How Exactly Do Movies Make Money?

Inevestopedia ^ | 10/18/21 | Dina Zipin

[DallasBiff]

From a distance, the movie business might look pretty glamorous. Celebrities and producers glide down red carpets, clutch their Oscars, and vacation in St. Barts—just because they can. While there's a lot of money to be made in the film industry, the economics of making movies are far from simple.

Something you’ll likely hear if you walk through the halls of any movie studio is “nobody knows anything.” And that’s true. The public can be fickle, and the industry is in flux. Just about any movie is an extremely risky investment, even a film starring big-name actors and actresses. According to the Motion Picture Association of America's (MPAA) Theatrical Market Statistics Report for 2021, the U.S. and Canadian box office came in at $4.5 billion in 2021, up 105% from 2020 due to theater re-openings following the COVID-19 pandemic lockdowns, but remained well below pre-pandemic levels.

[HartleyMBaldwin]

I haven’t heard that album in way too long.

[ProtectOurFreedom]

I’m going out on a limb here, but I’ll hazard a guess that costs have to be less than revenue.

[minnesota_bound]

The movie can make a mint but the studio will tell all that the movie lost money. Especially to the net profit participates who are told there are no profits and Star Wars movies lost money....

Hollywood accounting
https://en.wikipedia.org/wiki/Hollywood_accounting
According to Lucasfilm, Return of the Jedi (1983), despite having earned $475 million at the box office against a budget of $32.5 million, “has never gone into profit”.

Google: hollywood accounting
Many stories.

[wgmalabama]

Always get money up front or a cut of net. Never get a cut of profit.

[Albion Wilde]

bump for later

[Vaduz]

Micky Rooney said it best when asked about movies of late.

Hollywood don’t make movies they make deals