Monday, January 30, 2023


August 29, 2014 by · Leave a Comment 

"Not All Box Office Dollars Are Equal" headlines the Wall Street Journal today (Friday) in a feature that points out that the actual revenue a studio earns from a movie varies from country to country during the period that it plays in theaters and varies even more when it is released for television and home video. For example, while much has been written in recent months about record-breaking box office in China, the studios will actually receive only a small fraction of that amount. According to a review of internal studio analyses by the Journal, studios receive only about 27 cents on the box office dollar and hardly anything for TV and home video after ten years of release. On the other hand, in the U.S., a film with $100 million in ticket sales would bring a studio $50 million from those sales and another $125 million from home video, television, and Netflix for a total of $175 million. Paramount, it noted, will realize tens of millions less from Transformers: Age of Extinction than it did for its previous Transformers: Dark of the Moon although both took in over $1 billion. The reason is that the latest installment took in much less in the U.S. and Canada than the former one ($244 million vs. $352 million) but much more in China ($301 million vs. $165 million). The Journal commented that the studios’ efforts to appeal to the fast-growing foreign market can be counterproductive "as Paramount found with Transformers. Producing and marketing a movie with foreign viewers in mind can make it less appealing to Americans."