The Business of Entertainment or Hollywood’s Spending Problem
As we enter summer it is time for Hollywood to bring out some of the biggest movies of the year. The screens will be dominated by movies whose production budgets start north of $100 million and soar to $280 million for Avengers: Age of Ultron. These numbers do not include the estimated additional $100 million spent per movie for North American marketing plus another $100 million for international marketing. However, the returns can be just as staggering with early summer entrant Furious 7 taking in $1 billion in a record setting 17 days.