The $808M series that’s the biggest flop in TV history… and there’s still three seasons to go
As a seasoned entertainment industry observer with over two decades of experience, I must say that the production costs for “The Lord of the Rings: The Rings of Power” series have left me rather astonished. Having seen numerous high-budget films and TV shows, the figures involved in this production are nothing short of breathtaking.
Despite nearly two-thirds of its audience abandoning “The Rings of Power,” Amazon’s Lord of the Rings prequel series, it has still managed to break records as the most costly television production in history, with expenses escalating to a staggering $808.9 million for its first season.
In the year 2017, it’s believed that Amazon shelled out approximately $250 million for television broadcasting rights of The Lord of the Rings, a literary masterpiece originally penned by British author JRR Tolkien back in the 1950s.
Jeff Bezos, head of Amazon and a passionate admirer of the fantasy series, took an active role in the talks, recognizing the opportunity to adapt it into a program that could challenge HBO’s hit show, Game of Thrones.
It didn’t end up being the heavy hitter he hoped for.
In 2022, when the initial season of The Rings of Power debuted on Amazon’s streaming platform, approximately 37% of American viewers who began watching the series ended up finishing it, as reported by The Hollywood Reporter.
Two years later, the second season didn’t fare any better.
According to data from streaming analytics company Samba TV, approximately half as many U.S. households (around 900,000) viewed the first episode of the new show within four days of its premiere, compared to the audience for the season one pilot.
The production encountered intense controversy due to its multi-ethnic ensemble stirring dissent among book enthusiasts, who argued that adaptations made to reflect contemporary society compromised the authenticity of J.R.R. Tolkien’s classic work.
The shows earned an average rating of 49% on Rotten Tomatoes for both seasons, while Game of Thrones received a score of 85%.
As a connoisseur of all things pop culture, I must admit that “The Rings of Power” hasn’t managed to capture the same level of cultural zeitgeist as “Game of Thrones,” despite being adapted from a series of books that are widely recognized and revered. This grand endeavor has certainly come with its share of costs, not just financially but also in terms of the high expectations that accompany such an iconic source material.
The upcoming Amazon series is a prequel to the works of J.R.R. Tolkien, which were adapted into six films by Academy Award-winning director Peter Jackson, featuring top actors like Cate Blanchett and Ian McKellen.
The films generated an impressive $5.9 billion at the box office, prompting Amazon to allocate a substantial budget – typically reserved for blockbusters – for its television series.
Preliminary figures suggest that the production of five seasons will cost approximately $1 billion, however, nearly the same amount has already been expended on the first two seasons.
Instead of paying just for watching a particular show, subscribers gain entry to that program, as well as a variety of other content, when they sign up for an Amazon Prime membership.
From my perspective as a lifestyle expert, it’s challenging to predict if The Rings Of Power will eventually turn a profit, as suggested by Tom Harrington from the media research firm, Enders Analysis.
In most cases of streaming models, it’s quite challenging to definitively assign profitability to individual pieces of content. This difficulty arises due to the model’s structure, as it’s rarely possible to pinpoint the exact contribution of one piece of content without significant increases in subscriptions directly related to that specific show, or if there’s a clear connection between viewing the program and other sources of income.
Considering the high production costs of The Rings of Power, lower-than-expected viewership (particularly in the US and UK), and the persistent challenge Amazon faces in linking Prime Video and shopping, it seems doubtful that Amazon is seeing a significant profit from their investment in the series.
Typically, the costs associated with producing streaming shows are kept confidential, as studios tend to incorporate these costs into their total expenditures without specifying the exact amount spent on each individual production.
On the contrary, productions filmed in the United Kingdom and New Zealand deviate from this norm. Specifically, The Rings of Power were created in both nations.
The governments involved partially refund the expenses incurred during show production, and production studios establish individual companies for each project as a way to demonstrate their costs.
Each year, these firms need to submit their financial reports, illuminating the typically hidden expenses associated with large-scale productions.
In New Zealand, the initial season of The Rings of Power was produced by GSR Productions, a branch of Reunion Pacific Entertainment – a Canadian production company responsible for creating this show exclusively for Amazon.
The recently disclosed financial records of GSR indicate that it required approximately NZ$323.2 million to produce season one, with an additional NZ$199.5 million allocated for visual effects during the period from July 1, 2021, to June 30, 2022, shortly before the series debuted.
The expensive budget of $350.7 million for the first season was largely attributed to the elaborate special effects used to depict vast armies of orcs moving through picturesque, fairy-tale landscapes.
Approximately 1,500 visual effects artists, hailing from around 20 different studios, were involved in the production of the series, with Weta FX being one of them. This studio is renowned for creating the special effects seen in the Lord of the Rings films.
In the second season, filmed in the United Kingdom, and premiered in August of this year, we found stunning imagery persisting.
It’s clear that the Tolkien estate preferred filming The Lord of the Rings series in the United Kingdom from the outset, given that the settings were a significant inspiration for the original novels.
Amazon showed a strong affection for the nation, as evidenced by its acquisition of the film studio located near London in July of this year – where the second season was filmed.
Last week saw the unveiling of the recent financial reports for GSR UK Productions, which disclosed that a total of approximately £364 million ($458.2 million) was expended on production of the second season, with filming wrapping up in June 2023.
Moreover, not only did the show secure its funding, but it additionally benefited from a £72.8 million refund from the British government, while their counterparts in New Zealand returned 20% of the expenses incurred within the country.
The costs are expected to continue rising since the second season premiered over a year after the financial reports were made, allowing for most of the expensive digital effects work to be completed during that period.
I was deeply immersed in the enchanting allure that seemed to sweep over the United Kingdom, particularly London, as I contributed my skills with Disney’s Industrial Light & Magic team, working tirelessly on our captivating show.
Studios also spend on local services, such as props suppliers, security and catering.
The spending keeps local workers in jobs, and the financial statements reveal that a peak of 522 staff worked on The Rings Of Power, with total pay coming to $35.7 million (£28.3 million).
Read More
- MANA PREDICTION. MANA cryptocurrency
- KAS PREDICTION. KAS cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- POLYX PREDICTION. POLYX cryptocurrency
- GBP EUR PREDICTION
- CHZ PREDICTION. CHZ cryptocurrency
- ALPHA PREDICTION. ALPHA cryptocurrency
- TURBO PREDICTION. TURBO cryptocurrency
- EUR UAH PREDICTION
- GMX PREDICTION. GMX cryptocurrency
2024-11-26 05:21