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Hollywood News: WGA Battle - The Hollywood Fight That’s Tearing Apart Writers & Agents UPDATE: 2023 Strike OVER but SAG still at it!

@playahaitian

playahaitian said:
www.hollywoodreporter.com

Rise of the Machines: Inside Hollywood’s AI Civil War

The technology is already transforming the industry — and could forever change the entertainment we consume. But the battle to contain it has just begun.
www.hollywoodreporter.com www.hollywoodreporter.com

@raze
Click to expand...

"Studio executives sit on a strange fault line of the AI insurgency, thrilled by the production money they can save in an ever-chillier climate for their product, yet terrified that consumers might look to save their own money and just make the product themselves."


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* regardless of all the bullsh*t youtube and twitter movie experts say? And no matter what EQUATION you want to rely on. It aint THAT easy to figure out IF a movie is profitable or not (BY DESIGN!). So concerning ourselves too much with grosses and budgets is a waste of time if we want ACCURACY.
production plus marketing times 1.5 equals your break even point for movies

or
production budget multiplied by 2.5

Breaking down movie profitability
You're right to connect production and marketing costs to a film's break-even point.
However, the calculation is more nuanced than simply multiplying those costs by 1.5. Here's a breakdown of how break-even is generally considered in the movie industry:
  • Production Budget + Marketing Costs: These are the foundational expenses that need to be recouped.
  • Box Office Revenue Split: The studio doesn't keep all the box office revenue. Theaters typically keep a significant portion, roughly 50% in the US, with varying percentages internationally.
  • The "Multiplier Rule" for Break-Even: While studios don't publicly disclose exact break-even figures, a common rule of thumb is that a movie needs to gross 2 to 2.5 times its production budget at the box office to break even, accounting for both production costs and marketing expenses. Some argue this multiplier can be closer to 3 for big budget films due to higher-than-average marketing and/or a lower percentage of the total box office compared to previous years.
  • Beyond the Box Office: It's important to remember that a movie's break-even point is not solely dependent on theatrical box office performance. Additional revenue streams like home video sales, streaming rights, and licensing deals also contribute significantly to profitability.
In essence, while the production cost multiplied by roughly 1.5 accounts for production and a standard marketing estimate, you need to factor in the box office split and other revenue streams to accurately determine a film's overall break-even point.
It's a complex calculation, often shrouded in studio accounting practices that can make it difficult to determine the true profitability of even a highly successful film.
 

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