From afar, movie industry seems to be glamorous. Producers and celebrities are walking down the red carpets, showing off their awards and fancy vacations. While there are tons of money involved in the industry, its economics are actually quite complicated. Something that you will often hear if you walk through halls of a movie studio is, “nobody knows anything” and that is a fact. The public may be fickle, the industry’s in flux and like any movie, it is a risky yet rewarding investment.
It’s beyond what You Thought
Generally speaking, big and top studios are not disclosing the full budget of the movies they produce from development, marketing/advertising and production. This is due to the reason that it costs more than what you think to make a film. So to give you an example, the budget to produce Marvel’s “The Avenger” is reported to be at 220 million dollar mark. However, if you are going to factor in the advertising and marketing costs, that figure can easily spike up.
Advertising is Part of Everything
Without a doubt, costs for print and advertising alone are extremely high. A 15 million dollar movie which is deemed to be small-budget in Hollywood may have promotional budget that is way bigger than the production budget.
This is due to the reason that numerous films do not have an audience built-up like the ones that are based on best-selling novels similar to 50 Shades of Grey or The Hunger Games series.
Children’s movies or romantic comedy films have to work harder in promoting themselves through media advertisements and commercials, in which the costs can quickly add up.
After all, in pretty much everything, advertising is always a part of marketing to build the market and audience which will yield into profits. Much like the D2items for sale cheap you find online, it has gone through marketing on different platforms and channels to make sales.
As for movies however, regardless of the type of film produced, things similar to revenues and tax incentives from product placements help in paying down the budget. If they are given incentives in shooting a film to a specific location, then producers often hustle in doing so.