When is a movie considered profitable??
 

Sort of a nerdy, pedantic question.....

I hear a lot about the pressure for films to make a lot of their money back the opening weekend, but also how international sales and dvd rentals can make a lot of money later...

Is there any sort of standard for a film 'doing well'? Do you have to make it back within a month or two? or six? or a week?

I read in Christopher Lee's autobiography he ran into Spielberg 20 years after appearing in '1941' - Spielberg informed him that just recently '1941' finally made a profit.....

Depends how creative the accountants are being with the figures.

I guess A movie makes money after they have recovered the production costs and paid all involved.

If you make more than what you put in then the movie has made a profit

Andy, if it were only that simple.

There's a great book, by Art Buchwald, on his fight with Paramount over "Coming to America". It goes into detail on the creative accounting practices in the film industry. It also points out, that that's why the stars 'big' salaries got so big. Money up front instead of a 'piece of the profits' which never show up.

Like that great line from Shakespeare in love...

"Where will we get the money?"

"We'll offer them a share of the profits."

"But there's NEVER any profits!... Oh! I think you might be on to something!"

Speaking of Paramount... I think Forrest Gump was made by them... gee can't think of his name now... but a friend and I went to his parents house in Vegas (free hotel)... we started talking to a guest of the person who lived next door as he was loading suitcases into a car... okay got it... Eric Roth...

He didn't have much time... but he told us that it was funny that Tom Hanks and Robert Zemeckis got their backend... but when it came time for his... they said the movie didn't make any money...

the more persons taking percents/points the longer it takes to make a profit because the cost of the movie keeps going UP every time percents are paid out ...
so a movie that the studio says cost 100 mil = the 100 mil is NOT the final cost of the movie because all those percents to director, actors, producer keeps raising the cost of the movie ... then there is the interest that keep getting added to cost and remember the studio changes a % fee for stduio overhead = it is not a set amount in $$ - it is usually a % of the cost of the movie = more the movie cost the more overhead $ goes to studio ..
most top actors,directors,producers take "gross " points never NET points ... net points usually mean you get NOTHING ...