On 3/23/2016 9:16 AM, moviePig wrote:
> On 3/22/2016 10:41 PM, BTR1701 wrote:
>> In article <ncs6l7$ua6$
1...@dont-email.me>, Obveeus <
Obv...@aol.com>
>> wrote:
>>
>>> Additionally, the 'budget' is usually the production cost and does not
>>> factor in all the advertising costs.
>>
>> It ought to. What's the justification for leaving out such a significant
>> and anticipated cost to every film?
>
> Possibly that its magnitude is more moment-to-moment discretionary.
Yep...and ongoing long after the film's release date (which is usually
the time when the 'budget' for the film is officially
announced/released). Also, the promotional costs are often shared
between the studio and the distributor and sometimes even the secondary
markets (like whatever TV network buys the rights to eventually premiere
the movie on cable offering up ad space to promote it while it is still
in theaters). The whole thing is extremely convoluted. Never the less,
the point remains that a person should not expect to be able to 'do the
math' (box office gross minus stated budget) and get an accurate answer
as to the film's profitability. It is a whole lot more accurate to
assume 50% of that stated box office gross and subtract the stated
budget from that number to estimate the likelihood of profitability for
the film before it has hit the aftermarkets (DVD/premium TV/ streaming /
basic cable / broadcast TV).