Why studios make profits when movies box office exceeds production costs?
Question by Frost: Why studios make profits when movies box office exceeds production costs?
Is the box office the total money the movie makes in theaters or it is the total money minus the percentage that the movie theater gets?
If my movie cost 10M to produce and it makes 10M in total sales and the movie theater take a percentage of that, doesn’t this make it a loss?
DVD, toys, and International sales, it’s an extra, that goes to other studios departments, not movie production.
Picture this: it’s 1975 and there are no toys or videos attached to sales. Even then if box office exceeded production costs, the studios made a profit.
My question is WHY? If they have to pay a percentage to movie theaters…
Right about that dobberx.
But if the Box Office reports 10 million, and the production costs are 10 million, then the movie had a loss of 10% because of the theater margin?
Best answer:
Answer by rickdark1
The theatres get $ 1.00-2.50 for every person who walks in the door and pays.
There is much more to the movie process than the movie it’s self
Product placement,Merchandising,future sales from other forms of medium (DVD or TV)
and not to mention the toys and other garbage that comes out when a big movie hits,
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