Friday, October 28, 2016

Warner Bros & The Profit Margin

(upload.wikimedia.org)

One must understand that Warner Bros. is a company and will always seek out profit. It isn't always pretty but corporate is completely necessary and important in film and the arts in general. In order to profit and thus continue producing films, Warner Bros. must weigh their allowed budget and the expected profit.

IMDB, a reputable source for information spanning from movies to actors, provided information on the recent box office hit, Suicide Squad. According to the details of this movie on the website, Suicide Squad had an estimated budget of $175m. The movie has currently grossed to an impressive $324m. The production company obviously played its cards right and had a sizable profit margin for this movie. This isn't just a stroke of luck, though. Warner Bros. knows exactly where to put their money to make the most profit.

The difference between the amount spent on the film and the profit proves that the system currently in place is profitable. The current model seems to be leaning towards producing sequels or really anything other than something new. Though many complain about this current trend, it is the consumers who really decide what movies are made as wherever the dollar is spent, that decides the types of movies made.

Another instance of this model working is with the Dark Night series. The Dark Night Rises has a budget of around 230 million according to Wikipedia and sold just over a billion in the box office. So while original movies and stories are fresh, exciting and fun to watch when they're done well, the safe route for WB lies in making sequals and such. This isn't to say that these movies aren't good,, though. The reason for such a large profit margin is often because these movies are good. It isn't all bad but in the world of business one must have a cynical eye.