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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Anonymous 0 Comments

It doesn’t. It’s what the studios do to try and convince people that they can’t pay the points. So now they are making up this b.s. about the movie not being profitable. Hollywood accounting used to be a well-known phrase.

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