Whiskey Tango
Avenger
- Joined
- Jun 29, 2007
- Messages
- 25,209
- Reaction score
- 2
- Points
- 31
Undoubtedly - but I'm wondering why the focus on U.S. domestic though? This isnt just aimed at you, I'm just a bit non-plussed that the worldwide figure doesnt seem to get as much recognition on here?
Is it really all about domestic?
It's my understanding that the studio gets a much smaller chunk of the overseas gross, so for them, domestic is where it's at.
To elaborate further -
According to the book The Hollywood Economist by Edward Jay Epstein, studios take in about 40 percent of the revenue from overseas release and after expenses, they're lucky if they take in 15 percent of that number.
Domestic revenue just counts for a lot more than overseas revenue, says David Mumpower with Box Office Prophets:
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.
http://io9.com/5747305/how-much-money-does-a-movie-need-to-make-to-be-profitable