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Is it set to actually lose $132M, or just "lose" it in the tradition of Hollywood accounting?
by Gormo 1y ago
Is it set to actually lose $132M, or just "lose" it in the tradition of Hollywood accounting?
- Onavo 1y agoIsn't the rule of thumb for Hollywood that you have to make at least 3x the cost of production in box office sales to break even?
- rbinv 1y agoHow does that work?
- HWR_14 1y agoProduction doesn't include advertising or distribution. Advertising can often equal production costs. And box office revenue gets distributed to several groups, not just going to the people who own the movie.
- codyb 1y agoPresumably there's a fair amount of additional costs involved in marketing and distribution that aren't accounted for in the production figures and this ends up being a good baseline for a fuller accounting based on industry trends.
- HDThoreaun 1y agocost doesnt include advertising which tron had a lot of and studio has to split box office with theaters.
- Gormo 1y agoA Hollywood production often involves a huge number of distinct business entities in a complicated network of relationships with each other. Oftentimes, a specific business entity is set up to coordinate a single production, and that is the entity that reports the profit/loss for the entire project -- the project's revenues can be spread across lots of other entities, while its expenses are concentrated in that central entity, producing a nominal loss in their accounting records even if the movie as a whole was extremely profitable.
- TMWNN 1y ago/r/boxoffice says typically 2.5X.
- Gormo 1y agoThat applies to what you actually make, even if you are "losing" much more on paper.