Studios are spending hundreds of millions on films that rarely make their money back. With soaring production costs and bloated marketing budgets, is this business model sustainable?
The Budgets inflated when they opened up to China and wanting to get into their market…was easy to make a profit with them..read “Red Carpet: Hollywood, China, and the Global Battle for Cultural Supremacy” by Erich Schwartel. It’ll help give you some more context. Great fascinating read. You will certainly enjoy it and open your eyes…one fascinating fact…did you know that there is a Martin Scorsese movie from 1997 made by Disney and was only released in 2 theaters, is unavailable to stream anywhere and can only be bought on Amazon for like $100 used? Read the book and find out more 😉
Do you think the enormous outlay in cash is the business model pivot toward a “cash out” instead of royalties? At least, that’s what I’ve heard Netflix employs, for ex., Duplass creates something for $1,000,000, sells it for $2,000,000, and shares the wealth? $8-15 million is a phenomenal price point that anyone with production experience can deliver on. Maybe the shift is underway.
You grazed it in the second line. Streamer-studios are using inflated budgets as write-off opportunities while celebrity producers and EPs have been siphoning money for decades now.
I never heard of "Red One" before. Shows how far the big marketing budget went...
I agree with about everythin you worte here except lumping in Dune with other franchise movies. This was the best I have seen in the cinema since the Lord of the Rings and my only regret is that the movies are to short. Would gladly pay $/€150 for a 4K box with two extended cuts.
The Dune movies aren’t a problem. Those are great. It’s what’s going to come after the success with the spinoffs and prequels and tv shows and it will be milked to death again unfortunately.
that is quite possibly true, sad to see that happen even with Dune.
I already have this feeling in my stomach about the first Amazon James Bond projetct. On the one hand you want to see what it is. On the other hand you know that it is porbably very bad and I do not want to encourage that by paying for it.
One reason for this might be big name actor salaries? $20 million upfront payments blot budgets (even though I know why they ask for them - “nobody gets gross” after all, and Hollywood accounting often leaves the talent holding the empty bag).
The unions have to force studios to open the books - that’s the first step towards solving the problem.
Meanwhile Severance is so expensive and SO SO worth it. If they want to spend $$ there's mind bending fascinating ways to do it. Whoever is in charge of Apple TV's New Content division is a person of taste.
Studios seem to want to blow $$ at action, speciial effects in order to make big $$ with Global teenaged boys and young men. And also very famous actors which female audiences esp care about. Use Plots and dialogue that are very easy to translate and understand. The great works are difficult to gain global appeal. All the nuances of dialogue and culture. Just Do the equivalent of Fast and Furious 15 except with super heroes , hell add some transformer camios and even more special effects. Make sure every actor's name is known globally.
Could not agree with this more. There’s a lot of scams and such in Hollywood. Dark money that never gets scrutinized. And people, for the most part, don’t care because it’s not in front street. But as someone who teaches how to make movies for $1000, you can do a lot for $20M. Hell, the best picture award winner for this year was made for $6M. Feel how you want about Anora, but I’m guessing they’ll make their money back and then some.
The Budgets inflated when they opened up to China and wanting to get into their market…was easy to make a profit with them..read “Red Carpet: Hollywood, China, and the Global Battle for Cultural Supremacy” by Erich Schwartel. It’ll help give you some more context. Great fascinating read. You will certainly enjoy it and open your eyes…one fascinating fact…did you know that there is a Martin Scorsese movie from 1997 made by Disney and was only released in 2 theaters, is unavailable to stream anywhere and can only be bought on Amazon for like $100 used? Read the book and find out more 😉
Do you think the enormous outlay in cash is the business model pivot toward a “cash out” instead of royalties? At least, that’s what I’ve heard Netflix employs, for ex., Duplass creates something for $1,000,000, sells it for $2,000,000, and shares the wealth? $8-15 million is a phenomenal price point that anyone with production experience can deliver on. Maybe the shift is underway.
You grazed it in the second line. Streamer-studios are using inflated budgets as write-off opportunities while celebrity producers and EPs have been siphoning money for decades now.
I never heard of "Red One" before. Shows how far the big marketing budget went...
I agree with about everythin you worte here except lumping in Dune with other franchise movies. This was the best I have seen in the cinema since the Lord of the Rings and my only regret is that the movies are to short. Would gladly pay $/€150 for a 4K box with two extended cuts.
The Dune movies aren’t a problem. Those are great. It’s what’s going to come after the success with the spinoffs and prequels and tv shows and it will be milked to death again unfortunately.
that is quite possibly true, sad to see that happen even with Dune.
I already have this feeling in my stomach about the first Amazon James Bond projetct. On the one hand you want to see what it is. On the other hand you know that it is porbably very bad and I do not want to encourage that by paying for it.
One reason for this might be big name actor salaries? $20 million upfront payments blot budgets (even though I know why they ask for them - “nobody gets gross” after all, and Hollywood accounting often leaves the talent holding the empty bag).
The unions have to force studios to open the books - that’s the first step towards solving the problem.
Meanwhile Severance is so expensive and SO SO worth it. If they want to spend $$ there's mind bending fascinating ways to do it. Whoever is in charge of Apple TV's New Content division is a person of taste.
Studios seem to want to blow $$ at action, speciial effects in order to make big $$ with Global teenaged boys and young men. And also very famous actors which female audiences esp care about. Use Plots and dialogue that are very easy to translate and understand. The great works are difficult to gain global appeal. All the nuances of dialogue and culture. Just Do the equivalent of Fast and Furious 15 except with super heroes , hell add some transformer camios and even more special effects. Make sure every actor's name is known globally.
Instant Green light!
Insane infographic!! this is awesome, thank you
Could not agree with this more. There’s a lot of scams and such in Hollywood. Dark money that never gets scrutinized. And people, for the most part, don’t care because it’s not in front street. But as someone who teaches how to make movies for $1000, you can do a lot for $20M. Hell, the best picture award winner for this year was made for $6M. Feel how you want about Anora, but I’m guessing they’ll make their money back and then some.