Every film is a unique product (even sequels) that enters an ever-changing market. With all that money flying around, you'd think that studios could at least spot a potential hit. James Cameron, who more or less invented the super-budget special effects genre with "Titanic," developed his own 3D technology for "Avatar" - and paid $14 million of his own money to do it. For "Transformers 2" ($225 million), special effects powerhouse Industrial Light and Magic used 40 full-time animators.
Not surprisingly, the most expensive movies of the past 20 years have had the biggest special effects budgets: "Spiderman 3" ($258 million), "Harry Potter and the Half-Blood Prince" ($250 million), and "Superman Returns" ($232 million) top the list. Icons like Denzel Washington and Tom Cruise are taking pay cuts up front in exchange for a bigger cut of DVD sales and distribution deals on the back end.
#HOW MUCH DOES INSIDE OUT THE MOVIE COST PLUS#
Once a star has a few mega-hits under his or her belt, they're usually welcomed into the exclusive $20 million per movie club - although membership isn't a lifelong privilege.Īfter a series of relatively star-free hits like "Transformers," "Star Trek," and "The Hangover," - plus a growing list of superstar flops like Will Farrell's "Land of the Lost" and Julia Roberts' "Duplicity" - studios are starting to see the light. The rationale is simple: Stars sell more tickets and are more recognizable or marketable to international audiences. So if a movie costs $100 million to make, you'll need an additional $50 million to sell it.įor studio films, the traditional "safe bet" is to spend major money on a big-name actor. When calculating a marketing budget, the rule of thumb is to spend 50 percent of the rest of the production costs (pre-production, filming and post-production). That strategy seems to work: "Spiderman 3" made 45 percent of its total gross ticket sales in its opening week, while "X-Men: The Last Stand" made 52 percent of its money in its first week of release
#HOW MUCH DOES INSIDE OUT THE MOVIE COST TV#
Big money is spent on trailers, TV ads, billboards, and Web sites to pack people in on opening weekend. Marketing makes up a huge chunk of modern movie budgets - $35.9 million on average - largely because the fates of many Hollywood releases are sealed in the first week.
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