In 2004, Anne Hathaway could not take a role in The Phantom of the Opera, because the production schedule of the film overlapped with The Princess Diaries 2: Royal Engagement, which she was contractually obligated to make. Disney began production on The Princess Diaries 2 in early 2004, and it was released in August of that year. The film opened to negative reviews, but commissioned $95.1-million against a $40-million budget.