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

If a movie sells $200 million worth of tickets, the company that made it does not receive $200 million. Some of that goes to the theaters, some of that goes to taxes. If it’s ticket sales abroad, then the government for that other country takes its cut too.

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