If a film made box office of say 700mil, where does all the money go? If it all went towards the movie making company, for example disney then why is it that disney only made 2.4bil in a quarter when they made several major films during that period in conjunction with other revenue generating things such as Disneyland?
Responses (1)
It all depends on the 'Deal' made between Studio, Producers, Distributor, Talent and those involved in making the picture .
With Studios, the Producer's are most often on 'staff' or 'hired' to produce the picture. They are either paid a flat fee or a % + points in the box office gross. The Studio is also most often the distributor or owns the distribution company who has a vested interest in the production of the picture and will receive a % or points in the gross box office receipts.
Talent can, and in most cases, play an important role in where the money goes. For instance if Tom Cruise does a Quentin Tarantino film he will be paid a certain amount plus receive points in the gross box office return.
Then you have people like Executive Produces, Co-Producers, Associate Producers who have all played a role, some where along the way, in the financing and/or production of the film and need to be compensated for their work. Even crew members like Line Producers , Production Managers even Location managers who bring something to the table that either cut the cost of production or make a significant impact on the picture can receive a cut of the gross box office return.
It all depends on the financial deal made.