Movies and films involve a high creation cost, this raises the question of why. Budgets can be from as low as 18 million dollars with others going beyond a hundred million dollars. The average movie creation fees are $18, 000, 000, while there are high budget casting such as Avatar, a movie produced in 2010. Money in motion pictures is used for various things and amount used depends on several aspects. The expenses are divided into creation prices and marketing prices where output costs are normally higher.
A flick with an expensive cost of $200 million can spend 60, 000, 000 more on advertising. This is because the production is invested and it should sell to rake in profits. The actors and actresses are paid, in order of their seniority from the leads to supporting parts. Five percent of expense fees go to the writer and scriptwriter. Production management, directors, all the crew is paid from production expenses, including skilled, unskilled.
Sourcing of the equipment needed for the shoot such as makeup artists, clothes, places they can act in are taken care of here. The budget should include the salaries of the crews such as props carriers, setters, personal assistants. The amount of money spent on actors depends on how prominent they are. There is a stipulated income of $859 per day but renowned artists get more. Screen; scriptwriters whose work is on-demand are paid more than amateurs.
This generally affects the final value of creation as films with less known artists can cost less than those with prominent artists. After acting, there is video editing, the use of special effects. The cost of explosives for fast-paced movies, consideration for safety increases the costs. On average, a movie taking 120 minutes may have been recorded for longer, through edits, the unnecessary parts cut out.
The film used in the making of films is expensive while producers can use 15 times film of the outcome, in turn, this means more expenses. Type of casting also affects the costs involved, most expensive are sci-fi movies because they require screen effects. Adventure, fantasy, animated movies also make into high creation cost movies. After that are horror films, romance, and music-based castings. The marketing charges are separate from the production fees, hence final fees are more than mentioned.
When a cinema is produced, it must sell more than its expenses, that is making fee added marketing fees. This does not mean that every movie makes a profit because there are high expenses cost casting that have caused losses or raised low income. For instance, you can invest $200 fortune movie and the movie generates around $30, 000, 000. It may look like you made a profit but after subtracting marketing fees you could remain with 30 million.
Other flicks have mademajor returns on their investment. They spend high figures in their productions such as Lord of the Rings and Return of the king which used a small fortune, making returns of over one billion. Avatar had a high investment of $237 million and ended up raking over two billion dollars.