According to a new report, MGM’s decision to delay No Time to Die will cost the studio $1 million a month in interest.
When we think about the abundance of movie delays in the wake of the pandemic, we don’t tend to think about the financial cost. After all, aren’t these films being delayed so they can make more money?
Well, yes, however, there is a financial repercussion to delaying a film and a new report from THR has laid this out in regards to MGM’s No Time to Die, claiming that every month the film is delayed, it cost them $1 million in interest payments.
The report quotes Hal Vogel, CEO of Vogel Capital Research, who says that: “MGM is suffering. Every major distributor at this point has a pile of unreleased expensive movies. The pile grows larger by the day. These films are inventory. They are sitting there with no return on their investment. Even with low interest rates, the interest costs are piling up. So going the streaming route is not that crazy. You’ve spent the money. And you’re not getting it back anytime soon.”
SEE ALSO: MGM explored $600 million direct-to-streaming deal for No Time To Die
Many were surprised to hear that MGM was shopping the film to streaming services but with numbers like this, it’s not that surprising. After all, we have no idea when things will be in a good enough state for studios to decided it’s okay to release their major blockbusters in cinemas.
Bond has left active service and is enjoying a tranquil life in Jamaica. His peace is short-lived when his old friend Felix Leiter from the CIA turns up asking for help. The mission to rescue a kidnapped scientist turns out to be far more treacherous than expected, leading Bond onto the trail of a mysterious villain armed with dangerous new technology.
No Time To Die stars Daniel Craig (James Bond), Ralph Fiennes (M), Naomie Harris (Moneypenny), Rory Kinnear (Tanner), Léa Seydoux (Madeleine Swann), Ben Whishaw (Q), Jeffrey Wright (Felix Leiter) and Christoph Waltz (Blofeld), while new additions include Rami Malek (Bohemian Rhapsody), Ana de Armas (Knives Out), Lashana Lynch (Captain Marvel), Billy Magnussen (Velvet Buzzsaw), Dali Benssalah (A Faithful Man) and David Dencik (Top of the Lake).
