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Film finance is a subset of project finance, meaning the film project's generated cash flows rather than external sources are used to repay investors. The main factors determining the commercial success of a film include public taste, artistic merit, competition from other films released at the same time, the quality of the script, the quality of the cast, the quality of the director and other ...
Film budgeting refers to the process by which a line producer, unit production manager, or production accountant prepares a budget for a film production.This document, which could be over 130 pages long, is used to secure financing for and lead to pre-production and production of the film.
Production overhead: Studios, on average, calculate production overhead by using a figure around 15% of total production costs. Distribution overhead: Film distributors typically keep 30% of what they receive from movie theaters ("gross rentals"). Marketing overhead: To determine this number, studios usually choose about 10% of all advertising ...
[nb 39] Another notable omission is Metropolis, the 1927 German film directed by Fritz Lang, often erroneously reported as having cost $200 million at the value of modern money. Metropolis cost $1.2–1.3 million at the time of its production, which would be about $24 million at 2021 prices, according to the German consumer price index. [nb 40]
The figures are given at their nominal value, since earnings from profit-based deals are accumulated over many years, making it unfeasible to adjust for inflation. Keanu Reeves earned a record $156 million for the first two Matrix sequels, filmed back-to-back. Tom Cruise has earned in excess of $100 million per film on three occasions.
In 1900, Charles Pathé began film production under the Pathé-Frères brand, with Ferdinand Zecca hired to make the films. By 1905, Pathé was the largest film company in the world, a position it retained until World War I. Léon Gaumont began film production in 1896, supervised by Alice Guy. [97]
The UK film Monsters is a recent successful example of bringing what was once considered the exclusive preserve of the big studios—the expensive, special effects blockbuster—to independent, low-budget cinema. [19] The film's budget was reported to be approximately $500,000, [20] but it grossed $4,188,738 [20] at the box office.
Marketing can play a big role in whether or not a film gets the green light. Audience research is a strong factor in determining the ability of a film to sell in theaters, which is ultimately how films make their money. As part of a movie's marketing strategy, audience research comes into account as producers create promotional materials. These ...