There's no question that Amazon (NASDAQ: AMZN) is putting an enormous amount of effort and resources into their upcoming "Lord of the Rings" television show. The platform is arguably counting on the new show to function as their "Game of Thrones," bringing in flocks of new Amazon Prime users.
In a recent example of the company's commitment to the project, Amazon announced that the show will be the most expensive television series ever made with a budget of $465 million.
Back in 2018, early reports showed the series costing $500 million for two seasons, rather than the nearly $500 million per season that it currently sits at.
To get a better idea of just how much money Amazon is throwing at this show, consider that the original "Lord of the Rings" trilogy cost $280 million, as well as the fact that during the final season of "Game of Thrones," the average episode cost $15 million, adding up to $90 million for a six-episode season. While Amazon hasn't provided a hard number on episode count, there will be at least six episodes in the first season.
The budget was reported by the New Zealand government in accordance with their freedom of information laws. Amazon says they intend to film five seasons in the country, the same location as the original filming location for the films.
"This is fantastic, it really is ... this will be the largest television series ever made," New Zealand minister for economic development and tourism told Morning Report.
Still, the whopping price tag has many people wondering: why so much?
First of all, Amazon execs have stated that the company is "pretty confident" that the show will earn back its budget through viewership.
"This is a full season of a huge world-building show. The number is a sexy headline or a crazy headline that's fun to click on, but [the budget] is really building the infrastructure of what will sustain the whole series," Amazon Studios chief Jennifer Salke told The Hollywood Reporter.
Salke also implied that the shows high price could be the result of a "crazy" market, leading to high-stakes "bidding situations."
Secondly, it's important to note that the first-season budget goes towards much more than just creating the episodes. The rights to Tolkien's work costs an estimated $250 million. Funds will also more than likely go towards sets, costumes, props, and other types of infrastructure that will be used throughout the life of the show.
Finally, Amazon will also be receiving a considerable tax rebate from New Zealand thanks to the high-priced show using the country as their filming location. The show is considered somewhat controversial in New Zealand, with the treasury reportedly calling the project a "significant financial risk," according to Stuff.
Supporters, meanwhile, argue that the show will bring in tourism from fans at rates high enough to offset the tax benefits.