Why Joker is Considered the Most Profitable Comic Movie, Despite Avengers: Endgame's Existence

Often, discussions about the profitability of comic book movies focus on the most well-known franchises like Marvel's Avengers: Endgame. However, the claim that Joker outperformed Avengers: Endgame in terms of profitability has raised debates among cinematic enthusiasts. In this article, we explore the metrics used to measure profitability, why Joker is considered more profitable, and the nuances behind the investment return on such high-budget productions.

Budget vs. Box Office

The profitability of a movie can be gauged by comparing its total box office gross to its production cost. This comparison often reveals insights into the efficiency of the investment and the performance of the film in capturing audience interest.

Avengers: Endgame ($2.796 billion gross, $356 million budget):

The profitability ratio, calculated as total gross divided by budget, is:

$2,796,000,000 / $356,000,000 7.85

Joker ($1.036 billion gross, $55-70 million budget):

Moderately averaging the budget between $55 and $70 million, the profitability ratio is:

$1,036,000,000 / $62.5 million 16.576

These figures suggest that Joker is significantly more profitable than Avengers: Endgame, nearly two times more profitable in terms of the profitability ratio.

Different Metrics

Profitability can be measured through different metrics, including total gross, total budget, and return on investment (ROI).

ROI is a crucial factor in assessing the efficiency of an investment. It measures how many dollars earned for each dollar invested. ROI is calculated using the following formula:

ROI Profit / Cost of Investment

In the case of Joker, the cost of making and promoting the film was approximately $65 million. The box office earnings, estimated to be around $957 million by the end of week 5, suggest half the gross earnings go to the studio, leading to:

$957,000,000 / 2 $478,500,000

Subtracting the cost of the film itself, the net profit is:

$478,500,000 - $65,000,000 $413,500,000

Therefore, the ROI for Joker is:

ROI $413,500,000 / $65,000,000 6.4x

For Avengers: Endgame, the budget was $365 million, and the first month box office gross was $2.617 billion:

$1.308 billion goes to the studio, so the net profit is:

$1,308,000,000 - $365,000,000 $943,500,000

The ROI for Avengers: Endgame is:

ROI $943,500,000 / $365,000,000 2.58x

Why the Debate Matters

The discrepancy in profitability ratios between these two films indicates that the term "profitable" can be misleading without context. While Joker has a higher return on investment and a higher overall profitability ratio, Avengers: Endgame still has a significantly higher net profit.

One reason Joker made such a substantial amount of money was its smaller week-to-week decline in international grosses, making it effective in sustaining its financial growth over time. This resilience in maintaining audience interest speaks to the film's success in the market.

Conclusion

The debate between the profitability of Joker and Avengers: Endgame highlights the complexity of measuring a film's success. While Joker may have a higher return on investment, Avengers: Endgame stands out for its overall financial performance and high net profit. Both films offer valuable insights into the dynamics of high-budget comic book movies and the various factors that contribute to their profitability.

When evaluating the success of a film, it is essential to consider multiple metrics and nuances to understand its true financial impact. Whether you use profitability ratios, ROI, or net profit, each measure provides a different perspective on a movie's financial performance.