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To: Coronal; AmishDude
The costs have already been recouped from foreign sales. The domestic gross will be pure profit.

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I want to dispell this inaccuracy. BBM cost $13 million to make. In order for it to recoup that amount in foreign sales (deals are made for a fixed amount by territory) under standard terms then the foreign sales deals would have to have totalled at least $26 million (and under the more likely 60% to the SA deal - $32 million). The Foreign Buyers are out swinging for this amount and need to more than double that number in their territory's box office for them to break even. That means that they would have had to believed that BBM was good for over $50 million at foreign BO in order for the deal to make sense.

The comment that domestic grosses would be pure profit is absurd. Fifty percent of gross BO stays with the exhibitor. The remaining fifty percent goes in totum to the Distributor until all of his costs (prints and advertising) are met plus an additional 15% (typically). Then the Distributor and the Production (there are five credited production companies on BBM) split their half of all subsequent dollars 50/50. And, all deferred payments and participation must be paid before the production can start to pay down the cost of making the film.

That is why break-even is usually calculated at 250% of the cost at a minimum.

BBN will lose big time.

142 posted on 12/18/2005 11:45:56 AM PST by wtc911 (see my profile for how to contribute to a pentagon heroes fund)
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To: wtc911

Does this mean that King Kong has to make $500 million?


143 posted on 12/18/2005 12:10:32 PM PST by AmishDude
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