Excerpt from Dennis Toth's full article on creditspectrum.com.
"...So the box office figures for 2011 were still being sorted out, along with the various excuses, mutual blaming, general rounds of finger-pointing and bogus claims of victory. For example, Paramount Pictures is already claiming to be the number one film company in gross for the year with $5.17 billion in US distribution ($17 billion global). Of course, they spent something in the neighborhood of $1.4 to $2 billion in production and, most likely, several more billions in promotion and distribution, which means that the US box office roughly paid their costs and the rest became profit thanks to the current generosity of the global market. But it is still a profit (though made the hard way).
This is something you’ll want to keep in mind while looking at the current report from Box Office Mojo of the top ten major box office hits of 2011. Especially the fact that the vast majority of box office is now being generated overseas, often by a margin of 2 to 1 or even 3 to 1. Likewise, the actual rate of return is pretty thin due to the cost of production (a more detailed critique on this and other issues can be found in Mike Fleming’s excellent piece at Deadline.com)..."
Read the full post with links to other worth reading posts here: