Blumhouse CEO: We Thought M3GAN 2.0 Was Superman

Blumhouse president Jason Blum has candidly discussed M3GAN 2.0's disastrous opening, acknowledging several key missteps.

M3GAN 2.0 earned just $10.2 million domestically and $6.958 million internationally during its opening weekend, suggesting the first M3GAN film's remarkable $180 million global success in December 2022 may have been a unique phenomenon.

IGN's M3GAN 2.0 review scored the film 6/10, noting: "M3GAN 2.0 shifts from horror to sci-fi/action with uneven results, though M3GAN's wicked humor and killer dance moves remain the undeniable highlights."

So what caused M3GAN 2.0's dramatic underperformance? Blumhouse CEO Jason Blum shared his initial analysis on the latest episode of The Town with Matthew Belloni podcast.

"I've been processing this disappointment all weekend, reflecting deeply on these developments," Blum explained during the 20-minute conversation. "If Blumhouse is experiencing a downturn, I want to be the one telling that story rather than having others interpret it for us."

Blum revealed that ten weeks before release, tracking suggested M3GAN 2.0 would open at $45 million. "We genuinely believed this smaller production might surpass F1's box office numbers," he said. However, projections rapidly declined: eight weeks out dropped to $40 million, six weeks to $35 million, and four weeks to $30 million. "Since the original film opened at $32 million, we anticipated perhaps a 20% decrease, making $30 million seem reasonable," Blum noted, adding that international projections followed similar patterns.

He continued: "Five days before opening, projections plummeted from $30 million to $20 million. By Thursday, we were looking at $19-20 million, and I was completely despondent. Waking up Monday to a $10 million opening was devastating."

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Blum then delved into the specific factors behind M3GAN 2.0's poor opening weekend.

"We mistakenly treated M3GAN like Superman," he admitted. "We assumed we could transform anything about her - change genres, move her to summer release, alter her appearance, even turn her from villain to hero. We fundamentally overestimated how invested audiences actually were in her character."

"Our decision to switch genres backfired. Viewers weren't prepared for that shift - they simply wanted more of the M3GAN they already loved."

This refers to M3GAN 2.0's transition from psychological thriller-horror to action-comedy, a change that clearly didn't resonate with audiences.

"Secondly, we assumed she could succeed in summer blockbuster season," Blum continued. "We envisioned transforming this modest horror project into a major tentpole release."

This seasonal shift also proved unsuccessful.

"When you change genres, execution must be flawless," Blum emphasized. "While this M3GAN actually received a higher CinemaScore than the original, and those who saw it generally enjoyed it, critical reception was more mixed than the first film."

Blum also noted that director Gerard Johnstone had significantly less time to complete the sequel for its summer release compared to the original production schedule.

"We let our enthusiasm for M3GAN override our judgment, and ultimately, the project didn't connect with audiences," Blum concluded. "That's the reality of what happened."

The Best Horror Movie of 2023

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Looking forward, Blum stated he's not having an existential crisis about Blumhouse or the film industry overall, but confirmed the company is reevaluating its upcoming slate. He expressed concern that the current market may be oversaturated with horror content.

"We're accustomed to a market that comfortably supports 12-15 horror films annually, where moderate successes are common," he observed. "I believe that market dynamic has disappeared, at least temporarily. Whether it returns remains uncertain, but currently, the market appears unable to absorb much additional horror content."

Blumhouse's response involves focusing on creating more theatrical event films with higher production values to stand out in the crowded marketplace. He cited the upcoming Five Nights at Freddy's sequel as an example of this new approach.

"I'm not experiencing existential doubt," he reiterated. "However, we can't ignore market signals. We need to critically examine our slate - did we produce too many films this year? Are all our projects truly theatrical events? We're applying different criteria than we did a year ago. Continuing with our previous approach would indeed create an existential crisis, as I believe it would ultimately put us out of business."