Hollywood Blockbuster Economics

Cluster focuses on the economics of the movie industry, explaining why studios prioritize high-budget blockbusters, sequels, and superhero films to ensure profitability amid high production/marketing costs, piracy, streaming impacts, and the need for hits to offset flops, often analogized to VC funding.

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Keywords

howstuffworks.com e.g IMO HN BILLION DVD cost.htm CGI PBS VC movies movie studios money films disney film hollywood dollars budget

Sample Comments

theseatoms β€’ Jun 3, 2016 β€’ View on HN

Interesting. That sounds similar to how movie studios maximize profits on blockbusters in order to fund actually good movies (which often lose money).

greenyoda β€’ Jan 25, 2015 β€’ View on HN

I found this article that describes the economics of the movie industry:http://entertainment.howstuffworks.com/movie-cost.htmIn a way, making movies is a bit like VCs funding tech companies: a lot of movies lose money, but the ones that turn out to be big blockbusters make up for it. The highest grossing movie of 2014 made over $300 million.[1]And successful movies can continue to earn mone

kryogen1c β€’ Jul 6, 2021 β€’ View on HN

> The incentives don't line up.this is again "it takes one to tango" - the people create the incentives the studios follow. movies largely make money with sales volume. this is important; tickets arent more expensive for different movies, its strictly a numbers game (ignoring uncommon deals like toys and video games, etc). according to the first link i clicked, marvel's last movie infinity war grossed two BILLION dollars. you are simply wrong if you think some novel, av

tinus_hn β€’ Sep 18, 2022 β€’ View on HN

No, we’re living in a world where piracy and exploded budgets mean every movie needs to be a hit. One flop and the studio is gone. So the studios produce movies that are certain to be not flops, like the endless sequels, and that will draw people to cinemas where there is no piracy, which means impressive spectacles with explosions.

onelastjob β€’ Jul 9, 2021 β€’ View on HN

Before streaming, a movie studio actually had to convince an audience to leave their houses and buy a ticket to make money from a movie. This meant the studio had to pour a lot of money into marketing for each movie. The cost to market a movie could be up $30M to $50M range for a blockbuster movie. For a mid-budget drama like Meet Joe Black or A River Runs Through It, you could be looking at a marketing budget that matches the production budget ($30M production + $30M marketing). These big mark

dsr_ β€’ Jun 6, 2023 β€’ View on HN

No, it's a product of the economics of the system.In 2022, 449 "major" movies were released. Total gross: $7.4 billion.The top ten movies took 3.8 billion of that. Numbers 11 through 20 took another 1.2 billion.You will probably have heard of most of the top 100. No movie ranked better than 161 took in a million dollars. The bottom 80, all together, took in about a million.Nobody wants to pay for any of the movies not in the top 100. How do they back a winner?In ter

IOT_Apprentice β€’ Nov 19, 2019 β€’ View on HN

People vote with their attendance and requisite dollars. Terminator Dark Fate and Charlie's Angels have bombed at the box office. Studios are about making money. They always have been and always will be. I would suspect Mr Scorcese would find the same thing in Bollywood as well.All genres go through cycles in film in terms of popularity. Marvel will have a down cycle at some point. Disney movies lost their way when Disney himself died. It takes leadership, a great script,great acting and

gaius β€’ Feb 3, 2011 β€’ View on HN

Because we're post-wheat-scarcity?No seriously - we are not post-movie-scarcity because making a blockbuster costs a vast amount of money - and much of that is people's salaries, people not unlike you - and it's a risky business (e.g. Kevin Costner might be involved) and if that cost is not recouped... Well the industry is going to go only for safe bets (sequels/remakes).It's like another thread on here at the moment, about it taking 5 minutes to upload a favicon. Sure, but that's not how

thronemonkey β€’ Aug 22, 2012 β€’ View on HN

This seems difficult because what makes Hollywood profitable is the movies they make, which cost big dollars and often license expensive IP from others (think Transfomers, superhero movies, etc.). It seems like the kind of thing that's hard to disrupt on a low budget.

ayngg β€’ Feb 21, 2022 β€’ View on HN

Streaming has hollowed out the non-blockbuster market, so studios need to quite literally go big or go home. Going big means the movie needs to have spectacle that brings people to the theater, which generally means huge cgi budgets that tv series could never replicate on a per frame basis. Superhero movies (and remakes) are exploiting preexisting social capital of franchises to be as successful as they are, otherwise it is really difficult to justify dropping hundreds of millions of dollars on