making a movie

[selkirk]

came across a budget for spiderman 2, roughly what is costs.

should note that before DVDs a movie exec. once stated a 10% return for a film studio was a great year.

the movie industry have had a rough year with many films losing tens of millions of dollars and few winners.

also dvd sales more important than ever are less reliable.


Spiderman 2

1. Script licencesing $30million
Script and rewrites roughly $10millon
Licensing $20 million to marvel plus often a percentage of future royalties.

2. the film $100 million

producers $15 millon
director $10 miillion (often can cost up to $25 million)
cast $30 million

other costs $45 million : crew, equipment, extras, shooting on location....ect.

3. edit $70 - $72 million

basically including special effects, sort of important in a movie based on Spiderman.

for matirx 2 and 3 special effects cost $100 million roughly.

4. the sell $75 million

this is the basically of cost of selling the movie. they make the prints, but the greatest amount is advertising.

it is not uncommon for a blockbuster to spend more on advertising on the movie than it did to make it. promotional bugets can range up to $50-150 millon.


even more when you consider companys spends anywhere from 10-100million

ie samsung 100 million Matrix reloaded
Ford $36 million die another day.

a lot of work and money to get a big payoff. Spiderman 2 made money that is why there will be spiderman 3.


thanks
selkirk

 

[dawgball]

Excerpt from article in magazine, Fast Company , Dec 05 issue:

Second, nearly every movie loses money on its theatrical run these days. Studios typically pay as much to advertise a movie's cinematic release as they spent making the movie to begin with. They're stuck betting that much because a big-screen opening is essentially an expensive form of promotion--not only to the consumers who'll buy or rent the DVD but also to "the industry." The opening helps determine how much the studios can get for licensing the movie for pay TV, cable, and overseas. The theatrical release has become a loss leader to promote the studios' real moneymaker, the DVD, which in turn often serves as a loss leader for Wal-Mart to draw in shoppers.

Talk about a badly convoluted system. Hollywood's moguls know they're in big trouble when the single most powerful person in the industry today is Wal-Mart CEO H. Lee Scott Jr. Don't you think DreamWorks Animation CEO Jeffrey Katzenberg would rather hang out at a beach house in Malibu with Steven Spielberg than schlep to Bentonville, Arkansas, for the retailer's Saturday-morning management meetings? But schlep to Bentonville he does--often, actually--and he even wears a blue Wal-Mart apron when he's there.

This is an interesting article I read last night pertaining to this same subject. Mark Cuban rants about this quite often on his blog.

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