Disney has disclosed that the cost of the 2022 superhero movie Doctor Strange in the Multiverse of Madness stood at a staggering $414.9 million (£331.9 million), making it one of the most expensive films in the Marvel Cinematic Universe (MCU) to date. This figure surpasses that of the team-up film Avengers: Age of Ultron, indicating the substantial investment made in the Doctor Strange sequel. Despite costing 6.4% more than Avengers: Age of Ultron, Multiverse of Madness generated three times more profit based on box office returns for both films.
The sequel to 2016’s Doctor Strange features Benedict Cumberbatch reprising his role as the sorcerer, who is on a mission to stop Elizabeth Olsen’s Scarlet Witch from capturing a young girl with the ability to travel across dimensions. This movie was a flagship film for phase four of the MCU and introduced the concept of the multiverse, where characters from different studios collaborate. Notably, Disney included the Mister Fantastic character, played by John Krasinski, and Patrick Stewart’s Professor X from the X-Men and Fantastic Four franchises, marking a significant crossover event.
Filming for Multiverse of Madness took place at Longcross Studios in the UK, which has been a location for various Disney films in the past. Additionally, the historic British Museum and a park in south-west England served as filming locations for key scenes in the movie. The UK government’s Audio-Visual Expenditure Credit incentivizes studios to film in the country by providing a cash reimbursement of up to 25.5% of expenses incurred during production. This tax credit scheme influenced creative decisions, such as featuring British elements like a red phone box and including British actors in the cast.
To qualify for the reimbursement, a portion of the film’s core production costs must be spent in the UK, leading studios to set up separate companies for each production made in the country. Financial statements from these companies provide insights into the costs associated with making the films. In the case of Multiverse of Madness, Disney received a reimbursement of $64.3 million (£51.4 million), reducing their net spending on the movie to $350.6 million. Despite being the highest-grossing Marvel film for Disney since the pandemic began, Multiverse of Madness fell short of the billion-dollar mark but still generated a profit of $127.3 million at the box office.
Following the release of Multiverse of Madness, Disney CEO Bob Iger expressed concerns over escalating production costs in the entertainment industry. Amidst efforts to reduce costs, Disney reported a 1.2% increase in total revenues for the first quarter of 2023, with the media and content division playing a significant role. However, the division’s operating income was lower compared to other segments of the company, partly due to the high volume of productions. In response, Iger announced plans to focus on quality over quantity, intending to decrease the number of TV series and films produced annually, particularly within the MCU franchise.
As Disney looks to streamline its content production and reduce expenses, the future of the MCU, including a potential third Doctor Strange film, remains uncertain. The substantial cost and profit margins of Multiverse of Madness indicate the challenges and complexities involved in creating blockbuster films in today’s competitive landscape. By prioritizing quality and strategic decision-making, Disney aims to navigate the evolving entertainment industry while maintaining its position as a leading provider of cinematic experiences for audiences worldwide.
