LOKAI of CHERON wrote:
I can't see how you can "factor out" marketing costs? Where would you divert that investment in the accounts? Unless Paramomt have an overall annual marketing budget for all releases, which could be accounted for separately.
The 'cost' of a film is, unless things have changed drastically this century, what it cost to get ONE answer print (finished print.)
ALL copy costs, both celluloid and digital, are part of the 'prints and advertising' budget, a whole separate set of books.
Breakeven of 2.5 times budget (the cost of one print) has been the generally accepted number, with room for lots of variation. I remember reading an accounting Stanley Kubrick made which showed that it was possible to not break even till 9 times the film's cost was generated!
It could be with advertising costs becoming so huge that all this is being recomputed in a different fashion, but I'm not aware that this is the case. Certainly print costs are dropping because there are so damn many digital screens, but whether that offsets the multitude of ads and their cost (have seen the ship fall into a cloud about 600 times while on yahoo main page in the last day, without clicking anything Trek related), who knows?