As an example – I read recently that Gemini man (Will Smith movie) was a box office bomb and paramount lost 111mn USD because of this movie. However the budget is 138mn USD and box office collection is 173.5mn USD. With box office collection this high and budget lower than box office, what were the reasons for paramount to lose 111mn? Baffling to me.
Source: https://en.m.wikipedia.org/wiki/Gemini_Man_(film)
In: Economics
The budget usually doesn’t include the advertising/merchandising/distribution cost, which can be HUGE. On the order of the budget (cost to actually create the movie).
So if they took $174M at the box office and the movie took $138M to make, they only had $36M left for marketing/distribution and that’s almost impossible…they probably spent $100M+ on on that. Hence the giant loss.
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