'Avatar' sequel misses estimates, but theater executives not concerned: 'Moviegoers are waiting' - Yahoo Finance

Disney's (DIS) "Avatar: The Way of Water" delivered manager James Cameron his archetypal $100-million opening play — but missed manufacture expectations of $170 million-plus.

The much-anticipated sequel, which runs 3 hours and 12 minutes, secured astir $134 cardinal successful home markets — tying with Warner Bros.' (WBD) "The Batman" arsenic the fifth-highest opener of 2022, according to Comscore data. Disney, which saw shares slump 3% successful aboriginal trading connected Monday, had anticipated a scope betwixt $135 cardinal to $150 million.

International markets helped boost the movie to a $434.5 cardinal commencement aft it secured $300.5 cardinal overseas.

IMAX (IMAX) CEO Richard Gelfond told Yahoo Finance: "'Avatar: The Way oregon Water' is an unthinkable movie with an A CinemaScore and large connection of mouth, and based connected our beardown pre-sales done the coming weeks it’s a harmless stake that galore moviegoers are waiting until the holidays to drawback it connected the with the champion cinematic acquisition imaginable — namely, IMAX."

"James Cameron films person a well-known past of agelong legs astatine the planetary container office, and we expect that this 1 volition beryllium nary different," the enforcement added.

The movie notched much than $48.8 cardinal successful planetary IMAX summons income implicit the weekend, breaking the grounds for the biggest December opening of each time. It's besides the the 2nd highest-grossing IMAX opening successful past (the archetypal "Avatar" is archetypal connected the list), arsenic 11.2% of wide moviegoers chose to spot the movie connected IMAX screens.

Nevertheless, shares of IMAX remained nether unit successful aboriginal trading connected Monday, down astir 3%. Theatrical giants AMC Entertainment (AMC) and Cinemark (CNK) besides slipped connected the news, arsenic they were down astir 5% and 6%, respectively.

The archetypal "Avatar," released successful 2009, secured conscionable $77 cardinal successful its opening play earlier it went connected nab $2.74 cardinal globally, becoming the highest grossing movie ever.

According to container bureau analytics level EntTelligence, the sequel should travel akin trends. Preview nighttime and opening time represented lone 53% of income for opening play — a affirmative motion for semipermanent success, since it suggests the movie is not "front-loaded" and could person sustained involvement implicit time.

In comparison, 70% oregon much of opening play takes for superhero films typically travel from preview nighttime and opening day. Anything little than 70% is simply a beardown indicator of imaginable sustained success, the level noted.

The "Avatar" sequel carried a reported accumulation fund of $250 million-plus, which Cameron noted makes it "the worst concern lawsuit successful movie history," and volition person to beryllium the third- oregon 4th highest-grossing movie conscionable to interruption even.

"The stakes couldn't beryllium higher," Comscore expert Paul Dergarabedian antecedently told Yahoo Finance, noting the film's rare China release volition beryllium a "big benefit" arsenic it looks to adhd box-office dollars.

China was the apical overseas marketplace for the sequel, with $57.1 cardinal successful opening play summons sales. Still, that fig was starkly beneath estimates of $100 million-plus arsenic manufacture insiders reassess what the film's show volition yet look similar successful the country.

One hazard remains China's zero-COVID policy, though caller signs person suggested a softening successful that presumption from Beijing. Coupled with the deficiency of Hollywood-approved films, China's theatrical ecosystem has been a resistance for U.S. films, with the country's container bureau down 35% compared to the aforesaid constituent successful 2021, according to information from consultancy Artisan Gateway cited by Variety.

The archetypal "Avatar" heavy relied connected overseas markets with much than $200 cardinal of its $2.74 cardinal planetary full stemming from mainland China.

Alexandra is simply a Senior Entertainment and Media Reporter astatine Yahoo Finance. Follow her connected Twitter @alliecanal8193 and email her astatine alexandra.canal@yahoofinance.com

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