Disney has revealed that it spent $49.2 million (£38.3 million) on pre-production of The Acolyte, its upcoming Star Wars streaming series which is set before the events of the main movies.
It is a staggering $5.5 million (£4.3 million) more than Disney spent on pre-production of 2016’s big screen Star Wars blockbuster Rogue One.
Last year’s hit Star Wars streaming series Andor spent 38% more on pre-production but it was made at the height of the pandemic so had to invest heavily in COVID protocols and needed its production budget to be adjusted accordingly.
Even pre-production costs of the main instalments in the Star Wars saga weren’t far off The Acolyte. Disney only spent 17% more on pre-production of The Last Jedi in 2017 and that was a sure-fire hit thanks to an A List cast playing classic characters headlined by Mark Hamill in the iconic role of Luke Skywalker.
In contrast, little is known about The Acolyte which is set to land on the Disney+ streaming platform next year. The cast of the eight-episode series includes Lee Jung-jae from Squid Game, Manny Jacinto from The Good Place and Dafne Keen from Logan.
Perhaps the biggest name amongst its ranks only came to light a few days ago when it was revealed that Keanu Reeves will have a cameo in the show. He joins Matrix co-star Carrie Ann Moss who is reportedly playing a Jedi when the warriors were at the peak of their power. In a recent podcast interview with Entertainment Weekly, Showrunner Leslye Headland revealed that The Acolyte takes place around 100 years before the events of the first Star Wars prequel, Star Wars: The Phantom Menace.
This time period immediately sets it apart from the bulk of Star Wars stories such as the wildly-successful streaming series, The Mandalorian. While they typically take place against a background of widespread galactic conflict, there’s peace throughout the galaxy in The Acolyte. It is set to be Star Wars without the wars which makes its blockbuster budget an even bigger gamble, especially at a time when Disney is desperately trying to cut costs following a series of costly box office disappointments.
In February, Disney’s chief executive Bob Iger told investors that the studio needs to “reduce costs on everything that we make because, while we’re extremely proud of what’s on the screen, it’s gotten to a point where it’s extraordinarily expensive.”
A total of 7,000 job cuts and $5.5 billion of cost-savings followed but even that wasn’t enough. Just a few days ago, Iger told CNBC that Disney is slowing down when it comes to making movies and TV series for its Marvel and Star Wars franchises. “You pull back not just to focus, but also as part of our cost containment initiative. Spending less on what we make, and making less.”
Budgets of television shows are usually a closely-guarded secret as studios tend to absorb the cost of individual programmes in their overall expenses. However, the big exceptions are ones which are filmed in the United Kingdom, like The Acolyte.
Principal photography began in October 2022 at Shinfield Studios just outside London where The Acolyte was reportedly filmed in front of the same StageCraft LED screens that have been used to such great effect in The Mandalorian. The location shines a spotlight on the spending.
Shows made in the UK benefit from the Television Tax Relief scheme which allows studios to claim a cash reimbursement of up to 25% of the money they spend in the country.
At least 10% of the core costs of the production need to relate to activities in the UK and studios set up a separate Television Production Company (TPC) there for each picture.
These TPCs have to file publicly-available financial statements showing everything from the headcount and salaries to the total cost of the production and the amount of cash they have got back.
The UK government’s regulations state that each TPC must be “responsible for pre-production, principal photography and post-production of the television programme; and for delivery of the completed programme.” Accordingly, there is no doubt that their financial statements show all of the costs of each picture. It isn’t even possible for studios to hide costs in other companies as the law also states that “there can only be one TPC in relation to a programme.”
The companies usually have code names so that they don’t raise attention with fans when filing for permits to shoot off-site. The Acolyte is made by Blue Stockings (UK) limited, a subsidiary of Star Wars creator Lucasfilm, which was bought by Disney for $4 billion in 2012.
The company shares its name with The Blue Stockings Society, a mid-18th century informal women’s social and educational movement from England which emphasised education and mutual cooperation. It is perhaps a clue as to the gender of many of the Jedi in The Acolyte but there is no doubt about the other secrets disclosed in documents filed by the company on Friday.
They reveal that The Acolyte’s spending “was forecasted to be in line with the production budget.” A key condition of getting the cash reimbursement is that the production must spend at least $1.3 million (£1 million) per broadcast hour. Remarkably, The Acolyte has already spent nearly five times that amount without even including filming and post-production.
Over the 18 months to September 24, 2022 the company qualified for a cash reimbursement of $7.6 million (£5.9 million) thanks to its blockbuster spending. It paid a total of $5.9 million (£4.6 million) to 62 production staff which doesn’t even include the freelancers who make up the majority of the crew on a film shoot.
The reimbursement reduced The Acolyte’s net spending which is just what was needed.
Unlike theatrical releases, which share ticket sales between studios and exhibitors, Disney+ subscribers pay a single fee which grants them access to all of its new content throughout the year. This makes it impossible to determine how much revenue is generated by each streaming show.
If they had each been screened at the theater, viewers would have had to pay separately to watch them all which is another reason why Iger has signalled a shift towards releasing more new content theatrically rather than streaming it. Time will tell how much of a disturbance in the force this causes for The Acolyte.