Blumhouse CEO: Why M3GAN 2.0 Underperformed

Blumhouse head Jason Blum has addressed the disappointing debut of M3GAN 2.0, acknowledging several missteps in its release strategy.

During its opening weekend, M3GAN 2.0 earned $10.2 million domestically and only $6.958 million internationally. This performance suggests that the original M3GAN film, released in December 2022, was a unique success, ultimately grossing $180 million worldwide.

IGN’s M3GAN 2.0 review awarded it a 6/10 score. Our review stated: “M3GAN 2.0 trades horror for sci-fi and action with mixed outcomes. Nevertheless, M3GAN’s outrageous humor and dynamic fighting skills keep her firmly in the spotlight.”

Why did M3GAN 2.0 perform so poorly? Blumhouse Productions CEO Jason Blum shared his initial thoughts on the latest episode of The Town with Matthew Belloni podcast.

“It’s been a painful weekend, and I've been overanalyzing everything,” Blum admitted during the 20-minute conversation. “If Blumhouse is in a slump, I want to be the one to tell that story. I don't want others shaping that narrative.”

Blum revealed that 10 weeks before the release, tracking indicated a $45 million opening for M3GAN 2.0. "We were seriously discussing the possibility of this small film outperforming F1.” However, projections quickly declined. With eight weeks to go, the forecast dropped to $40 million, then $35 million at six weeks, and $30 million at four weeks. “The first film opened with $32 million,” Blum noted. “We anticipated a roughly 20% drop from the original, so $30 million seemed reasonable. International projections followed a similar pattern.”

He continued: “Five days before the premiere, the forecast fell from $30 million to $20 million. That was Monday, and I was really concerned. By Thursday, we were looking at $20 million, maybe $19 million, and I felt completely defeated. Then Monday morning we woke up to a $10 million opening.”

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Blum then delved into the specifics of M3GAN 2.0's opening weekend performance.

“We all thought M3GAN was like Superman,” he remarked. “We believed we could do anything with her character—change genres, move the release to summer, alter her appearance, or even transform her from villain to hero. We completely overestimated how deeply audiences were actually connected to her.

“We decided to switch genres. The audience wasn't prepared for that shift. People simply wanted more of the original M3GAN.”

This refers to M3GAN 2.0 shifting away from the thriller-horror tone of the first film toward action-comedy. This approach clearly didn't resonate.

“Secondly, we assumed she could succeed with a summer release,” Blum added. “We envisioned transforming a modest horror project into a major tentpole film."

This change in release timing also proved ineffective.

“When you switch genres, the execution must be flawless," Blum explained. "This M3GAN actually received a higher CinemaScore than the previous one. Those who did see it generally enjoyed it, though critical reception was more mixed, slightly weaker than the first film.”

Blum also noted that the tighter production schedule for the sequel, which director Gerard Johnstone had to meet for the summer release, compared to the original, was a contributing factor.

“We got overly enthusiastic about M3GAN's potential, and unfortunately, it didn't connect with audiences,” Blum concluded. “That's essentially what happened.”

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So what’s next for Blumhouse? Blum stated that he isn’t experiencing an existential crisis about the company or the film industry, but confirmed they are reassessing their upcoming releases. He also expressed his view that the current market is oversaturated with horror content.

“We’re accustomed to a market that can support 12 to 15 horror movies, where you see consistent, moderate successes,” he said. “I believe that era is over, at least for now. It might return, but currently, the market definitely can’t handle much more horror than what’s already available.”

Another strategy is to focus on making Blumhouse films into must-see theatrical events, which may involve increasing production budgets. Blum cited the upcoming Five Nights at Freddy’s sequel as an example of this approach.

“I’m not having an existential crisis about it,” he reiterated. “But you can’t ignore the signals either. We have to ask ourselves if we released too many films this year, and whether each one truly qualifies as a theatrical event. That’s a different standard than we applied a year ago. If we kept using the old criteria, then it would be a real crisis, because I think we’d be out of business.”