The Screen Addict Recommends – Hollywood Accounting
Disney et al. will obviously never share exact data, but my theory is that for studio films the global marketing spend amounts to roughly 50% of the production budget.
The more expensive the film, the higher the P&A costs. Amongst executives, this is what’s known as the sunk cost fallacy: “We’ve spent so much money on this movie already, we cannot skimp on marketing now or we will never recoup!”
So, if 𝗔𝘃𝗮𝘁𝗮𝗿: 𝗧𝗵𝗲 𝗪𝗮𝘆 𝗼𝗳 𝗪𝗮𝘁𝗲𝗿 (𝟮𝟬𝟮𝟮) cost $200 million to make, the studio will cough up at least another 100 million smackeroos to promote the pic around the globe.
Pre pandemic, the leverage movie theaters held over content owners meant that they could pocket about half of the box-office returns. Maybe for a juggernaut like Avatar the studio gets a better deal, but let’s assume that by and large the 50/50 share still applies.
That means that a $200 million movie needs to make $600 million in ticket sales alone just to break even…
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