Where does the money from movies go?

Usually, a portion of theater ticket sales goes to theater owners, with the studio and distributor getting the remaining money. Traditionally, a larger chunk went to the studio during the opening weekend of a film. As the weeks went on, the theater operator’s percentage rose.

Who puts up the money to make a movie?

The producer is responsible for funding the film until that point and must pay any additional costs if the film goes over-budget. The producer will then take that contract to a bank for a traditional bank loan or to equity investors as collateral.

Why do movies need so much money?

The equipment and supplies needed to film the movie are very expensive, too. Set design and effects also take lots of money, especially in blockbuster action films. Blowing things up doesn’t come cheap; between safety regulations and the raw material itself, these costs can easily add up to millions.

How much does it cost to make a movie?

The average production budget of a major studio film in 2007 was $106 million [source: MPAA ]. Marketing makes up a huge chunk of modern movie budgets — $35.9 million on average — largely because the fates of many Hollywood releases are sealed in the first week.

How much do Hollywood movies spend on marketing?

Marketing makes up a huge chunk of modern movie budgets — $35.9 million on average — largely because the fates of many Hollywood releases are sealed in the first week.

Do high-budget movies make enough to justify the expense?

Those are high-budget examples of movies that made enough to justify the expense, but not all movies do. Some costly flops include 2002’s “The Adventures of Pluto Nash,” which had a $100 million budget and managed to gross just a bit over $7 million.

Does more money mean more expensive movies?

According to Parkinson’s Law, more money means more (and more expensive) movies. The half-billion-dollar “Avatar” received 60 percent of its backing from non-studio sources, which makes it much less of a gamble for the nervous accountants at 20th Century Fox, but still one very pricey popcorn flick [source: Cieply ].