Timeline for How do movie studios evaluate the success of a film?
Current License: CC BY-SA 4.0
17 events
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Aug 11, 2020 at 20:51 | comment | added | BCdotWEB | It's not so much Disney banking on this one movie, it's that even the likes of Disney cannot spend hundreds of millions on several movies and then only one of them becoming a sizable hit. Plus, there's the expectations. See also: ew.com/movies/star-wars-movies-box-office-comparison | |
Aug 11, 2020 at 13:29 | history | edited | RLH | CC BY-SA 4.0 |
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Jun 30, 2018 at 3:32 | history | tweeted | twitter.com/StackMovies/status/1012901632303038464 | ||
Jun 23, 2018 at 16:26 | vote | accept | RLH | ||
Jun 21, 2018 at 17:37 | comment | added | Oliver_C | Related: Why is the break-even point for movies usually twice the budget? | |
Jun 21, 2018 at 17:01 | answer | added | iandotkelly♦ | timeline score: 7 | |
Jun 21, 2018 at 16:01 | comment | added | M. A. Golding | IMHO a studio's income from theater showings is its net income, while the total amount of box office receipts is the gross income ( $343,297,558 in this case), which is shared by the theaters and the studio. Thus Disney's net income from solo so far might be only $ 200,000,000.00 or something, which would be a loss of tens of millions of dollars so far. | |
Jun 21, 2018 at 15:24 | review | Close votes | |||
Jun 22, 2018 at 7:17 | |||||
Jun 21, 2018 at 15:23 | comment | added | iandotkelly♦ | It is indeed strange that marketing is usually not reported in the production cost. Possibly its because the number is more fluid and not fully accounted for than the production cost, which often happened in the past, the production taking place over the last couple of years. I guess if a movie gets a lot of natural hype and word of mouth, they may decide to spend less on marketing. | |
Jun 21, 2018 at 15:22 | comment | added | RLH | All ^^ points well made and received. As the old saying goes, "don't put all of your eggs in one basket", it sounds like Disney may have expected significant profits from Solo to subsidize the less-profitable films of this year, and their bet was wrong. Also, I had no clue that marketing wasn't counted in the expense numbers. I know it's not the cost of "making" but if you don't advertise a film, few people will go see it. I would personally just assumed it would have been part of the cost. | |
Jun 21, 2018 at 15:18 | comment | added | iandotkelly♦ | As @Paulie_D says, its a question of risk ... making 10% on an investment of hundreds of millions of dollars is a huge risk. Also, your expectation that the "hidden expenses" is only $50m is probably an underestimate. Rule of thumb for marketing expenses is around 50% of the production costs, expensive blockbusters get more money spent on the marketing. So we may be looking at $125m in marketing budget, meaning they have to make $375 to break even. They will want to bring in double that before they start to consider the movie to have been worth the investment risk. | |
Jun 21, 2018 at 15:13 | comment | added | BCdotWEB | If you expect to make $500 million and you make only $300 million, some would regard that as a flop. Assume a studio makes ten movies a year: most of them will lose money, a couple will do OK, and one will provide you with a massive profit. If that one movie that's supposed to be doing that underperforms, you're suddenly in a lot of trouble. | |
Jun 21, 2018 at 15:11 | comment | added | Paulie_D | And this might even be a dupe - movies.stackexchange.com/questions/12372/… | |
Jun 21, 2018 at 15:10 | comment | added | Paulie_D | This is kinda related - movies.stackexchange.com/a/87562/34317 | |
Jun 21, 2018 at 15:08 | comment | added | Paulie_D | It's a matter of relative risk. Do you spend $300m and hope to make $301m...sure it's profit but was it worth risking it? | |
Jun 21, 2018 at 15:07 | history | edited | Paulie_D | CC BY-SA 4.0 |
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Jun 21, 2018 at 15:00 | history | asked | RLH | CC BY-SA 4.0 |