One stark lesson of this summer’s miserable box office: Studios may no longer be able to rely on overseas markets as a life raft for tentpoles that underperform in North America.
Paramount’s “Transformers: The Last Knight” grossed just $229 million in China, less than the $320 million 2014’s “Transformers: Age of Extinction” earned there when the country’s box office was significantly smaller. Worse, the total overseas revenue for “The Last Knight” was $471 million, nearly half the $859 million the previous installment earned.
As Hollywood’s domestic box office has cratered by more than 14 percent this summer, studios are discovering that other pricey studio projects — including Paramount’s “Baywatch” and Disney’s “Pirates of the Caribbean: Dead Men Tell No Tales” — are failing to score both at home and abroad.
“If [the box office] starts dwindling internationally, that’s a problem,” Paul Dergarabedian, the senior media analyst at ComScore, told TheWrap. “Studios have always counted on those international markets to make up the difference for any shortfall in the North American box office for specific films.”
But this year that strategy has proved to be less than meets the eye as established franchises are not proving to be as bankable as expected even as overseas box office has ticked up 3 percent so far this year (North American sales are down 6 percent for 2017 to date).
“Pirates of the Caribbean: Dead Men Tell No Tales” earned about $70 million less domestically than its 2011 predecessor, “On Stranger Tides,” and was by far the lowest-grossing movie out of all five of Johnny Depp’s “Pirates” films.
While the franchise continued to perform fairly well overseas, with “Dead Men” reeling in $618 million in international markets, that was the smallest foreign gross since the first “Pirates” film, “The Curse of the Black Pearl,” which came out 14 years ago and made just $3 million in the world’s second-largest movie market, China.
“Dead Men” hauled in $172 million in China but it still fell nearly $200 million short of the foreign gross for “On Stranger Tides.”
Even “Baywatch,” based on an internationally syndicated show that reached upwards of 1 billion people a week in nearly 150 countries, earned just $119 million internationally and a dismal $58 million in North America despite megawatt headliner Dwayne Johnson and plenty of hype. That simply wasn’t enough to make up for its belly flop at home. (The R-rated comedy didn’t get past China’s regulators.)
But with China’s appetite for this summer’s crop of Hollywood hits relatively light, and certain tentpoles like Sony’s “Spider-Man: Homecoming” not even hitting the market yet (the superhero flick premieres in China on September 8), the Middle Kingdom hasn’t come through for Hollywood this year.
While studios only get about one-fourth of the Chinese theatrical gross, compared with roughly half in the U.S., the sheer size of that market has frequently bailed out big-budget would-be blockbusters that flopped at home.
Paramount’s “xXx: Return of Xander Cage” grossed just $45 million at the domestic box office earlier this year, but took in $301 million internationally, led by China with $164 million. Headliners Vin Diesel and Donnie Yen — two of China’s biggest stars — undoubtedly helped push it up the Middle Kingdom’s charts.
And Legendary’s video-game adaptation “Warcraft” earned just $47 million at the domestic box office last year, but brought in a whopping $386 million in international markets, including $214 million in China.
Dergarabedian said sometimes it takes just one movie to turn things around. That happened in China this summer, pushing its box office up 6 percent year-over-year — but Hollywood had nothing to do with the country’s home-grown $800 million smash hit “Wolf Warriors 2.”
And while the European box office held strong during the dog days — helped by Warner Bros.’ “Dunkirk” — that also wasn’t enough to save the industry’s bacon.
Christopher Nolan’s World War II epic was extremely popular in the United Kingdom, where it grossed $63.2 million, making it the country’s second highest-grossing film of the year after Disney’s “Beauty and the Beast.” “Dunkirk” has grossed $397 million worldwide through August 23.
AMC Theatres, the world’s largest cinema chain, may be the best example of what’s happened this summer. The company has expanded in Europe (and is owned by a major Chinese entertainment company, Dalian Wanda Group) but its geographic diversity couldn’t compensate for a disastrous summer season at home.
