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echo: babylon5
to: rec.arts.sf.tv.babylon5.moderated
from: Blair Leatherwood
date: 2010-01-03 09:09:54
subject: Re: Movie Finance Question

Duggy wrote:
> On Jan 3, 1:52 am, Blair Leatherwood  wrote:
>> Joseph DeMartino wrote:
>>> On Jan 1, 11:56 pm, Blair Leatherwood 
>>> wrote:
>>>> Without getting into actual numbers, I think the rule of
thumb has been
>>>> that a movie needs to gross (at a minimum) 1.5 times its
production cost
>>>> to even consider being in the black.
>>> Actually I'm pretty sure the rule--of-thumb is that a film has to
>>> gross *three times* its production costs in order to break even.  This
>>> estimate also covers the cost of prints, distribution and
>>> advertising.
>>> Regards,
>>> Joe
>> Ahh, inflation (I *said* my information was really old!).
> 
> I'm not sure inflation is the word.  Tickets rise faster than
> inflation, I believe (correct me if I'm wrong).

How about "inflation of ticket prices"?  Is that specific enough for you?

And, general inflation does apply here as well.  My "rule of thumb" is 
at least 20 years old, and prices for everything (tickets, advertising, 
above and below the line costs) have all gone up.  Some of those costs 
included in production are probably not connected to the general economy 
  anyway.

As to the remainder of your response, the movie biz has used every means 
of advertising available since day one--not just trailers and lobby 
cards, but many of the other options you mention (whatever the 
technology of the day would allow).

Blair
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