OVERLAY REPORT

The film *Labyrinth* (1986) is a classic example of a "box office bomb" that transformed into a massive financial success and cultural icon through home media and long-term licensing. ### 1. The Budget The production budget for *Labyrinth* was **$25 million**. At the time, this was considered a very high budget for a film of its kind, largely due to the cutting-edge puppetry by Jim Henson’s Creature Shop, expansive practical sets (like the 40-foot wide "Shaft of Hands"), and the salary for superstar David Bowie. ### 2. Box Office Breakdown (1986) The film was a major disappointment during its initial theatrical run, particularly in the United States. It opened at **#8** and was quickly overshadowed by summer blockbusters like *Top Gun*, *The Karate Kid Part II*, and *Ferris Bueller's Day Off*. * **Domestic (North America):** ~$12.7 million – $12.9 million. * **International:** While it underperformed in the U.S., it was more successful in the United Kingdom and other overseas markets. * **Worldwide Total:** Reported at **over $34 million** by various sources (including *The New York Times*). **Comparison to Budget:** In its initial run, the film barely recouped its production costs globally and failed to cover its significant marketing expenses. In the U.S., it earned only about **half of its budget**, leading Jim Henson to feel deeply discouraged—*Labyrinth* was the final feature film he directed before his death in 1990. ### 3. Post-Theatrical Breakdown (The "Second Life") Despite its failure in theaters, *Labyrinth* became one of the most successful "cult classics" in history due to its performance after 1986. #### Home Video and Television * **VHS/DVD/Blu-ray:** The film's release coincided with the rise of home video. It became a "blockbuster rental" and a staple of 1990s home libraries. Brian Henson (Jim’s son) has noted that the film "made more money every year than the year it was released" for a long period following its theatrical exit. * **Television Licensing:** Frequent airings on cable networks (like Disney Channel and HBO) throughout the late '80s and '90s solidified its status and generated steady licensing revenue for years. #### Soundtrack and Merchandising * **Soundtrack:** The soundtrack, featuring five original songs by David Bowie, was a major pillar of its post-theatrical success. It reached #68 on the *Billboard 200* and #38 in the UK. Since Bowie's death in 2016, the soundtrack has seen renewed sales spikes, at one point becoming his third-best-selling album on iTunes in the UK. * **Merchandising & Publishing:** The "Labyrinth" brand remains highly active. Successes include: * **Comics/Books:** Manga sequels like *Return to Labyrinth* and prequel comics from Archaia. * **Re-releases:** Frequent theatrical re-releases (e.g., for its 30th and 35th anniversaries) continue to pull in millions. A 2018 limited re-release alone grossed over $1.4 million. * **New Media:** Board games, clothing lines, and collectible figures continue to be produced, with Shout! Studios recently acquiring a worldwide distribution agreement in 2024 to manage its ongoing media rights. ### Summary Comparison | Category | Amount | Notes | | :--- | :--- | :--- | | **Production Budget** | **$25 million** | Expensive for 1986. | | **Initial US Gross** | **$12.7 million** | Considered a major failure at the time. | | **Worldwide Gross** | **$34+ million** | Saved partially by UK/International fans. | | **Lifetime Revenue** | **Undisclosed (Est. 10x budget)** | Likely hundreds of millions when accounting for 35+ years of video sales, TV rights, and merchandise. | Ultimately, while *Labyrinth* failed to make a profit in 1986, it has since become a highly profitable "evergreen" property for The Jim Henson Company and its distributors.