The company’s stock tanked about 25 percent earlier this month after AMC previewed disastrous second-quarter earnings. Still, AMC CEO Adam Aron told investors, “Gains in Europe were more than counterbalanced by the weak American results.”
The movie business may be more international than ever, but Hollywood still shapes the box office. And there was no saving this dry, cold American summer.
25 Summer Movies We're Dying to See, From 'Alien: Covenant' to 'Spider-Man: Homecoming' (Photos)
Summer 2017 is bringing a wealth of promising movies to the cineplez. Here are some of the buzziest.
May 5: "Guardians of the Galaxy Vol. 2"
Chris Pratt, Dave Bautista, Bradley Cooper, and scene-stealer Baby Groot pick up right where they left off in this sequel to the 2014 Marvel hit.
Disney
May 12: "Snatched"
CinemaCon attendees got to see some extended footage of the comedy starring Goldie Hawn and Amy Schumer, who play mother and daughter who go on a vacation together and get involved in some unexpected criminal activity. It looks hilarious, and the movie marks Hawn's return to the big screen after a 15-year absence.
Fox
May 19: "Alien: Covenant"
Fans of the "Alien" franchise have been looking forward to the new film, which welcomes back Michael Fassbender as both Walter/David, as well as new cast members Danny McBride, Katherine Waterston, James Franco and Demian Bichir.
Fox
May 19: "Everything, Everything"
Based on a best-selling YA novel, director Stella Meghie's "Everything, Everything" follows a girl (Amandla Stenberg) who has lived in solitude her entire life because she's allergic to everything, but takes an interest in the boy (Nick Robinson) who's moved in next door.
WB/MGM
May 26: "Baywatch"
Dwayne Johnson, Zac Efron, Alexandra Daddario, Kelly Rohrbach and Priyanka Chopra star in this comedic feature film take on the iconic TV series. The trailers we've seen so far just make fun of Efron's character, and the whole movie looks like eye candy for men and women alike.
Paramount
June 2: "Wonder Woman"
It only took 75 years, but after making a huge splash in last year's "Batman v Superman," DC Comics Amazonian Superheroine finally headlines her own movie this summer. The film stars Gal Gadot and is directed by Patty Jenkins.
Warner Bros.
June 9: "The Mummy"
Tom Cruise headlines this updated take on the classic Universal monster. The remake tells us the story of an ancient princess (Sofia Boutella) who was denied her chance to be the next Pharaoh and wreaks havoc centuries after the fact.
Universal
June 16: "All Eyez On Me"
The Tupac Shakur biopic has excited fans since the announcement of the project, and further casting notices including that of Kat Graham and Danai Gurira have enticed fans further to look forward to its release.
Lionsgate
June 16: "Rough Night"
The first trailer for the film previously titled "Rock That Body" was full of sex, drugs and, yes, murder. It's no wonder that we're so eager to see the comedy starring Scarlett Johansson, Kate McKinnon and Zoe Kravitz.
Sony
June 23: "Transformers: The Last Knight"
Michael Bay returns for his final "Transformers" movie and intends to go out with quite a bang -- literally. Mark Wahlberg also returns and Anthony Hopkins star in the latest installment which sees humanity at war with the Transformers while Optimus Prime is MIA.
Paramount
June 23: "The Big Sick"
Kumail Nanjiani's "The Big Sick" was one of the hottest titles at the Sundance Film Festival and is based on the true story of his relationship with his now-wife, co-screenwriter Emily Gordon (played on screen by Zoe Kazan). When she gets sick with a mysterious illness, he must team up with her parents to overcome the crisis.
Amazon
June 23: "The Beguiled"
Sofia Coppola's drama follows a girls' school in Virginia which takes in a wounded soldier. Soon, sexual tension and jealousy takes over the school. The period drama stars Nicole Kidman, Kirsten Dunst, Elle Fanning and Colin Farrell.
