It turns out there’s a great economic reason why Amazon hasn’t canceled The Lord of the Rings: The Rings of Power, and why the show may continue.
A report by Lesley Goldberg in The Ankler newsletter recently revealed only 45-35% of viewers who started The Rings of Power season 2 were able to finish it. The newsletter also cites high productions costs. Anonymous Amazon insiders revealed Amazon creative head Peter Friedlander is feeling the pressure of the show and how Amazon may have overpaid for the rights. Amazon reportedly paid a whopping $250 million for the rights to J.R.R. Tolkien's fantasy masterpiece, which had already generated billions of dollars and numerous Oscars with the Peter Jackson movies.
The report also revealed the original plan was for the show to run at least five seasons, and as such, Amazon signed a deal with the Tolkien estate for a $20 million per-season “kill fee.” Should they axe the show now, Amazon would thus owe the estate at least $40 million for not making season 4 and season 5. Had they canceled the show after season 2's reduced viewership, Amazon could have shelled out even more to the estate.
The Rings of Power was promoted heavily as a key prequel to the saga, taking place thousands of years before the films and showing how Sauron crafted the Rings and the war for Middle-earth.
While the show’s two seasons have their fans, they also have more than their share of detractors. There are complaints on the pacing, the characters, the story and more, even as Amazon has poured a reported $1 billion into the entire production and promotion.
The Rings of Power season 3 is in production, with concerns that it could be the last for the show. It’s backed up by how Amazon already canceled its other fantasy epic, The Wheel of Time, after three seasons, reportedly due to low viewership and its high budget.
The show has been reportedly reducing costs for season 3, such as moving production from New Zealand for tax incentives, but $40 million is still a sizable chunk of change. The newsletter cites other sources claiming that showrunners are upset about Amazon devoting so much money and time to The Rings of Power over other series (such as Wheel of Time). That puts more pressure on ending the show, but that "kill fee" is a block to it.
The producers seem to hope that season 3 can bounce back creatively as it moves more into the big war for Middle-Earth and the lower budget helping. It’s still a bizarre situation in how Amazon would have to pay if they were to cancel Rings of Power, so this strange deal. It may also be the reason the series continues for at least two more seasons.
The first two seasons of The Lord of the Rings: The Rings of Power are streaming on Prime Video. Stay tuned for more news about The Rings of Power season 3.