'Tenet' inching toward $300mn mark, Warner Bros. will lose money
What's the story
Tenet might not earn as expected because theaters in New York and Los Angeles continue to remain shut. This has resulted in a revenue of only $3.4 million for this Christopher Nolan venture out of 2,850 locations throughout the fourth weekend of its domestic screen run. Although the film has earned a reassuring $242 million in overseas screenings, it's only $41.2 million domestically.
Tactics
Why is Warner Bros. going against the industry norms?
Even though the domestic run is poor, Warner Bros. is inching closer to the $300mn total revenue-mark as it reported a weekly overseas earnings of $15.8mn in the fourth weekend. Going against industry norms of showing daily box office revenues, the studio is carefully guarding its data so that rivals and media don't term it as a failing tentpole by ignoring the COVID-19 hardships.
Strategy
California drive-ins are giving good business to 'Tenet'
The gloomy domestic performance of Tenet also includes Canada, apart from US, and so it's increasingly relying on overseas ticket sales to pick up the business. Meanwhile, WB has changed its policies since the film is doing well in drive-in screenings. Initially refusing to allow to screen the film there, the studio is now using California drive-ins to sustain business and make some profit.
Quote
"In NY, will continue to track data and the science"
Freeman Klopott, Press Officer, New York State Division of the Budget told Deadline that it's good to wait as theaters in many locations have shut again due to health concerns. "In NY, we will continue to track the data and the science, and we will make a decision on re-opening them here when health experts determine it is safe to do so," Klopott said.
Finances
Warner Bros. needs $500mn to break even, $800mn to profit
Although reaching the $300mn mark sounds impressive given the pandemic, analysts say Warner Bros. may lose heavy money with Tenet as they reportedly need a $500mn business to break even and a $800mn earning to profit. Many theaters in the country have shrunk to weekend and evening shows only as distributors do not find it feasible to keep them open all-day long.