Focus
June 28: "Baby Driver"
From director Edgar Wright, the film revolves around a young but talented getaway driver named Baby, played by Ansel Elgort. In a sign of confidence, Sony's TriStar moved up the release from the dead of August.
Sony
June 30: "Despicable Me 3"
Steve Carell plays not one but two characters in this movie -- Gru and his twin brother, Dru. And the duo team up for one last heist with the assistance, of course, of dozens of minions.
Universal
July 7: "Spider-Man: Homecoming"
After being introduced as part of the Marvel Cinematic Universe last year in "Captain America: Civil War," Tom Holland returns as the web crawler in his standalone film to face off against Michael Keaton's villainous Vulture. Robert Downey Jr. co-stars as Iron Man.
Sony
July 7: "A Ghost Story"
Hot off his Oscar win for "Manchester by the Sea," Casey Affleck stars in "A Ghost Story" alongside talented actress Rooney Mara, the film follows Affleck’s white-sheeted ghost who unstuck in time, forced to watch passively as the woman he loves slowly slip away.
A24
July 7: "Step"
Buzzy Sundance doc "Step" follows a girls’ senior-year high school step team in inner-city Baltimore as they strive to become the first in their families to go to college.
Fox Searchlight
July 14: "War for the Planet of the Apes"
Director Matt Reeves returns for the third movie in the rebooted franchise after helming 2014's "Dawn of the Planet of the Apes." This time, Woody Harrelson is the film's main antagonist, which combined with the franchise's epic CGI apes, should make for a solid sci-fi film.
Fox
July 21: "Dunkirk"
CinemaCon attendees also saw footage of Christopher Nolan's WWII epic, which stars Tom Hardy, Cillian Murphy and Harry Styles as well as newcomer Fionn Whitehead in the lead role. Nolan fans and Styles fans are sure to flock to the theaters.
Warner Bros.
July 21: "Girls Trip"
Jada Pinkett Smith and Queen Latifah reunite 20 years after "Set It Off" along with Regina Hall. The ladies go on a girls trip to New Orleans, which obviously turns wild.
Universal
July 28: "Atomic Blonde"
Charlize Theron's bisexual spy thriller follows MI6’s most lethal assassin through a ticking time bomb of a city simmering with revolution and double-crossing hives of traitors. Theron's Agent Lorraine Broughton is equal parts spycraft, sensuality and savagery.
Focus
August 4: "Detroit"
Director Kathryn Bigelow and producing partner Mark Boal's highly anticipated followup to their acclaimed 2012 drama “Zero Dark Thirty" is another fact-based drama with a stellar cast: John Boyega, Will Poulter, Jason Mitchell, Anthony Mackie and Jack Reynor. The film recounts the racially charged riots that rocked the Motor City in 1967.
August 4: "The Dark Tower"
Fans of Stephen King's genre-defying multi-book saga have been clamoring for a filmed version for decades and the first installment finally arrives with Idris Elba as the Gunslinger Roland Deschain chasing Matthew McConaughey's Man in Black across a highly stylized, scorched-earth landscape.
Sony
August 11: "Annabelle: Creation"
The followup to 2014's supernatural horror thriller "Annabelle" follows a couple who just lost their daughter -- but as soon as they invite a nun and some orphans into their home, some unexplained things begin to happen.
New Line
August 18: "The Hitman's Bodyguard"
Ryan Reynolds and Samuel L. Jackson make a great duo in this action comedy. And Salma Hayek adds another layer of laughs to the movie, which follows a bodyguard (Reynolds) who must get one of the biggest hitman's in the world to The Hague. Obviously, the two have history.
Getty Images
1 of 26
TheWrap Summer Movie Preview 2017: ”Guardians of the Galaxy Vol. 2,“ ”Despicable Me 3“ and ”Atomic Blonde“ are also among season’s big releases
Summer 2017 is bringing a wealth of promising movies to the cineplez. Here are some of the buzziest.