why does a big budget movie require a 2.5x budget just to break even?

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Like if a movie cost $200 million to make, then the break even is 500 million.

I heard that the .5 accounts for marketing/ PR. But why does it need to make the remaining 2x to break even? If it cost 200 million. Then the .5 is 100 million. So it should only cost 300 million to break even.

Why would it need the additional 200 million and get to 500 million to breakeven?

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23 Answers

Anonymous 0 Comments

Doesn’t really answer the question, but hear me out, here’s how Hollywood could start making loads of money.

By stopping making movies. Those represent huge expenses, sometimes the studio has a blockbuster, sometimes a flop.

But every year in the USA, there are 3.6 million babies born. That 3.6 million future filmgoers that *have never seen Star Wars in a movie theatre*.

Hollywood should just stop making movies and re-release old classics for new clients.

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