James Dolan is planning to follow the yellow brick road to boost profits at the Las Vegas Sphere, The Washington Post has learned.
The state-of-the-art concert venue, with unparalleled video and tactile seating, has inked a deal with Warner Bros. Discovery to produce a one-of-a-kind immersive experience with its film adaptation of the 1939 classic “The Wizard of Oz,” sources familiar with the matter said.
But the process of converting the 102-minute film into the digitally enhanced, 80-minute sensory spectacle that is “The Sphere” won’t be cheap.
Sources say the company plans to spend $80 million to reboot the Oscar-winning film starring Judy Garland, which cost $2.7 million to make before its release in 1939, which works out to about $25 million when adjusted for inflation.
Sphere analysts said that while the $80 million production cost seems steep, the idea makes economic sense.
“They make more money from original content than from concerts,” the source said.
The Sphere is currently screening “Postcard from Earth,” a 55-minute film directed by Darren Aronofsky, which is being shown up to three times a day in the 20,000-seat arena, with the cheapest ticket selling for $114.
It’s not clear how much the Sphere will charge fans to watch the 85-year-old film “Oz” on what’s essentially a giant IMAX screen, albeit with a wicked witch flying around across an LED-covered ceiling.
Warner Bros. Discovery will receive about 5 percent of gross profits, one of the sources said.
Sphere did not respond to a request for comment, and Discovery did not respond to calls.
Dolan continues to seek out musicians for gigs, but he’s focused on film.
Rock legends The Eagles will have a residency at the Sphere from September through early January.
Analysts say the $2.3 billion Sphere has generated roughly $100 million in revenue since it opened in September.
Sphere’s shares have fallen 15% over the past five trading days, from $44.64 to $38.12.
Sphere has reportedly been in negotiations to acquire the rights to “The Wizard of Oz” since early June. Casino.org.
Doran plans to build additional spheres in countries such as South Korea and screen the film there.
