The Hollywood Reporter did an article on the film;
The movie likely will end up with losses of more than $75 million, sources say, and Universal Pictures will be on the hook for at least $10 million.
The studio funded about 25 percent of the film's $150 million production budget, the rest coming in equal parts from Legendary Entertainment, China Film Group and Le Vision Pictures. But Universal also covered Wall's global marketing expenses, conservatively estimated at $80 million-plus. The film earned $171 million in China (a disappointment) and is expected to top out at about $320 million globally. That's way less than investors had anticipated for the biggest-ever U.S.-China co-production. "The fusion of the No. 1 and No. 2 movie markets in the world will eventually happen, but it is a misfire, domestically speaking," says box-office analyst Jeff Bock. Adds one Hollywood executive who has dealt extensively with China, "There's no question but that it's a failure."
The good news for Universal is that its share of this failure will be relatively modest. The studio gets to collect a roughly 10 percent distribution fee from all theatrical revenue (between 40 percent and 50 percent of the total box office), and box-office rentals likely will recoup much, if not all, of its marketing outlay before other investors dip into whatever money is left to cut into production costs. The four partners will split any further theatrical income equally.
If the movie generates hoped-for ancillary revenue (including $20 million from domestic home entertainment and as much as $40 million from international home entertainment, with $25 million to $30 million from TV — admittedly, a best-case scenario), that will further stanch the red ink.
Regarding coproduction in China;
To date, the studios have viewed officially sanctioned China co-productions with skepticism, even though they offer vastly greater financial benefits, enabling backers to pocket 43 percent of ticket-sale revenue out of the country, far more than non-co-productions allow. Past tentpoles, such as Paramount's Transformers: Age of Extinction and Disney's Iron Man 3, were briefly planned as co-prods before their producers realized the depth of Chinese involvement and script control.
So the money is appealing to American companies, but not handing over so much control to the Chinese side of the deal.
Instead, studios have focused on strategic partnerships to boost their returns. Sony struck a financing deal with Dalian Wanda Group, and Paramount recently closed a purported $1 billion pact with Shanghai Film Group and Huahua Media Group.
And appealing to regional markets, rather than going for a global hitstill has it's place;
Developing fully Chinese content with local joint ventures also is seen as a safer bet than co-productions. Warner Bros. is at work on a slate of a dozen Chinese-language films for its Flagship Entertainment banner, a partnership with Beijing-based China Media Capital.
But they're not giving up;
Regardless of Wall's failure, one analyst predicts Hollywood will be back for more. "The market opportunities are too substantial to ignore," says Eric Handler of MKM Partners. "The problem with The Great Wall in the U.S. was poor reviews. At some point, someone will find the right formula."