not only that, they only get a portion of the box office anyways, %50 if i remember correctly, so break even is usually going to be more than double the film cost to include the theaters' share.
Like u/ovitz said. Recovering your manufacturing costs is just one part. You have marketing, legal, accounting, rainbow land whales sex changes, etc to pay for as well.
There are many costs to consider for the movie beyond the production costs.
Based on statistics and data, a safe rule of thumb is four times the budget for the movie to break even.
Take the production costs (the "budget") and double it to account for all marketing, legal, and other costs outside the main production costs. Then you double it again to account for the fact that movie theaters typically take a 50% cut of all box office ticket sales. 2×2=4
2.5 times the budget is a more generous, but less safe, number to use.
Half the box office value goes to the movie theaters. Then they also spend a bunch of money on advertising that isn't included inside the published budget values.
2.5 isn't 100% accurate because sometimes they spend more on advertising than other films. For example Little Mermaid had way more than that spent on advertising while for Marvels they held back a lot as I think they already knew it was going to bomb.
Why is break-even 2.5 times the budget?
Advertising is usually equal to or more than the actual film budget.
not only that, they only get a portion of the box office anyways, %50 if i remember correctly, so break even is usually going to be more than double the film cost to include the theaters' share.
Like u/ovitz said. Recovering your manufacturing costs is just one part. You have marketing, legal, accounting, rainbow land whales sex changes, etc to pay for as well.
And flying employees out of state for abortions. Shit adds up.
Put a chick in it and make it gay. Doesn't work
They obviously needed MORE chick and MORE gay
Oh that's it. Ya more gay chicks lol
No, they need more trannies! Yeah, that'll boost those profit numbers up for sure!
Sounds like the company overhead rate.
you spelled money laundering wrong
There are many costs to consider for the movie beyond the production costs.
Based on statistics and data, a safe rule of thumb is four times the budget for the movie to break even.
Take the production costs (the "budget") and double it to account for all marketing, legal, and other costs outside the main production costs. Then you double it again to account for the fact that movie theaters typically take a 50% cut of all box office ticket sales. 2×2=4
2.5 times the budget is a more generous, but less safe, number to use.
Half the box office value goes to the movie theaters. Then they also spend a bunch of money on advertising that isn't included inside the published budget values.
2.5 isn't 100% accurate because sometimes they spend more on advertising than other films. For example Little Mermaid had way more than that spent on advertising while for Marvels they held back a lot as I think they already knew it was going to bomb.
advertising, merchandising and everything that costs money but isn't the direct production of the film I guess ?