What goes into a film budget?

What goes into a film budget?

A budget is typically divided into four sections: above the line (creative talent), below the line (direct production costs), post-production (editing, visual effects, etc.), and other (insurance, completion bond, etc.).

How much of a film budget goes to actors?

The studio gets 40–60\% of the distribution money. If it makes $500,000 the first week the studio gets $200,000 somewhere down the line. Depends on the contract with the distributor.

Who pays for making a movie?

Most films are financed through a combination of investors, tax credits, grants, and other sources. This funding must be secured (usually by film producers and sales agents) at the beginning of a motion picture’s development, in order to pay for all the costs that accrue during the making of a film.

How much does it cost to produce a major movie?

The average cost to produce a major studio movie has been around $65 million. But the production costs don’t cover distribution and marketing, which adds another $35 million or so, on average, bringing the total cost to produce and market a major movie to right about $100 million.

How do film studios spend their money?

Even though specific numbers are hard to nail down, we have a good idea where studios spend their money. A film’s production budget includes all costs incurred during pre-production, filming, post-production and promotion.

How much does it cost to sell a movie?

When calculating a marketing budget, the rule of thumb is to spend 50 percent of the rest of the production costs (pre-production, filming and post-production) [source: Vogel ]. So if a movie costs $100 million to make, you’ll need an additional $50 million to sell it.

Are all movies Money Makers?

But this huge figure doesn’t mean that all movies are money makers; in fact many movies end up being losing bets. Indeed, although there are thousands of movies made every year, only a percentage of those become feature films with the big budgets we often associate with the Hollywood movie-making business.