
According to an SNL Kagan study of films that received a wide theatrical release, films with production budgets of over $90 million actually generated higher returns than less-expensive films.
The study, "Economics of Motion Pictures," analyzed 764 films released on over 1,000 screens from 2004-2008 and included 83 films with budgets of more than $100 million. Of the films studied, the most expensive films were the most profitable for the studios, with animated films leading the way followed by sci-fi and fantasy.
Although these numbers might steady a studio head's hand as he/she writes that big check, the study did not factor in marketing expenditures.
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