I hear a lot about movies that cost upwards of $100 million to make and only earn $35 million at the box office in return. This happens ALL THE TIME. Most recently, Prince of Persia had a $200 million operating budget, yet has 'only' earned $85 million so far--and doesn't stand to make much more with Inception around the corner. Did Buena Vista just lose $115 million? No, because when 'Prince' passes $100 million it will be probably be considered a minor success. I know DVD sales and video rentals count for a lot, but over $100 million?!
To complicate matters-don't production companies, distributors, and exhibitors collect only after the movie is released? And don't actors, writers, and directors earn bonuses at benchmarks like $25 million, $50, etc...? How much of the budget, then, is actually paid for and how much is just calculated to be taken out of the domestic box office receipts?
Our film industry is still one of the most bankable commodities the U.S. has, so I know I must be overlooking something. Maybe I'm confused as to what goes into the budget? Maybe it already accounts for expenses like promotion and advertising (usually about $20 million for a major studio release), star/director salaries ($10-20 million), and studio fees?? I'll start a different thread for that...
To complicate matters-don't production companies, distributors, and exhibitors collect only after the movie is released? And don't actors, writers, and directors earn bonuses at benchmarks like $25 million, $50, etc...? How much of the budget, then, is actually paid for and how much is just calculated to be taken out of the domestic box office receipts?
Our film industry is still one of the most bankable commodities the U.S. has, so I know I must be overlooking something. Maybe I'm confused as to what goes into the budget? Maybe it already accounts for expenses like promotion and advertising (usually about $20 million for a major studio release), star/director salaries ($10-20 million), and studio fees?? I'll start a different thread for that...
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"I want a film I watch to express either the joy of making cinema or the anguish of making cinema" -Francois Truffaut
"I want a film I watch to express either the joy of making cinema or the anguish of making cinema" -Francois Truffaut