What happens if a movie ends up negative? - Blu-ray Forum

GotToyota? · 06-08-2008, 10:42 PM

I have a question that I've always wondered about. Say a movie costs $30 million to make, but they only make $20 million while it's in the box office. What happens then? Does the studio just cut their loses?

-Matt

Moefiz · 06-08-2008, 10:43 PM

Quote:

Originally Posted by GotToyota?

I have a question that I've always wondered about. Say a movie costs $30 million to make, but they only make $20 million while it's in the box office. What happens then? Does the studio just cut their loses?

-Matt

Yep, they try to make it up with DVD and Blu sales and TV rights.

GotToyota? · 06-08-2008, 10:45 PM

Quote:

Originally Posted by Moefiz

Yep, they try to make it up with DVD and Blu sales and TV rights.

I was thinking about that. It would be possible that they wouldn't be negative for long with DVD releases, sales, and royalty, etc.

But I'm sure there are some that still are negative even after that. What happens then?

Moefiz · 06-08-2008, 10:49 PM

I guess they take it at a lost.

akadkins · 06-08-2008, 10:51 PM

They raise movie prices so we, the consumer, can make up that loss...

Heart_Collector · 06-08-2008, 10:53 PM

I thought most studios make most of their money off DVD sales any more. Quite a few movies tank in theaters but explode on DVD.

EricJ · 06-08-2008, 10:57 PM

Quote:

Originally Posted by Moefiz

Yep, they try to make it up with DVD and Blu sales and TV rights.

And in Sony's case, especially Blu sales.

(ahemtalladeganightswiththeps3)

Moefiz · 06-08-2008, 10:59 PM

Quote:

Originally Posted by EricJ

And in Sony's case, especially Blu sales.

(ahemtalladeganightswiththeps3)

I guess its not just me who notice that Sony hasn't had a good movie out in awhile.

GotToyota? · 06-08-2008, 11:04 PM

Quote:

Originally Posted by Moefiz

I guess its not just me who notice that Sony hasn't had a good movie out in awhile.

Casino Royale?

LynxFX · 06-08-2008, 11:16 PM

There's a reason why major Studios don't release 1 movie per year. If you have a bomb, you better hope another movie or two or 10 will pick up the slack. Once in a blue moon you get a studio that puts all of their eggs in one basket. Square USA did that with Final Fantasy: Spirits Within. It bombed in relation to the amount invested and they closed their doors directly because of it. New investments allowed them to get Advent Children made but on a much stricter budget.

Typical rule of thumb is that a movie must make twice its budget to break even because advertising costs, prints, etc. So a $100m budgeted film must bring in $200m before they can start cheering.

elmo · 06-09-2008, 12:02 AM

Quote:

Originally Posted by Moefiz

I guess they take it at a lost.

or make a sequel and hope for the best lol

Petra_Kalbrain · 06-09-2008, 12:12 AM

Quote:

Originally Posted by elmo

or make a sequel and hope for the best lol

But, if it was still in the red after DVD sales, they wouldn't make a sequel... or they would make a straight-to-DVD sequel, which would do just as poorly.

Batman00 · 06-09-2008, 12:15 AM

Quote:

Originally Posted by GotToyota?

I have a question that I've always wondered about. Say a movie costs $30 million to make, but they only make $20 million while it's in the box office. What happens then? Does the studio just cut their loses?

-Matt

For example, Speed Racer, many think its a total bomb, well it isnt, Warner Bros. is talking about a sequel already, its making a killing in merchandising from tennis shoes to toys. So if a movie doesnt do well in the box office, it can still do well with 1. DVD/Blu, 2. Merchandise, 3. TV Rights, 4. Product Placement.

It was a good movie, but people were pushed off because the children who watched the TV show are grown up and not interested

swindler · 06-09-2008, 12:21 AM

Quote:

Originally Posted by GotToyota?

I have a question that I've always wondered about. Say a movie costs $30 million to make, but they only make $20 million while it's in the box office. What happens then? Does the studio just cut their loses?

I don't think I ever quite understood your question. "Cut their losses?" They lost money on the venture. Just like an oil company might lose money drilling if they don't hit oil.

I mean, movie making is a business just like any other business. You invest $X in making something, and you get $Y back. Not every product developed makes money. You don't have to make money on every film, but you had better make a profit on enough of them to sustain your business.

