Before this company pours a load of money into a production, a budget must be finalized and Warner Bros does this exceptionally well. With information from Wikipedia on "Film Budgeting", any well put together budget must be divided according to the importance of each part, in this case it would be actors, settings, post work, etc. Also, Warner Bros must use gross budget as opposed to net budget since they cannot spend money that they do not have. Wikipedia (https://en.wikipedia.org/wiki/Film_budgeting)
How does Warner Bros pull this money game off?
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Every year Warner Brothers entertainment makes a couple of million dollar decisions. Through the vast expanse of Wikipedia articles, I found one that explained the costs that goes into budgeting for a large scale film production, like those in which you would associate with Warner Bros. The article explained the numerous costs in detail and gave specific examples of movies and their budget costs. Using Wikipedia is resourceful and reliable considering that many educated individuals can share their knowledge collectively, in one place. When Warner Bros budgets they must consider the basic following: Rights, equipment, places, talents, crew and pre and post production. All of these aspects accounted for allows for a successful production.
When budgeting for a large scale film production, the production company, in this case Warner Bros, must consider the following and more: story rights, screenplay, producers, cast, directors, music and post production. A gross budget is the realistic budget in which a production company must work off of. This kind of budget is defined as, “the grand total of actual spending to produce the project and not to be confused with net budget, which represents the final out of pocket for the producer after government incentives or rebates”. Net budget in this case would be the profits after the film which can very greatly.
Warner Bros must also consider many more things when budgeting for films aside from just the money in the film. The company must first chose which film to produce. This decision is the first and most important because the time and money spent on these films cannot be wasted as Warner Bros would lose a lot of money. A film like "Suicide Squad" took many years to make but made seven times as much money as was budgeted in which means that Warner Bros did their job right. But that then begs the question; how does Warner know which films to produce?
