Nasa and others insures their satellites in case they crash and burn and Micheal Flatley,the dancer,has insured his legs for $10 million.A pianist has insured his hands for $3 million,Jordan has insured her breasts for $5 million and so on and on.
I understand you can get insurance for anything today.
The question is can we insure Star Trek 11 against flopping by taking out an insurance policy so that if the film is a flop Paramount can get it's money back for Star Trek 12 to be made.
How much would such insurance cost?
The insurance could be like if ST11 breaks even it would pay out all the money wasted in marketing.If it makes less it would pay the difference,if it makes a profit then if the profit is too small it would pay 6 times the profit it did not make minus the cost of the film thus turning a loss into a brakeven in every case. A special equation could be used to determine the compensation level.
A film must gross 3 times to break even.
So 3 times $150 million = $450 million minus $150 million minus $30 million marketing minus loss of revenue due to flop of film - cost of insurance = net break even point.
You can submit your own formula to determine the level of compensation Pramount would get if it flops.
The best and most realistic formula will receive a non-corporeal gold star.
I understand you can get insurance for anything today.
The question is can we insure Star Trek 11 against flopping by taking out an insurance policy so that if the film is a flop Paramount can get it's money back for Star Trek 12 to be made.
How much would such insurance cost?
The insurance could be like if ST11 breaks even it would pay out all the money wasted in marketing.If it makes less it would pay the difference,if it makes a profit then if the profit is too small it would pay 6 times the profit it did not make minus the cost of the film thus turning a loss into a brakeven in every case. A special equation could be used to determine the compensation level.
A film must gross 3 times to break even.
So 3 times $150 million = $450 million minus $150 million minus $30 million marketing minus loss of revenue due to flop of film - cost of insurance = net break even point.
You can submit your own formula to determine the level of compensation Pramount would get if it flops.
The best and most realistic formula will receive a non-corporeal gold star.
My apologies if I gave anybody the impression that I was typing from a position of authority on the subject. I was merely recounting something I read on TrekBBS.com on more than one occasion, so any corrections by those who actually know something about Hollywood accounting practices would be very welcome.
