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from: Blair Leatherwood
date: 2010-01-01 20:56:54
subject: Re: Movie Finance Question

Dan Dassow wrote:
> On Jan 1, 11:54 am, "Mac Breck"  wrote:
>> Dan Dassow wrote:
>>> On Dec 31 2009, 4:43 pm, Professor 
>>> wrote:
>>>> I am looking around at the publically available sources of financial
>>>> data for movies to see which ones make money, which ones lose money,
>>>> etc. in part to see how JMS' film (and future films) do at the box
>>>> office.
>>>> I have examined imdb.com and box office mojo. On box office mojo it
>>>> shows domestic ticket sales and foreign ticket sales and
what I would
>>>> guess is an estimate of production cost for the movie.
>>>> In simple finanical terms, if you take the costs of production and
>>>> subtract out the revenue from ticket sales, domestic and foreign,
>>>> this would provide a profit or loss for the film. However, I suspect
>>>> there are numerous other cost items like distribution, advertising,
>>>> etc. that are not part of the production cost number indicated and
>>>> there are revenue items in terms of merchandise, DVD sales and
>>>> rentals that do not show up on the other side of the ledger either.
>>>> Does anyone knonw of a better site, or a better calculation, to
>>>> determine if a movie is or is not profitable for a studio?
>>>> David
>>> Corporations consider financial information proprietary and generally
>>> do not disclose financial information that is not specifically
>>> required by federal law by the U.S. Securities and Exchange Commission
>>> (SEC). You can search public SEC filings at
>>> http://www.sec.gov/edgar.shtml
>>> . You can also check individual company Annual Reports, such as the
>>> one for Disney (
>> http://corporate.disney.go.com/investors/annual_reports/2008/index.html
>>
>>> ). However, you are unlikely to find the detailed information that you
>>> seek.
>>> Dan Dassow
>> Honest detailed information would fly right in the face of Hollywood
>> creative bookkeeping, so you're not going to get honest numbers for a
>> specific project.
>>
>> http://www.jmsnews.com/msg.aspx?id=1-569
>>
>> http://www.jmsnews.com/msg.aspx?id=1-10921
>>
>> http://www.jmsnews.com/msg.aspx?id=1-17689&query=shot%20in%20Bolivia%...
>>
> 
> Since the SEC does not require detailed information by project, the
> Hollywood creative bookkeeping does not violate federal law. <*** SIGH
> ***>
> 
> Dan Dassow
> 
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.  This is based on really old 
information that I can't substantiate, but it sticks in my head (as many 
things worthwhile and worthless seem to do).  The factor will vary based 
on advertising, etc.

Of course, most studios will tell you (especially if you're the writer 
or have points in the production) that no movie ever makes any money.

Blair
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