Why DVD’s Make Or Break A Movie Studio

“A typical studio movie costs nearly $100 million: an average of $63.6 million to make and $34.4 million to market. Theater exhibitors – Regal, AMC, Loews, and the like – generally keep 50 percent of their box-office sales, which means that a movie must sell nearly $200 million worth of tickets worldwide to return $100 million to the studio and thus break even in its theatrical release. Since few movies earn that much at the box office, the studios have increasingly relied on the home-video market, where the equation is much more in their favor, to help recover losses and make a profit.”