5 ms·

How does that work?

• HWR_14 11mo ago
  Production doesn't include advertising or distribution. Advertising can often equal production costs. And box office revenue gets distributed to several groups, not just going to the people who own the movie.
• codyb 11mo ago
  Presumably there's a fair amount of additional costs involved in marketing and distribution that aren't accounted for in the production figures and this ends up being a good baseline for a fuller accounting based on industry trends.
• HDThoreaun 11mo ago
  cost doesnt include advertising which tron had a lot of and studio has to split box office with theaters.
• Gormo 11mo ago
  A Hollywood production often involves a huge number of distinct business entities in a complicated network of relationships with each other. Oftentimes, a specific business entity is set up to coordinate a single production, and that is the entity that reports the profit/loss for the entire project -- the project's revenues can be spread across lots of other entities, while its expenses are concentrated in that central entity, producing a nominal loss in their accounting records even if the movie as a whole was extremely profitable.