Why Hollywood Is Cashing in on Cut-Rate Comedies
By Lucas Shaw
The cost of a laugh is declining in Hollywood.
Movie studios have been making comedies on the cheap this summer, a strategy that has paid off with hits like Neighbors, Ride Along, and most recently Tammy. Each of those cost less than $30 million to produce and paid off. The first two more than quintupled their budget at the box office.
As for the third, Tammy did not win its opening weekend or receive strong reviews, but its $33 million haul over the July 4 holiday was more than enough for New Line, which produced the film for $20 million, to see its way to profit.
source: Box Office Mojo
Tammy is in good company: Of the six comedies released by studios this summer, five of them cost less than $50 million to make. The one exception, 22 Jump Street, is a sequel. It will also be the highest-grossing of them all.
Contrast this year with 2010, when eight of the year’s 10 highest-grossing comedies cost more than $50 million to produce. The average cost of those movies was $74.1 million. That number dropped to $51.2 million in 2011 and has not crossed $50 million since then. The average so far this year? A modest $33 million.
“In the past, the purse strings were looser so you could take more risk,” Chris Bender, the producer of We’re the Millers and Horrible Bosses 2, told TheWrap. “It was easier to make big deals for talent.”
Bender has been involved with many of the most successful comedy franchises of the past 15 years, co-producing American Pie, executive producing The Hangover and making We’re the Millers with New Line. New Line has a long history making comedies for bargain prices, releasing Harold and Kumar Go to White Castle, the original Austin Powers and Horrible Bosses.
There was a time when those movies were the exception to the rule. Stars such as Jim Carrey, Adam Sandler and Vince Vaughn commanded $60 million to $80 million to make comedies such as Yes Man, Click, and Couples Retreat.
What’s happened since then? The rise and fall of the DVD market, as well as the proliferation of quality programming on cable television.
The DVD market once buoyed comedies, transforming modest box office hits like Old School and Anchorman into cultural sensations. As the market for DVDs dried up, greater receipts from foreign territories helped offset the losses. Comedies tend to be a tough sell overseas.
“It’s harder to get comedies made,” Bender said. “Even if a comedy didn’t work internationally, there was a huge chunk of revenue that came from DVDs. Once DVDs went away, international became more important; foreign becomes essential.”
Sandler still got $80 million to make Grown Ups 2, but this summer’s Blended was his cheapest comedy in more than a decade at $40 million. Carrey reprised his role as Lloyd in Dumb and Dumber To for $35 million while Horrible Bosses 2, the sequel to a $210-million hit, was made for almost the same price. Both movies will open in November.
No comedy opening between now and then sports a massive budget either. Jason Segel and Cameron Diaz made Sex Tape for $42 million while Fox will release Let’s Be Cops, a cheap August comedy with nothing but upside.