Netflix swoops in for Rian Johnson’s Knives Out sequels starring Daniel Craig. Claire Folger
Much like the twists and turns of a great whodunnit, Wednesday’s Hollywood bombshell was wholly unexpected. Details are still emerging, but Netflix has reportedly acquired the rights to make two sequels to Rian Johnson’s hit 2019 murder mystery Knives Out, starring Daniel Craig, in a $450 million deal. It is one of the largest acquisitions in Hollywood history and a development ripe with subplots to explore. Shall we do our best Benoit Blanc impression and investigate?
Knives Out, the hit 2019 whodunnit from Star Wars: The Last Jedi director Rian Johnson, is getting two sequels, and they’re now Netflix exclusives. According to Variety, Netflix bought the. Netflix is said to have acquired the rights to the “Knives Out” sequels following the massive success of the 2019 murder mystery movie. The streaming service has shelled out millions to buy the.
The original Knives Out was made for $40 million and earned $311 million at the global box office while also scoring an Academy Award nomination for its screenplay. Production company MRC partnered with Lionsgate on its theatrical distribution, but apparently the two sides only reached a single picture deal. While it was assumed that Lionsgate would distribute the remainder of the franchise, Johnson and partner Ram Bergman (who own and license the Knives Out IP on a picture by picture basis) held a quiet bidding war that Netflix has now won. Production on Knives Out 2 will begin in June.
“There’s certainly a ‘one that got away’ vibe to the news,” Shawn Robbins, chief analyst at Box Office Pro, told Observer. Johnson and Bergman have been given complete creative control by Netflix with no budgetary minimums. While it’s a win for the creative duo, it’s “an unfortunate loss for theaters or anyone hoping to see the re-emergence of an old school, live action cinematic franchise without superheroes or CGI,” Robbins observed.
But the film industry of today is far different than the landscape that existed in 2019 when Knives Out first hit theaters. That same year, Netflix was trying and failing to come to terms with movie theaters on a wide release for Martin Scorsese’s The Irishman. The ultimate sticking point? Neither side was willing to compromise on the traditional 60-90 day exclusive theatrical window. Today, partially thanks to COVID, that long window no longer exists in its previous form. Universal, Paramount, Warner Bros. and Disney have all experimented with shortened windows, hybrid releases, and straight-to-streaming film debuts.
“I would definitely not rule out the possibility Netflix could seek a theatrical release plan with exhibitors once the pandemic dust settles in the years ahead and both sides come to more compromising terms,” Robbins said. “That would hypothetically overrule some of the disappointment among film and cinema fans because I think it’s a series of sequels with A-list cast and crew that many people would be willing to venture out to theaters for even with a quick streaming availability.”
Box office results are a strong predictor of future value. Most SVOD services use ticket sales and Nielsen ratings, in addition to their own ratings, as strategic data points when deal-making such as this. Netflix clearly feels as if the expenditure will lead to long-tail engagement, though one might also argue that the streamer spent $450 million to prevent movie theaters from earning $500 million. But that’s an oversimplification.
Did Netflix overpay? Probably. Does this move indicate that Netflix, whose library is shrinking and whose coffers are not flush with marquee IP, may be desperate to build franchises before studios that have decades of development experience reach greater streaming scale? Most likely. Does it set the stage for Netflix to pay additional gobs of money to get Knives Out, currently streaming on Amazon Prime Video, on its own service before the sequels are released? Definitely.
But it’s a move that keeps the Knives Out sequels away from the competition (Amazon and Apple were also bidding) without dramatically altering the financial future of a company valued at nearly $235 billion. It also puts the streamer in business with Johnson, one of the most creative voices in Hollywood, who doesn’t have an overall deal at any one studio while providing Netflix with a high-profile new film series with a built-in fan base.
“Overall, I still think it’s hard to argue against the need for theatrically exclusive releases when it comes to Hollywood’s most expensive and biggest earners, but this is now an example of those mid-range properties with built-in value and contained costs that may try to aim for experimental releases in the post-COVID-19 world,” Robbins said.
The film industry is all about repetitive cash flow i.e. sequels; streaming comes down to limiting churn to guarantee recurring revenue. Regardless of medium, the idea of giving audiences more of what they already like is valuable. It’s a reason to stay subscribed. Netflix is selling you expectation.
“All major studios use sequels to mitigate risk,” David Offenberg, Associate Professor of Entertainment Finance in LMU’s College of Business Administration, told Observer. “This is another piece of evidence that Netflix is now behaving like a mature, modern studio.”
Knives Out Netflix Movie Review
Netflix has landed a $450 million deal to make two sequels to Rian Johnson's murder-mystery Knives Out. The Star Wars: The Last Jedi and Looper director will write and direct both. Daniel Craig is also on board, reprising his role as the detective Benoit Blanc.
Knives Out, a modern take on the locked-room mystery, came out in November 2019. Thanks to its all-star cast and fun, twisty story, it quickly became a surprise box office hit. Lionsgate announced a sequel in February 2020, by which time the film had made more than $300 million. Johnson confirmed that Craig would be returning, but none of the other cast members from the original would appear.
Knives Out Netflix Movie Release
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Despite it being one of the biggest streaming deals ever, Netflix has kept their Knives Out purchase secret until now. Apple and Amazon were also in the running to buy the rights, but Netflix outbid both of them. As part of the enormous deal, Johnson and longtime partner Ram Bergman will produce the new films. Though MRC Entertainment owns the first Knives Out film, Johnson and Bergman wisely held on to the sequel rights.
Johnson has already written both sequels, and the first will begin shooting in Greece on June 28. Casting is ongoing, leaving Craig the only confirmed appearance so far. The first film, however, managed to secure an amazing ensemble with a budget of just $40 million. Given that, we'll likely see some big-name actors attached to the project in the coming months.
Knives Out Netflix Movie Cast
With this newest development, it's clear Johnson is busier than ever. His planned Star Wars trilogy is looking unlikely, but now he has a completely different trilogy to work with. And apart from Knives Out, he's also creating a mystery series for Peacock called Poker Face. Craig, meanwhile, is taking on a new role (that of Benoit Blanc) following his retirement from the James Bond character.
A media executive told Variety that they could see Craig getting large pay raises across each Knives Out film. However, even with Netflix's massive content budget, $450 million is still a lot for just two movies. Netflix's biggest film, the upcoming Russo Brothers thriller The Gray Man, cost them 'only' $200 million to produce. Variety's source thinks Netflix is spending millions on marketing, to make Knives Out one of their many known IPs. With that in mind, it's also very possible that the streaming service is already planning for a Knives Out 4.
Netflix will release two Knives Out sequels on an unspecified future date. It is currently unknown if the two films will have a theatrical release as well.
MORE: Star Wars: Rian Johnson's Trilogy Can Benefit From Elements Of 'The Last Jedi'
Source: Variety, Deadline
Knives Out Netflix Movie Rotten Tomatoes