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November 9, 2009 - Avatar / $500 million dollar cost

Scooped on Monday, November 9, 2009

After all the bills have been paid will Avatar have cost $500 million dollars to produce and market? That's the number that The New York Times guesstimates in an article published today about the true cost of the blockbuster. The Times also got insiders to leak to them the costs associated with the film including who shares the biggest risk in Avatar not recouping its investment. Surprisingly, it's not News Corporation, the parent company of 20th Century Fox, that stands to lose the most.

The production budget for Avatar currently waivers at around $230 million dollars. Fox is getting more bang for its buck by getting tax rebates from New Zealand's film program for employing Weta Digital to create the movie's large amount of special effects. Worldwide marketing costs should come in at about $150 million dollars.

The Times reports, via insiders privy to the internal finances of the project, that 60 percent of Avatar's $230 million dollar budget is being paid for by two private equity firms, Dune Entertainment and Ingenious Media. Neither company chose to confirm the amount of captial that they have invested in Avatar.

There's also a condition in the contracts that if Avatar's budget should exceed $300 million dollars then James Cameron would defer his paycheck until the movie's investors received their share in income.

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