Next weekend, Twenty-First Century Fox (NASDAQ:FOXA) takes a try at box office glory with X-Men Days of Future Past. Can it outperform Captain America: The Winter Soldier, which so far ranks as 2014's top comic book movie?
Host Ellen Bowman puts this question to Fool analysts Nathan Alderman and Tim Beyers in this episode of 1-Up On Wall Street, The Motley Fool's web show in which we talk about the big-money names behind your favorite movies, toys, video games, comics, and more.
Nathan says Fox spent too much on X-Men: Days of Future Past. A minimum $250 million production budget means the film will have to put up unprecedented numbers for an X-Men movie. That's unlikely given Fox's strategy. Specifically, the studio is bringing all the X-Men together in one film in hopes that fans will show up to see a favorite character.
Walt Disney (NYSE:DIS) didn't take that chance, Nathan says, preferring instead to win over fans one character at a time. That way, Iron Man, Captain America, and Thor fans would be willing to see a team-up movie featuring characters they otherwise might not care about. The result? Marvel Studios has enjoyed accelerating grosses in the solo movies that followed the Avengers, including Captain America: The Winter Soldier.
Tim argues that X-Men: Days of Future Past benefits from a 14-year cinematic history dating back to the release of X-Men in 2000. That movie produced more than $296 million in worldwide grosses on a $75 million production budget, a financial win for Fox even without counting DVD sales.
Several of the characters in the follow-up movie, X-2: X-Men United, appear in X-Men: Days of Future Past, providing the sort of connective tissue that made Marvel's The Avengers the box office success it was. Mix in outstanding reviews and a month's worth of weaker box office competition and you've all the ingredients required to top Captain America: The Winter Soldier at the box office.
X-Men: Days of Future Past also kicks off a whole new series of films that will add variety and heft to a franchise that's due for at least two more team-up movies and potential solo spinoffs. Fox investors stand to benefit greatly if this phase starts out well, Tim argues.
Who's right? Click the video to watch as Ellen puts Nathan and Tim on the spot, and then leave a comment below tell us which movie you think will top the charts and why. You can also follow us on Twitter for more segments and regular geek news updates!
A team-up you can trust ... always
In the comics, teams come together to face extinction-level events, In the stock market, betting on a team of lasting companies whose competitive advantages are so durable they feel like superpowers can make you rich. Which to choose from a market of more than 5,000 publicly traded stocks? Our analysts name a handful of their best picks in a special report that can you get right now, FREE. Click here for your copy and learn how to get started investing in life-changing stocks.
Neither Ellen Bowman nor Nathan Alderman owned shares in any of the companies mentioned in this article at the time of publication. Tim Beyers owned shares of Walt Disney. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.