Question About Grosses

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Hello,

I have a question on my mind about box office figures. I thought you might help me with that.

When a movie makes, lets say 200 million dollars in domestic box office, does that mean that all that money goes to the studio?

I mean, T3 has a budget of around $170 million. When it's total gross reaches to $170 million, does that mean it levels the production costs? Or do we have to consider that some portion of this goes to the theaters, taxes etc. ?

Thank you



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I believe the producer pays for everything before production begins. If the filming happens to go over budget, the producer then borrows money from the studio, hoping that the film gets a big gross. However, if anyone associated with the film has points in the merchandising portion, they get paid after the movie is released, and further profit. But, I think the majority of the gross does indeed go to the studio/producer.
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Originally Posted by esrefb
I mean, T3 has a budget of around $170 million. When it's total gross reaches to $170 million, does that mean it levels the production costs? Or do we have to consider that some portion of this goes to the theaters, taxes etc. ?
Yes. You have to consider that some of that money will go to theaters, pay for distribution, pay for marketing costs, taxes, and possibly percentage points for leading actors or the director (not usually done).

In general, a movie needs to make twice its production budget to actually break even. Many movies nowadays don't make this much in their U.S. theatrical release, and are now dependent on profits from their DVD sales, and foreign theatrical release.
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