When a movie earns less than its budget, who really loses?

1. 60

   Steve Orionposted 12 years ago

   When a movie earns less than its budget, who really loses?
   
   The actors and writers are paid as part of the budget, so who loses money when films tank?

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2. 79

   Mitch Alanposted 12 years ago

   The Movie company, such as New Line Cinema and it's investors lose money.  But, this only happens if Box Office sales, DVD sales and merchandising fail to produce a profit.

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3. 71

   MikeR1posted 12 years ago

   The investors, movie production company and anyone who is getting deferred payment and/or percentage points from the film's profit.

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4. 60

   jolinabettsposted 12 years ago

   The producers. They're the ones who invested on the rights of the movie and the whole production.

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5. 85

   samislamposted 12 years ago

   The investors backing the studio, but it's usually pretty rare for a movie to not turn any sort of profit, even if they tank at the box office.  Rental licenses and such usually allow films to rake in little bits of dough over the course of several years.  It's not the immediate satisfaction the studios are looking for, but it keeps them in business.

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6. 59

   GPAGEposted 12 years ago

   Everyone involved loses money (studio, investors, actors) including anyone who has backend deals or percentages in the profits. Actors lose also if they take less salary for part of the profits.

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7. 60

   yaswanthkposted 12 years ago

   It's definitely loss to the entire team  who played in that movie....it's either on screen or off screen...

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