That's why most major studios try to put out stuff that will be popular. If you don't, you won't get theater screens, cable rights, etc. You will find international films tend to be more artistic, etc, because they're not competing in the same market space as Hollywood.

LynxFX · 06-09-2008, 12:50 AM

Quote:

Originally Posted by Batman00

For example, Speed Racer, many think its a total bomb, well it isnt, Warner Bros. is talking about a sequel already, its making a killing in merchandising from tennis shoes to toys. So if a movie doesnt do well in the box office, it can still do well with 1. DVD/Blu, 2. Merchandise, 3. TV Rights, 4. Product Placement.

Actually, Speed Racer was/is a bomb. Budgeted at $120m and using the simple formula above, making it nearly $240m to break even, yet it has only pulled in $44m and doing worse internationally where some movies can actually be saved. Warner isn't talking sequels, they are only 'optimistic' of some return because of toy sales. The movie still has a long way to go to become profitable and will rely on high dvd/blu-ray sales to push it over. My neighbor worked on the film and he hasn't heard a peep about a sequel. If they do eventually go forth you can bet that it won't be nearly the spectacle the first was, meaning low budget, director for hire, new cast, and probably direct to video.

jadedeath · 06-09-2008, 12:54 AM

They'd end the franchise there.

For example, take a look at Speed Racer and if another one comes out.

I'll give you a hint, only making, at max 40 mill on a 120 mill budgeted movie is going to drop the Wachowski's from the Hollywood radar for awhile.

Logan

TheMightyCelestial · 06-11-2008, 06:09 AM

Quote:

Originally Posted by GotToyota?

I have a question that I've always wondered about. Say a movie costs $30 million to make, but they only make $20 million while it's in the box office. What happens then?

-Matt

God takes the life of a kitten.

UKTruBlu · 06-11-2008, 06:47 AM

Golden compass is a good example, i think New Line are still not sure if they making the next instalments......

06-08-2008, 10:42 PM	#1
GotToyota? Senior Member Member since:Jan 2008 Blu-ray collection:19 Trading Score:29	What happens if a movie ends up negative? I have a question that I've always wondered about. Say a movie costs $30 million to make, but they only make $20 million while it's in the box office. What happens then? Does the studio just cut their loses? -Matt

06-08-2008, 11:16 PM	#10
LynxFX Blu-ray Samurai Member since:Jul 2007	There's a reason why major Studios don't release 1 movie per year. If you have a bomb, you better hope another movie or two or 10 will pick up the slack. Once in a blue moon you get a studio that puts all of their eggs in one basket. Square USA did that with Final Fantasy: Spirits Within. It bombed in relation to the amount invested and they closed their doors directly because of it. New investments allowed them to get Advent Children made but on a much stricter budget. Typical rule of thumb is that a movie must make twice its budget to break even because advertising costs, prints, etc. So a $100m budgeted film must bring in $200m before they can start cheering. Last edited by LynxFX; 06-08-2008 at 11:19 PM.

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06-08-2008, 10:49 PM	#4
Moefiz Blu-ray Knight Member since:Jul 2007 Blu-ray collection:288 DVD collection:20 Blu-ray reviews: 15 Trading Score:70	I guess they take it at a lost.

06-08-2008, 10:51 PM	#5
akadkins Senior Member Member since:Jan 2007 Location:San Diego, CA Blu-ray collection:2 Trading Score:2	They raise movie prices so we, the consumer, can make up that loss...

06-08-2008, 10:53 PM	#6
Heart_Collector Senior Member Member since:Feb 2008 Location:Texas	I thought most studios make most of their money off DVD sales any more. Quite a few movies tank in theaters but explode on DVD.

06-09-2008, 12:54 AM	#16
jadedeath Blu-ray Knight Member since:Jun 2007	They'd end the franchise there. For example, take a look at Speed Racer and if another one comes out. I'll give you a hint, only making, at max 40 mill on a 120 mill budgeted movie is going to drop the Wachowski's from the Hollywood radar for awhile. Logan

06-11-2008, 06:47 AM	#18
UKTruBlu Senior Member Member since:Dec 2007 Location:Surrey, England Home Theater Gallery:9 Blu-ray collection:170 Blu-ray reviews:1	Golden compass is a good example, i think New Line are still not sure if they making the next instalments......

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