HOLLYWOOD – The Studio Exec Box Office Report gives you the low down and detailed financial analysis of that insiders need to understand the world of film making. Today, resident money boffin Dr. Elgar Tibbs analyses Avengers: Infinity War.
Avengers: Infinity War cost a lot of money to make. The special effects, the number of A-list stars, people like Scarlett Johansson and Robert Downey Jr and Chris Evans all need to be paid. And paid a lot. Then there are cameras and equipment to pay for. And then you have to hire people to run the equipment and of course everyone needs to eat. People don’t understand this but whenever the crew and the actors have lunch, the studio has to pay for that. So the bills were pretty big. Some of the actors might even request different food and that can be expensive. And all the music you hear in the film was written and recorded especially. They didn’t just play a tape. So that’s an orchestra you have to pay for. Do you know how much that costs? A lot. That’s how much.
But luckily for the producers and the studio, a lot of people went to see Avengers Infinity War and everyone who went to see it bought a ticket. Guess what they bought a ticket with? That’s right: money. So that money could be used to pay back all the people who had loaned money so the film could get made. But so many people went to see the film that all the money was more than the money it took to make the film. Even Scarlett Johansson’s enormous M&Ms bill. We economists call this extra money ‘a profit’. Avengers: Infinity War made a profit. That profit comes in the form of money.
The studio also got money from all the stuff that was sold like lunchboxes and toys and comics and stuff which had Avengers Infinity War written on it. They didn’t even have to make that shit. Someone else made it and then paid Marvel to put the name on. Crazy right!
We can see now then that Avengers: Infinity War cost a lot to make, but it made more money. A lot more. So it is what us economists call a ‘hit’.