Movies are expensive to produce and market. According to IMDb,the most expensive film on the record is Pirates of theCaribbean: At World's End, with a total budget of $336million. This movie and its budget were widely publicized prior tothe premiere of the film, and moviegoers were eager to see theresults of this massive movie budget.
Like other large project, movies have budgets. Potentialfinanciers look at the budget, the script, and other factors todecide whether to invest in the movie, Several catergories of costswill be in a movie's budget, including:
-- Story Rights
-- Screenplay
-- Producers and directors
--Cast
--Production Costs
--Special Effects
--Music
The typical budget you read about in the press includes onlyexpenses The movie budgets released to the general public do notinclude estimated box office receipts or other revenue streams. Inaddition, movie budgets do not usually include marketing costs,which can be another 50% or more of the film's publicizedbudget.
Producers and directors will frequently release budget figuresfor upcoming movies, and these budget figures will be reported inseveral news outlets. However, Los Angeles Times writer PatrickGoldstein states that "everyone" lies about their movie budgets.For example, it was reported initially that The Avengers,a Marvel Studios film, had an overall budget of $170 million.Another source indicated that the budget for The Avengerswas $260 million. Which one of these figures was the "correct"budget figure? No one outside of the management of the movie reallyknows.
Requirements
1. âIf a Hollywood movieâs box office number exceeds itsproduction budget, then that movie makes a profit.â From readingthe information given in the case, do you agree with thisstatement? Why or why not?
Movies are expensive to produce and market. According to IMDb,the most expensive film on the record is Pirates of theCaribbean: At World's End, with a total budget of $336million. This movie and its budget were widely publicized prior tothe premiere of the film, and moviegoers were eager to see theresults of this massive movie budget.
Like other large project, movies have budgets. Potentialfinanciers look at the budget, the script, and other factors todecide whether to invest in the movie, Several catergories of costswill be in a movie's budget, including:
-- Story Rights
-- Screenplay
-- Producers and directors
--Cast
--Production Costs
--Special Effects
--Music
The typical budget you read about in the press includes onlyexpenses The movie budgets released to the general public do notinclude estimated box office receipts or other revenue streams. Inaddition, movie budgets do not usually include marketing costs,which can be another 50% or more of the film's publicizedbudget.
Producers and directors will frequently release budget figuresfor upcoming movies, and these budget figures will be reported inseveral news outlets. However, Los Angeles Times writer PatrickGoldstein states that "everyone" lies about their movie budgets.For example, it was reported initially that The Avengers,a Marvel Studios film, had an overall budget of $170 million.Another source indicated that the budget for The Avengerswas $260 million. Which one of these figures was the "correct"budget figure? No one outside of the management of the movie reallyknows.
Requirements
| 1. âIf a Hollywood movieâs box office number exceeds itsproduction budget, then that movie makes a profit.â From readingthe information given in the case, do you agree with thisstatement? Why or why not? |
