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In 2019, Hollywood's global box office revenue peaked at 42 billion USD – the highest figure in film history.
But just one year later, COVID-19 caused that revenue to plummet 72%, hundreds of theaters closed, and the whole world had to wait another year to see No Time To Die release.
In reality, Hollywood has shown signs of decline for a long time.
Ticket sales in the US have been declining continuously for two decades, even as population and ticket prices have increased.
The question is: if fewer people go to theaters, why has industry-wide revenue still grown year after year?
→ The answer lies in Hollywood's complex financial structure.
There, each film operates like an independent company – raising capital like a startup, receiving tax incentives from the government, and profiting from numerous ancillary channels that audiences rarely see.
A film can gross hundreds of millions of USD but still be 'in the red on the books'.
And a theater can survive not thanks to movie tickets, but thanks to buckets of popcorn with an 84% profit margin.
To understand why the 'Hollywood dream' survives every crisis – and who really makes money from it – we must view cinema not just as art, but as a globalized economy.
In today's blog post, Viet Hustler will dissect the money flow behind Hollywood's glamour with you.
Hollywood: History of a Global Industry
From Idea to Screen – The Financial Mechanism of a Film
The Dark Side of Cinema: Hollywood Accounting – The Magic That Makes Films 'Lose Money'
Profit Tiering System – Where the Real Money Flows
Studios - Theaters: Who Are the Real Losers in This Game?
Comments (1)
Lau lam roi moi doc 1 bai viet rat thu vi. Hy vong tac gia va Viet hustler cho ra nhieu bai viet nhu vay hon. Cam on tac gia.
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