<![CDATA[Gawker: big money]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: big money]]> http://gawker.com/tag/bigmoney http://gawker.com/tag/bigmoney <![CDATA[Did Avatar Really Cost Half a Billion Dollars?]]> When a new James Cameron movie appears, Hollywood's industry watchers reach for their abacuses, first to tabulate the obscene amounts the film cost, and later, generally, to add up the obscene amounts the movie makes.

The fun usually starts with a good argument about how much the movie cost in the first place. Back before Titanic launched ten years ago, the entertainment world was scandalized by the notion that Cameron had spent $200 million to rebuild and sink the entire ship, then the highest budget for a movie.

Since Cameron broke that sound barrier, however, $200 million productions have become a dime a dozen and it takes a really major number, a number the sized of an ocean-liner and an alien mothership combined, to get Hollywood's attention.

Well, the New York Times kicked off the Cameron numbers game this weekend throwing into the ring a number big enough to still stop traffic and make executives gag on their Cobb salads. Half a billion is the figure NYT writer Michael Cieply put together, adding up the film's production, Cameron's personal participation and marketing.

A close reading of the piece reveals a lot of numbers, but taken together they don't quite add up to 500 of millions. A combination of the production budget ($230 million) and the marketing budget ($150) only gets you to $380, so you'd have to throw in a kitchen sink worth of other costs to add another $120 to that figure. To get near that price tag, you'd have to assume a much higher production cost, but our sources say that the final production did come in around the-seems-a-bargain-these-days $240 mark.

There can't be a Cameron numbers discussion, however, without a good old fashioned industry watchers numbers fight, however and immediately the web sprang into action. At the Hot Blog, veteran industry savant David Poland cried foul on the 500, saying Cieply's math fell at least a hundred million short:

He quotes the piece:

"When global marketing expenses are added, "Avatar" may cost its various backers $500 million."

Whoa!!! $270 million on... what... marketing?

"Fox's biggest investment in "Avatar" may be on the marketing side, where the company is planning to spend about $150 million around the world"

What? $230 million plus $150 million = $380 million. Where is the other $120 million?

There is no indication.

After taking further issue with the piece's profits projections, Poland concludes in a fit of pique, slinging the worst accusation you can make against a serious entertainment journalist, You're just like Nikki Finke!

I think it's great that after years of paying no attention, that the Paper of Record is now paying attention to one of the tools that studios use to reduce cash costs in production and marketing. But this $500 million thing is right out of Nikki Finke. If it's true, tell us how it adds up. And if you are throwing a number at the wall because some studio exec at another studio exclaimed, "The damn thing is going to cost Fox half a billion to put into theaters!" and your editor gave you to go ahead on the piece based on that, you are doing a disservice to everyone, from the studio to the filmmakers to the public.

Elsewhere however, the half-billion number appears to be sinking in. At the LA Times, Patrick Goldstein appears to accept the 500 completely.

While over at Chud.com Devin Faraci actively stands by the NYT numbers, but then goes on to bring us back to the larger point of the NYT piece, the idea that $500 million or $400 million it will be almost impossible for Avatar to turn a profit and that Fox studios has prepared for fact by selling off pieces of Avatar to investors around the globe, and that this fact will only increase the movement towards safe, explosion-heavy blockbusters that has already swallowed Hollywood.

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<![CDATA[Sarah Palin Ready For Her Very Own Book]]> Finally, Wasilla resident Sarah Palin has taken a concrete step towards "telling her story" without the distorting filter of the mainland media and mousy comedians. She's looking for a big fat book deal!

Alaska's finest person has hired big shot DC lawyer Robert Barnett, who spends all his time landing multimillion dollar book deals for other DC big shots like Hillary Clinton, Barack Obama, and the savior of our nation's health, Dr. Sanjay Gupta. All liberals! But now he's branching out, to help bring Sarah Palin's wit and wisdom to the literary world. Since Laura Bush just sold her memoir for less than $2 million, we'll estimate Sarah Palin's would be worth, oh, $8 million. Laura Bush might sell in Barnes & Noble, but Sarah Palin sells in the grocery store checkout line.

THR also drops in this unsubstantiated nugget:

While not an immediate option, TV news is considered an intriguing possible future career path for the telegenic Palin.

May we be so lucky. [THR]

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<![CDATA[Total Economic Meltdown Greets Slate Finance Site]]> Previewscreensnapz004-4Is it awful or wonderful that Slate launched its business website The Big Money the same day three large Wall Street institutions were in various stages of freefall? Characteristically, Slate takes the contrarian view: It's wonderful! Tons of news to cover! They'll "tap into people's... anxiety about the economy!" The joys of financial fearmongering aside, the implosion of financial services does tend to call into question how many more ads the site can sell to the likes of American Express. Also, two words: Portfolio magazine. Editor James Ledbetter (recently of CNNMoney.com) still isn't daunted:

Among the other competitors cited by Mr. Ledbetter were CNNMoney.com, Forbes and Fortune. Mr. Ledbetter draws distinctions between sites like TheStreet.com, which pitch stock tips, and what he intends The Big Money to be.

Rather than promising to “read us and we’ll make you rich,” Mr. Ledbetter is offering to “read us and we’ll make you smart.”

So basically, the New Yorker finance page writ large.

There is one pretty cool idea: The site has a Twitter account devoted to heckling the Wall Street Journal. Sadly, the editorial page appears not to be included in this.

[Times]

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<![CDATA[Al Gore Realizes Value Of Good Ads Too Late]]> algoread.jpegFormer wooden President-elect of the United States Al Gore was on 60 Minutes last night, being frumpy and endearing, as is his wont. His new project is promoting a huge $300 million ad campaign by the Alliance for Climate Protection, which is based on the (correct) theory that we Americans are such lazy, brainwashed zombies that we need a shiny, consumer-friendly ad campaign to convince us to stop choking ourselves with carbon dioxide. The 60 Minutes segment showed Gore visiting the ad agency, and even showed a clip of the ad, which is great free media exposure. Too bad its benefit was canceled out by the bitter taste left by the subsequent mutterings of Andy Rooney. Well, let's all hope this ad thing works so we don't die! After the jump, the first ad, which is Gore-like in its earnestness.

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<![CDATA[Microsoft Hires Too-Cool Ad Agency In Brilliant/ Dumb (?) Move]]> macpc.jpegMicrosoft has finally figured out that, despite being one of the world's most powerful corporations, it is getting its ass handed to it in the advertising arena. As annoying as those "Mac vs. PC" ads are, it's pretty amusing that the richest man in the world is having his company's consumer credibility shredded by the cultivated stubble and shrugs of Justin Long, who isn't even funny or anything. Now, Microsoft has struck back by handing a $300 million consumer advertising account to Crispin Porter & Bogusky, the HOT and HIP young Miami agency that brought us campaigns like the Miller Lite "Man Laws" and Burger King's scary, big-headed "King" figure. Things are about to get weird. A guide to what to expect, after the jump.

This is a conscious move by Microsoft, which bypassed more traditional super-agencies to give the account to CPB, which prides itself on making ads that are too smart by half. Maybe that's what Microsoft needs to kickstart its image, but it's a big gamble, considering the size of the market at stake. Or maybe CPB will pull back a bit on the wackiness. But in all likelihood, that's what they were selling, and that's what the company wants.

No word yet on what the campaign is gonna look like, but you can use your imagination, based on this small and selective sample of some of CPB's past work:

BK's Kick'n Chicken


Miller Lite Man Law


Volkswagen Unpimps The Auto

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