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echo: babylon5
to: rec.arts.sf.tv.babylon5.moderated
from: Blair Leatherwood
date: 2010-01-04 10:24:04
subject: Re: Movie Finance Question

Fel wrote:
> On 3 Jan., 16:10, Jon Schild  wrote:
>> Duggy wrote:
>>> On Jan 2, 4:28 pm, 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.
>>> It also has to be remembered that Box-Office is what the cinemas get,
>>> not what the studios get.
>>> =
>>> = UG.
>>> =
>> But depending on the "agreement" forced on the theaters
by the much more
>> powerful studios, 90% of box office is likely to be what the studio
>> gets. We can thank the studios for $8.00 drinks and $5.00 candy bars as
>> the theaters try to survive on their small share of box office.-
Zitierten Text ausblenden -
> 
> Ok, but the up to 90% is only for the first week of release. 2nd and
> 3rd week are typically around 50% and after that it's more like 80%
> for the cinema. As most of the movies (especially hyped blockbusters)
> are very frontloaded, I would estimate that the studio would get
> around 65% of the movie box office.
> However, one should keep in mind that the movie theater is not the
> major revenue stream of a movie. I only have numbers for 2000, but
> then only about 25% of the revenue came from the theater, the
> remaining 75% from DVD (and at that time also VHS) sales and from TV
> rights. (The percentage might have shifted away from to theatre more
> towards home video in the last 10 years).
> So it might well be that a movie needs to have a box office of 3 times
> its production cost to make it in to the black with cinemas alone, but
> the overall business case is different.
> 
> So long,
> 
> Mark
> 
> 
This might answer some questions (and raise more, I'm sure!):

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/01/avatar-worldwide-total-hits-1-billion-as-foreign-grosses-explode.html

Quote from article:

20th Century Fox, Dune Entertainment and Ingenious Film Partners spent 
about $280 million to produce "Avatar," while Fox kicked in an extra 
$150 million for worldwide marketing and distribution. Since studios 
collect a bit less than half of worldwide ticket sales, it will likely 
earn a small profit on theatrical revenue alone and significantly more 
from DVD and other markets.
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