Quote from: bleau on Sep 21, 2017, 09:21:52 AM
How are you coming up with these figures? I never heard of a film were %10 return right away. I am familiar with 70 to 90 % return right away on some productions. Also what is 30% tax on net profit? Rarely do marketing cost that much, sometimes. I would say a tad lower for most.
Several links here:
http://www.avpgalaxy.net/forum/index.php?topic=57436.msg2236367#msg2236367and other points in the same thread.
Of course, the numbers vary. For example, the dataset used in the last link shows marketing cost at 80 percent of the production budget, but since I didn't include costs for manufacturing, overhead, residuals, etc., I decided to set it at roughly the same as the budget. Also, I could not find the costs for gross rentals.
Finally, because studios and investors are for-profit, then the tendency for them is to greenlight projects that will not only profit but that they believe will be more profitable than other projects that they would have to set aside or reject. That's why I think they will support a sequel not only because it will make more than the current film but a lot more given similar costs.