Bruce Malone
Superhero
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- May 23, 2009
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I still have a hard time thinking that anyone truly believes movie studios are only getting 15% overseas. The masters of accounting are willingly letting go the majority of their money? No.
Here is an explanation for why getting money from foreign releases are tougher:
The reason for this is simple. Collecting revenues abroad is a trickier proposition since the dollar fluctuates against foreign currencies. There are also tariffs from these governments in place in order to keep as much money as possible from leaving their countries and going abroad, which is an understandable practice. While the global conglomerates such as Fox, Disney and Time-Warner that run major Hollywood studios can secure sweetheart deals with various local governments, it doesn't happen for each film. As such, international box office revenue is much less reliable than in North America.
While i'm sure the 15% figure fluctuates, i've however hunched for a while that domestic profits do count for a good deal more. You will notice films that do well domestically but no so much overseas still tend to get sequels sometimes big ones.
The star trek reboot is a good example. It made only 127m overseas but it's still getting a probably near 200m budget sequel due to it being seen as a great success.
On the other hand films that flop domestically but do well overseas rarely get sequels unless they have made an insane amount of money overseas.
So again using star trek as an example if it has instead made 127m domestically and 257m overseas it would likely be seen as a failure.