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
Because the movie studio doesn’t get all the money from ticket sales. The ticket price is split between the studio and cinema showing the movie.
In general the studio gets 50-60% from the domestic market (US-Canada), 40% from International markets and just 25% from China.
Chinese distribution does pay for all the marketing in China unlike how the studio pays for marketing in other countries, so it’s not as bad.
Also the movie budget only accounts for the production of it. It doesn’t include marketing and distribution costs.
It’s very hard to get concrete numbers as big studios act as their own distributors and manage their own marketing campaigns.
But thanks to leaks and industry insiders we have been able to compile enough data to get the rule of thumb. If a movie makes about 2.5-2.7x it’s production budget, it has broken even. (2.7x is for movies that made the bulk of their money in China)
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