Avatar is one of the most expensive movies ever made, but will it earn for its investors?

• Avatar is a new film about a foreign planet and the humans who naturally want to invade it. Director James Cameron (Titanic and Terminator) has worked on the movie for 15 years.
• Although the film is being released through 20th Century Fox, the film company is carrying a small percentage, as little as 40%, of the production budget. Private equity groups pick up at least 60% of the budget.
• Because the marketing campaign and technology used in the film are so wide-scaled and elaborate, companies such as Panasonic and Weta Digital have contributed to production and promotion in exchange for advice and cross-marketing opportunities.

Facts & Figures

• Avatar has an estimated $500 million budget attached to it, including a $150 million marketing campaign.
• Highly complicated and advanced technology was used in the creation of Avatar, and the creators of that technology will turn their involvement in the film into an advertisement for their emerging business and technology.
• Because the film is showing in 3-D, ticket prices will be about 30% higher than in conventional theaters.

Best Quote

“We’re turning it into a business, as opposed to a path where everybody’s supposed to service ‘Avatar.’” – Vince Page, Co-Developer of Digital Technology for “Avatar’s” production.

Tags: 20th Century Fox, Avatar, film, James Cameron, News Corporation, technology