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4-Day Wknd Est: FF6 - 120M; TH3 - 51.2M; STID - 47M; Epic - 42.6M; IM3 - 24.3M; TGG - 17M

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We never talk about this here but it seems like budgets are so high these days that films, most films, really don't break even in theatrical release.  The rely on HV, TV, merchandise and all the other ancilliary avenues they have coming to them after the theatrical release.

This is true. Countless films that make big money at the box office still need home video profits, TV licensing, VOD revenue and maybe even merchandise percentages to turn a profit. Then of course you have the big budget disasters that don't even break even after all of it. (Town & Country, How Do You Know, Final Fantasy: The Spirits Within, John Carter etc.)

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We never talk about this here but it seems like budgets are so high these days that films, most films, really don't break even in theatrical release.  The rely on HV, TV, merchandise and all the other ancilliary avenues they have coming to them after the theatrical release.

 

I know tv rights are highly lucrutive for the studios which is why one major goal is to build a huge library of popular movies for steady income.

 

But dvd sales have gone down a great deal since their hey day back in the early 2000's and marketing cost have only gone up.

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This is true. Countless films that make big money at the box office still need home video profits, TV licensing, VOD revenue and maybe even merchandise percentages to turn a profit. Then of course you have the big budget disasters that don't even break even after all of it. (Town & Country, How Do You Know, Final Fantasy: The Spirits Within, John Carter etc.)

 

Truth be told, more movies lose money than make it.  Studios tend to spread their risk, and their really big movies make the money...to offset all the movies that lose.  I don't think this is even unique to our time either, just kind of the nature of the business.

 

But you are absolutely correct that other revenue streams are still essential.  Theatrical performance has grown a lot, and international revenues have become much more important.  But that theatrical stream still only represents maybe 40%-50% of the total pie these days.  They are greenlighting these movies with the expectation of those other revenue streams.

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It is surprising how Blu-ray and DVD sales have dropped so hard. Film studios really do need to rely on so many revenues just to get a profit. I don't understand why the budget of movies have not been steadily going down rather than up.

Cus the other parts of the pie has been getting bigger. Theatrical only represents on average ~20-30% of WW revenues, I believe. TV rights, merchandising, Home Video, and etc. make a lot of money.
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It is surprising how Blu-ray and DVD sales have dropped so hard. Film studios really do need to rely on so many revenues just to get a profit. I don't understand why the budget of movies have not been steadily going down rather than up.

Aren't DVD and Blu Ray sales dropping because of download services like iTunes and Amazon. I buy a lot more that way now. Also VOD is a lot more convenient as well.
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Aren't DVD and Blu Ray sales dropping because of download services like iTunes and Amazon. I buy a lot more that way now. Also VOD is a lot more convenient as well.

 

 

My theory is that dvd collecting has plummeted.

 

I remember when everybody was showing of their 50+ dvd collection (2002-2006).

 

Now nobody cares about that stuff.

 

I guess people noticed how little they re-watched older movies. Even the really good ones.

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The big $$$ these days is in merchandising, which is why animated flicks and superhero franchises are such priorities for studios

 

It's also because superhero franchises are some of the biggest franchises out there right now. It's only when a movie explodes or is anticipated fiercely when merchandise related to it sells. I doubt Green Lantern and John Carter memorabilia ever flew off shelves.  :P

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I wonder how many more Fast and Furious movies they can do until things get stale and the domestic box office take starts to drop like a rock.

 

I guess if the overseas take gets high enough it won't matter like POTC.

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