The movie business seems quite glamorous from an audience point of view. Celebrities get to walk the red carpet, attend high graced events like the Oscars and generally get to enjoy the life. At least somewhere in our lives we all wanted to be an actor.
There are a good many movies which are produced every year. Hollywood ensures that big budgeted movies get to hit the box office. For instance in 2017 the highest grossed film was Star Wars: Episode 8 which garnered about $1.7 billion.
If you are into Betway88 online home entertainment, you would know just how important the entertainment industry is today.
However more often than not there are small feature films which cost really less during production and end up breaking in the box office. For example Paranormal Activity, was a low budget film which became a runaway hit.
There is a lot of money which is made in the film industry. However the math of making a movie is not that simple. If you ask any producer when making any movie it is a risky endeavour that no one knows how it will turn out. There are cases of movies which have flopped despite starring big names of actors and actresses.
For instance King Arthur: Legend of the Sword cost a whooping $175 million to produce. However it only opened at $15 million the US. And to make the matter worse it got a rating of 28% from Rotten Tomatoes.
The cost of making a movie breaks down in so many categories. This includes script and development which will cost about 5% of the total budget. Morever there is the issue of license, salaries of both actors, producers and directors. In addition there is the production cost which will take about 25% of the total production cost.
Once a movie has been made there is need for distribution and marketing. For instance Spiderman 2 cost about $75 million to market it. Marketing can hurt the total profit of a movie. For instance if a movie was produced with about $100 million and it grosses about $130 million, the profit is $30 million. However, if marketing cost $50 million then it will have grossed a negative of $20 million.
A question which lingers on most people’s mind is how Hollywood makes money. Well there are various ways which come into play when grossing a movie.
Ticket sales are one way which films make money. The studio and the Theatre will each get a proportion of the ticket sales. For instance during the premier weekend the studies will get a chunk of the ticket sales. This can be about 60% of the money made. However on occasions when a film is a flop the theatre will take a huge cut if the ticket sales.
Merchandising is also another tactic films make money. This has been a good strategy for films which attract kids. For instance Toy Story grossed billion of dollars just from the merchandise. Comic-con junkies are another set which buy a lot of merchandise thus movie of their genre profit a lot.
Nobody knows what happens in Hollywood but it is clear that they are making some money.
