Should we care how much AVATAR costs? Probably not.

November 9th, 2009 at 04:52pm Will Pfeifer

According to the New York Times, the total cost for James Cameron’s upcoming sci-fi extravaganza, AVATAR, could reach the fabled $500 million mark…

“The final cost of the film has not been tallied, as Mr. Cameron, who has worked on the film for 15 years, and his collaborators, as far-flung as Weta Digital in New Zealand, continue to complete their work. Published reports have put the production budget at more than $230 million.  But the price tag would be higher if the financial contribution of Mr. Cameron and others were included. When global marketing expenses are added, AVATAR may cost its various backers $500 million.”

On the one hand, that’s a lot of money. On the other hand, does that really matter to moviegoers?

As Kristen Thompson says over at the Observations on Film Art blog in a post titled “Don’t Knock the Blockbusters”, in most cases we don’t know (or care) how much it costs to develop a new car, or publish a book, or record a CD. And when that car/book/CD is released, those development costs don’t have much of an effect on the price of the product. With movies, we generally know exactly how much it costs to develop (i.e. film) one, but why do we care? When that movie hits theaters, whether it’s a $500 billion AVATAR or a $15,000 PARANORMAL ACTIVITY, the ticket price is going to be about the same.

And, in a big picture, global economic sense, expensive Hollywood movies are, no kidding, good for America — because they’re what foreign audiences really want to see. As Thompson says…

“Yes, it may sound absurd that it requires $200 million to make a movie, especially one that gets mediocre reviews from critics and fans. Still, from a business point of view, it makes sense and it’s good for the country. It’s especially important in a period of financial crisis, when the movie industry’s income seems considerably less affected than many others. Our overall trade deficit is falling, since Americans are saving more and buying less from abroad. This year the film and television industry’s share of the surplus will presumably grow.”

It doesn’t mean they’re good artistically or creatively, or even entertainly. But economically speaking, a $500 billion movie can be good for Uncle Sam, even if it bombs here in the States.

Though you can bet that James Cameron is hoping and praying that isn’t the case with AVATAR. We’ll find out soon enough. The movie opens Dec. 18.

Entry Filed under: Box office, Upcoming movies, Sci Fi