If you’ve seen marketing for the new CGI-intensive Gerard Butler vehicle Gods of Egypt, you probably won’t be surprised to learn that its opening weekend box office is not tracking well. The Hollywood Reporter notes that the film cost $145 million to make, and analysts expect it bring in a paltry $12-15 million this weekend. It looks like a pending disaster for studio Lionsgate. But never fear, the Australian taxpayer is here. From THR:
Lionsgate insiders say the studio’s exposure on the production budget is reduced to roughly $10 million after hefty Australian tax rebates and selling off foreign rights. However, that doesn’t include tens of millions in marketing costs.
Perhaps the effect that government subsidy has on production quality in other industries applies to Hollywood as well. Any way to tweak these tax deals so rebates only pay out to good films?