10 Ways You're Thinking About The Movie Industry All Wrong

4. Box Office Bombs

What You Think: A few points ago we told you that just because a film makes its budget back doesn't mean it makes a profit. That's understandable, but surely if a film doesn't do that it definitely can't be profitable, right? Movie studios are pretty powerful and CGI can make just about anything appear real, but they can't magic money out of thin air; for all its craziness the box office is still governed by the laws of mathematics. The Truth: You know where this is going. One of the most high profile box office bombs of all time was Waterworld. Thanks to production issues ballooning the budget, after its theatrical run it had lost upwards of $50 million. Despite that Kevin's Gate is now actually regarded as a profitable movie. Why? Three little words; V, H and S. Although so much focus is put on the box office, it isn't the be all and end all of film money making. The introduction of home video has given movies a new lease of life post-release and with audiences at home traditionally less objective this has allowed films like Waterworld to thrive. Expect John Carter and The Lone Ranger to likewise be less of a mark on Disney's accounts as the years go by.