Blue Sky Studios has done it again. Their latest movie, Rio, was released overseas over the weekend and has already grossed a staggering $55 million with 19 markets (including the US) yet to open in.
Why does this interest us? Because Blue Sky Studios is the same animation studio behind the wildly successful Ice Age franchise. While domestic totals for Ice Age have remained roughly the same across the trilogy, the foreign totals for each successive movie has ballooned. The studio’s latest installment pulled in nearly $900 million with almost 80% of it’s total box office receipts coming from outside the United States. Clearly there’s some magic formula over at Blue Sky Studios that helps them appeal to the global marketplace.
This is awesome, but once again, why do we actually care about these foreign markets? In a recent announcement at CinemaCon, a Warner Bros. executive said that he thinks China will surpass the US box office in revenue in a decade. This conclusion may be overly optimistic, but the reason the industry cared about the statement is the implication it made that foreign box office growth in countries like China, India, and Brazil are the future of the film industry.
The undisputed champion of animated films here in the United States is currently Pixar. However, the all time most popular animated film in foreign markets doesn’t come from the Disney owned animation studio. Ice Age: Dawn of the Dinosaurs grossed over $690 million outside of the United States besting Toy Story 3′s $650 million. The point is that if the environment changes for where the top dollars come from, studios will have to certainly change their positioning not just in how they market the film, but also on the creative side.
It’s with these implications that studios are scared out of their minds. They barely understand what it takes to succeed in the United States, and there are clear differences between domestic and foreign markets in tastes which will complicate the insurance of mass appeal. Even though this prospect is scary, studios are embracing it because, to put it simple, money is money.