Disney’s (DIS) Avatar: The Way of Water gave director James Cameron his first $100 million opening weekend – but fell short of industry expectations of over $170 million.
The highly anticipated sequel, which runs at 3 hours and 12 minutes, has grossed around $134 million in domestic markets – tied with Warner Bros. (WBD) “The Batman” as the fifth highest-grossing opener of 2022 according to Comscore data. Disney, whose shares fell 3% in early trade Monday, had expected a range of between $135 million and $150 million.
International markets helped push the film to a $434.5 million start after securing $300.5 million overseas.
Richard Gelfond, CEO of IMAX (IMAX), told Yahoo Finance, “‘Avatar: The Way or Water’ is an incredible film with an A CinemaScore and great word of mouth and based on our strong pre-sales over the coming weeks it’s a safe bet Thing is that many moviegoers are waiting until the holidays to see it in the best cinematic experience possible – namely IMAX.”
“James Cameron films have a well-known history of staying strong at the global box office and we expect it will be no different,” added the executive director.
The film grossed more than $48.8 million in worldwide IMAX ticket sales over the weekend, breaking the record for the biggest December opening ever. It’s also the second highest-grossing IMAX opening in history (the original Avatar tops the list), as 11.2% of all box office admissions chose to see the film on IMAX screens.
Still, shares of IMAX remained under pressure in early Monday trading, shedding about 3%. Cinema giants AMC Entertainment (AMC) and Cinemark (CNK) also slipped on the news, falling about 5% and 6% respectively.
The original Avatar, released in 2009, secured just $77 million in its opening weekend before grossing $2.74 billion worldwide and becoming the highest-grossing film of all time.
The story goes on
According to cash register analysis platform EntTelligence, the sequel should follow similar trends. Preview night and opening day accounted for just 53% of opening weekend sales – a positive sign of long-term success as it suggests the film is not “front-loaded” and could have sustained interest over time.
In comparison, 70% or more of opening weekend footage for superhero films typically comes from preview night and opening day. Anything below 70% is a strong indicator of potential sustained success, the platform noted.
Director James Cameron arrives at the world premiere of ‘Avatar: The Way of Water’ on December 6, 2022 in London, Britain. Portal/Toby Melville
The Avatar sequel had a reported production budget of over $250 million, which Cameron says is “the worst business case in film history” and has to be the third or fourth highest-grossing film just to break even .
“The stakes couldn’t be higher,” Comscore analyst Paul Dergarabedian previously told Yahoo Finance, noting that the film’s rare release in China will be a “huge benefit” as it’s expected to boost box office dollars.
China was the top overseas market for the sequel, with $57.1 million in opening ticket sales over the weekend. Still, that figure was well below estimates of over $100 million as industry insiders reevaluate how the film will ultimately perform in the country.
One risk remains China’s zero-COVID policy, although recent signs suggest Beijing is softening that position. Coupled with the lack of Hollywood-legal films, China’s theatrical ecosystem has been a drag on U.S. films as the country’s box office fell 35% compared to the same point in 2021, according to data from consultancy Artisan Gateway cited by Variety.
The original “Avatar” relied heavily on foreign markets, with more than $200 million of its $2.74 billion global total coming from mainland China.
Alexandra is a senior entertainment and media reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at [email protected]
Click here for the latest stock tickers from the Yahoo Finance platform
For the latest stock market news and in-depth analysis, including events moving stocks, click here
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on TwitterFacebook, Instagram, Flipboard, LinkedIn and YouTube