengers Alliance has 640,000 daily users, according to researcher AppData.

Disney also lined up an estimated $100 million in Avengers-related marketing by partners including Hershey, hotelier Wyndham Worldwide and Honda Motors Acura, a record for Marvel, according to the trade publication Variety.

David Funk, senior vice-president of sales and marketing at Land OFrost, a Lansing, Illinois-based luncheon meat maker, began discussing sponsorship packages with Marvel a year ago. He declined to put a dollar figure on his companys effort, which include a sweepstakes for an Avengers-themed trip to New York, supermarket displays, trading card giveaways and a TV commercial with a superhero mom making a sandwich.

They told us this was going to be the biggest movie in their entire portfolio, Funk said.