Despite Red One’s $250 Million Budget, Its $34 Million Opening Weekend Isn’t a Concern for Amazon

Red One didn’t quite hit the mark at the box office, which might raise eyebrows given its hefty production costs. However, Amazon doesn’t seem overly worried, thanks to the backing of Prime Video.

According to a report by Variety, Red One’s debut weekend pulled in just $34 million in the U.S., quite a ways off from its whopping $250 million budget. Globally, it’s raked in about $84 million so far, which still leaves much to be desired. David A. Gross from the consulting firm Franchise Entertainment Research commented, “Spending $250 million on a Santa Claus tale is quite high. The initial earnings aren’t a disaster, but they fall short of the mark considering the $250 million investment, not to mention the additional marketing and distribution expenses. Ideally, this film shouldn’t have exceeded a $150 million budget.”

Amazon seems to be playing the waiting game, seeing how the movie fares as the holiday season approaches. Kevin Wilson, who heads theatrical distribution for Amazon MGM, noted, “We must assess how we’ll stack up through the holidays. We’re facing stiff competition… movies like Wicked, Gladiator 2, and Moana 2 are on the horizon. But we offer something a bit unique compared to these blockbusters.” That unique aspect? Prime Video. Amazon seems to be betting that even if the film doesn’t soar at the box office, it’ll still generate buzz leading up to its Prime Video release.

Wilson further explains, “The audience’s reception might vary, but the value of these movies aligns differently with our business model. If we manage to release these films in theaters and recoup our print and advertising costs, why not go for it? We’re effectively getting a pre-paid extensive marketing campaign before the film even hits streaming.”

As of now, streaming platforms keep their viewership numbers under wraps, leaving us guessing about the film’s true success unless, as Variety mentions, Red One somehow lands a sequel. Until then, understanding if such a significant investment for a lackluster box office return was worthwhile remains tricky.

As for the streaming release for Red One, that’s still a mystery. So, if you’re among those not rushing to the theaters, you’ll have to sit tight a bit longer.