For example- I looked at The Mummy (2017) on Wikipedia, which had a budget of $125-195 million, and grossed $410 million worldwide at the box office, yet it also says the studio lost $95 million. How is that possible?
In: 99
That’s the budget to make the film.
There’s still the money you need to spend promoting and advertising the film.
However films these days are designed to lose money.
Actors often negotiate to get a share of the profit. And they don’t get paid if the film doesn’t make a profit. So studios make a “company” for the film, then charge that “company” an exorbitant fee for everything. So the film technically loses money, while they get all the profits.
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