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?
In: 409
Something no one is saying: “a success” isnt the breaking even, it’s **making more money than the same budget spent elsewhere.** A studio has $200 million to spend on a movie: if they make $250 million on that investment, but could have made $500 million investing that money in a different movie, that’s $250 million left on the table. Effectively a **loss** of $250 million.
Every investment, everywhere, is judged based on what else you could have gotten doing something else.
Latest Answers