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

Using your numbers, it would actually be a $600M break even.

$300M to the theaters (they take half)

$200M production

$100M marketing

$600M

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