A recent report from Deadline details the financial losses Disney is expected to take on the box office disappointment, *Tron: Ares*. However, the report may have slightly misrepresented the actual numbers. While Deadline estimates losses of over $132 million, the total could actually exceed $250 million. We’re going to explain the accounting methods used that contribute to this larger loss.
First, here’s the excellent reporting of the Deadline stuff from Geeks + Gamers:
The recently released report shows that making *Tron: Ares* was much more expensive than first thought. Production costs totaled $220 million, and Disney spent another $102.5 million worldwide on marketing and promotion – everything from elaborate displays at Comic-Con to a Nine Inch Nails concert for the movie’s premiere. In total, Disney invested an estimated $347.5 million in the film.
— Marvin Montanaro, Geeks + Gamers
The financial analysis in *Deadline* seems misleading because it uses some accounting tricks that make the losses appear smaller than they likely are. Let’s examine a specific paragraph from Anthony D’Alessandro’s article in *Deadline* that needs closer scrutiny.
With box office receipts of $160 million, *Tron: Ares* generated $72.2 million in worldwide theater rentals, $37.6 million from home entertainment, and nearly $100 million from television distribution. An additional $5 million came from airline licensing, bringing total revenue to $214.8 million. However, the film’s net production cost was $220 million (benefiting from tax credits in Vancouver, BC), and marketing and publicity (including Comic-Con stunts, light cycle tours, and a large premiere event) cost $102.5 million. Adding in $10.8 million in other expenses and $14.2 million in residuals brings the total cost to $347.5 million. This results in a loss of $132.7 million.
Okay, so I was just looking at the projected profits for home television, and get this – they’re claiming *Tron* will actually bring in $100 million! That sounds good, right? Well, it only brings the total losses down to around $132 million or more. But here’s the thing: who’s going to *pay* that $100 million for *Tron* to appear on TV? It quickly becomes clear where this is heading. Basically, it’s going to be Disney+ and ABC, or other channels owned by Disney. That’s the key – they’re just shifting money around within the company, making it *look* like a profit.
I really respect D’Alessandro and *Deadline*, but this seems a bit odd. Disney is essentially paying itself $100 million for *Tron* so it can stream on Disney+ and air on ABC. It’s not like the content is going to a competitor like Netflix or CBS – it’s staying within Disney! So, most of that $100 million is just moving from one part of Disney to another. That’s my understanding of how this deal works.
So did Tron: Ares flop and lose $132M+ like Deadline says? Yes.
Did Tron: Ares lose $250M+ like I say? In very short order… probably yes.
It’s often hard to understand the financial side of this industry, and most people aren’t aware of how things really work. We want to clarify what’s happening, and we welcome anyone with more detailed information to help us get an even clearer picture of where the money is going. We’d be thrilled to have that level of insight!
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2025-10-20 20:56