How are films payed for?
I don't mean some 14 year olds $50K student film but rather for lack of a better term a major motion picture. For example there were rumors that the 2 upcoming avengers films being probably shot back to back would cost around a billion, which isn't surprising the first had like a 200M budget and your including stuff like international promo but are the film distributors getting a credit line? Everyone is in debt but there's good and bad debt. For example Columbia relys on SPE who rely on Sony corporate in Japan. Sony has a equity of 2.497 trillion yen but their net income isn't that healthy compared to like a Comcast who own Universal. If this were a universal release would legendary be forking up some money to universal of course they'll take distribution fees but how is this all paid for? Mother ******* are in debt, are credit lines involved?
- VoelvenLv 73 years agoFavorite Answer
The money can come from a number of places. Many countries have government grants that support film making, there are also several international tax deduction schemes, investment schemes, loans, product placements, pre-sale rights etc.
So while these large movie budgets can seem crazy, they are a huge international business.
- AdamLv 43 years ago
Well, studio movies are paid for by the studio or production company, and then they get most of the profit. Make no mistake, very few studio movies don't make a profit when you figure in foreign markets and video sales. Even most "bombs" still make something (just not as much as they want).
Smaller movies can be backed by private investors. Some people take loans. Kevin Smith sold his comic collection to pay for Clerks.
- SquidmasterLv 73 years ago
Simple business investment.
People put money into a proect, on the belief that it will be successful and they will get profits in return.
- Anonymous3 years ago