3 ms·
Trying to guess at whether a film made money or not is a very murky science. Reported budgets are rarely accurate and do not include interest on loads taken to
by pixel_fcker 10y ago
Trying to guess at whether a film made money or not is a very murky science. Reported budgets are rarely accurate and do not include interest on loads taken to fund the production, or marketing costs (can be 50% of the production budget again for a global blockbuster release). These costs are offset by subsidies and tax breaks from filming or posting in certain locations, and from product placement and licensing deals - licensing alone can entirely cover the cost of main production for some big "event" movies.
Then, as others have said, the theatre takes a cut, then the distributor takes a cut, and so in the end a movie that takes twice its budget at the box office may still be in the red as far as the production company is concerned.
This is all made even more opaque by all the accounting trickery to minimize tax exposure and make sure that the studio has to pay "points" (contractually agreed percentage of profit/revenue after some break-even) to as few people as possible.