Amazons LotR..$500 M for 2 seasons?

From https://www.cbr.com/lord-of-the-rings-amazon-series-500-million/
 
Amazon committed to a multi-season Lord of the Rings TV series for their Prime platform late last year, and it appears the streaming (among other things) giant is willing to sink a significant sum of money into the endeavor. Like, a significant sum.
 
According to an internal study performed by Reuters, the Lord of the Rings TV series could end up costing the electronic commerce behemoth in the neighborhood of $500 million — or more — for the first two seasons alone. While the projection appears to be quite staggering, half of the total, $250 million, was spent on acquiring the rights to make the series in the first place, with the remainder of the projection being attributed to marketing and production costs.
 
The study performed by Reuters analyzed the metrics for 19 Prime Original series using Amazon’s internal documents, which detailed the cost, the viewership and the number of new Prime subscribers drawn in by each series. Amazon’s Prime Originals have reportedly accounted for nearly 25% of all new Prime subscriptions from late 2014 through early 2017. Amazon utilizes a metric known as “first stream” to evaluate the success, or failure, of a Prime Original. The metric uses the production and marketing costs of a Prime Original and divides that total by the number of new subscribers who streamed that specific Prime Original as their first series. The lower the number, the better the rating.
 
The first season of the Prime Original series The Grand Tour drew in over 1.5 million new subscribers, scoring the best rating at $49 per subscriber. Comparing that total with the cost of an Amazon Prime subscription at $99, The Grand Tour is providing some serious bang for its buck.
 
The projected marketing and production costs on the first two seasons of the Lord of the Rings prequel series are set to be nearly three times what Amazon spent on the Prime Original series The Man in the High Castle, which has a first stream rating of $63 per subscriber. The Lord of the Rings series will need to draw in nearly three times as many new subscribers to net the same yield.
 
The prequel series remains in the very early stages of its development with no casting information or production details known, though there is reportedly potential for spinoff shows. Additional details will be released as the series enters production.
 
(via IGN)

paw comments:  I'm amazed by this.  First off, I don't understand why anyone would think a tv series is a good idea.  There's already been a well-received film trilogy, so I don't understand why folks just don't watch that.

Secondly the amount of money invovled is redonkulous.  A studio could make a host of films for that kind of money instead of a single tv series that I would guess most fans have already seen.

That is insane.

Jeff Bezos could probably look under his sofa cushions to pay for the $500 mil. Like the article said  half of the money was just buying the rights. So it is $250 mil for making the 2 seasons. Merchandising rights alone will make back the money plus added subscriptions. LOTR may not be as popular now but it still is very popular and with an amazing show it could really boost Prime subscriptions and merchandising. Shirts at Spencers, figures at Wal Mart, games at toy stoes, ect. All that stuff is already out there for LOTR. Think Game of Thrones but a more popular brand. Marvel makes more from merchandising then the movies. Plus the more Prime subscribers they get the more people ordering off of Amazon since no worries about shipping.

As far as the show I am excited. It is a huge world that could still have a lot of storytelling. With the money being spent it leads me to think they are all in and not going to half ass it. It may very well still suck but clearly there will be some real effort behind it. I have been wanting to get Prime again anyways and with news like this it makes me lean more in that direction.

Hopefully there will be less of the likes of legolas surfing on shields and flying around like spiderman

Soup and Beer - 

Hopefully there will be less of the likes of legolas surfing on shields and flying around like spiderman


Seconded!