The Costly Consequences of Snow White's Delay on Disney's Profitability

Article Summary

Disney's film Snow White, starring Rachel Zegler and Gal Gadot, could challenges breaking even at the box office.

Disney's UK subsidiary, Hidden Heart Productions, made a significant investment of $209.3 million in the production of the film. They received a reimbursement of $41.1 million through the UK government's Film Tax Relief scheme. To reach the break-even point, the film needs to generate a minimum of $340 million in revenue, considering that theaters and studios typically take 50% of the box office earnings. However, uncertainty arises due to the recent poor performance of movies.

Disney's Snow White faced a major setback last week, with its release date being pushed back an entire year. Additionally, a new report reveals that the film, starring Rachel Zegler and Gal Gadot, is encountering significant challenges in terms of breaking even at the box office. Forbes conducted an investigation which showed that even before the extensive delay and evident reshoots, indicated by recently released imagery where Disney has clearly strayed from their original plans to "dwarf-wash" their first-ever feature film, Snow White was already facing an uphill battle due to the less-than-ideal performances of other recent Disney films.

Film production finances are usually kept clandestine, with studios merging individual movie expenses into their overall budgets without specifying the allocations for each project. However, there are exceptions to this, particularly for films shot in the UK like Snow White. This specific movie was filmed not only at the renowned Pinewood Studios on the outskirts of London but also at various locations throughout the UK.

Productions conducted in the UK can benefit from the government's Film Tax Relief scheme, which allows studios to receive a cash reimbursement of up to 25% of their UK expenditures. To be eligible for this incentive, the UK expenditures must constitute at least 10% of the movie's total budget. In order to take advantage of the scheme, studios establish separate entities for each movie and are required to submit financial statements that provide details on various aspects such as staff numbers, salaries, expenses, and the amount of cash reimbursement received. These production companies often use code names to ensure confidentiality, particularly when applying for location filming permits, in order to minimize fan interference.

How Much Did 'Snow White' Cost to Make?

Image via Disney

Disney's UK subsidiary, Hidden Heart Productions, took charge of the Snow White project. Recently disclosed financial statements indicate that Disney pumped a staggering $209.3 million (£150.5 million) into the film's production over a three-year period ending on July 31, 2022. These statements attribute a portion of this substantial expense to production delays caused by the pandemic, which is not uncommon for major blockbuster movies.

Before any post-production work took place on the movie, it is important to note that the significant expenditures of filming activities in the UK have positive effects. Not only do studios utilize local services such as equipment rentals, travel, and visual effects companies, but they also generate employment opportunities. For example, Hidden Heart Productions employed 354 staff members, excluding freelancers who make up the majority of a film crew. This investment in local talent and services by Disney is easily justified as mutually beneficial.

With the UK tax benefit, Disney received a reimbursement of $41.1 million (£29.5 million), reducing the net expenditure on Snow White to $168.2 million. This amount forms the film's basic budget that needs to be covered. It is important to consider that these costs are expected to significantly increase, likely already accounting for changes in release and the disposal of promotional material. Additionally, these costs do not include any expenses related to post-production work on the movie.

In order to break even, the film needed to earn at least $340 million by July 2022, assuming theaters and studios split the film's box office revenue equally. However, this was before Marvel movies faced disappointing outcomes, Indiana Jones encountered struggles, and The Marvels premiered to worrisomely low numbers. As for Snow White, audiences will have to patiently await its release in theaters on May 22, 2025.

Snow White

Release Date May 22, 2024Director Marc WebbCast Gal Gadot, Rachel Zegler, Andrew Burnap, Ansu KabiaMain Genre AdventureGenres Adventure, Drama, FantasyWriters Greta Gerwig, Erin Cressida Wilson

Editor's P/S

As a hard fan of Disney, I am concerned about the costly consequences of Snow White's delay on Disney's profitability. The film has faced setbacks and reshoots, which have impacted its budget and raised concerns about its impact on the company's financial performance.

The film's budget has already reached $209.3 million, and it is estimated that it will need to generate at least $340 million in revenue to break even. This is a significant challenge, especially considering the recent poor performance of other Disney films.

I am also concerned about the impact of the delay on the film's quality. Reshoots can often lead to a disjointed and unsatisfying film. I hope that Disney takes the time to ensure that Snow White is a high-quality film that is worthy of its fans.