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
Theaters get a share of the box office gross, while each movie’s specific share differs, the general working assumption is usually around half the box office goes to the theaters and half goes to the studios.
Also marketing is often a very large non-production cost.
Finally all of the cost figures are usually estimates, and not all estimates are accurate, they’re simply the best guesses of people who may not know the true numbers but have some insights about the cost.
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