Soaring film budgets point toward potential downfall for movie studios
Ryan Scott
Budgets for summer blockbusters have been climbing steadily for years, with 16 films having at least a budget of $100 million this summer alone.
This trend appears to be continuing.
According to IMDB, 2015 already has 29 blockbuster level movies announced including a new Terminator film, “The Avengers: Age of Ultron” and a new “Jurassic Park” film.
These budgets are often only estimates because studios rarely release official records. However, documents released by the New Zealand Companies Office revealed that The Hobbit trilogy currently being distributed by Warner Bros has cost more than half a billion dollars already, more than double the original “Lord of the Rings” trilogy.
In June of this year, Steven Spielberg predicted that these escalating budgets will lead to an “implosion” of the current film industry at a panel at the University of Southern California.
“You’re gonna have to pay $25 to see the next Iron Man,” Spielberg said.
He also said that he believes anywhere from three to six of these blockbusters are going to flop and that will ultimately change the way that things are done as it will produce massive losses for studios and may even lead to one or more shutting down.
The budgets don’t account for the millions of dollars that the studios spend on advertising for the films, which sometimes can nearly double the cost.
“Man of Steel” cost nearly $160 million in advertising according to Advertising Age, which had an estimated budget of $225 million.
Phil Bradstock, Film Office Production Manager for the City of Phoenix facilitates film shoots that take place in Phoenix.
“If you want to fire off a handgun or close of a street, it goes through me,” Bradstock said.
Bradstock said that he would like to see more smaller budget productions taking place as opposed to the high dollar movies, because it will add opportunities for films to be shot in Phoenix.
“Ancillary nickel and dime things break the budget,” Bradstock said in regards to why production budgets get so out of hand.
“I usually think a movie is something that I associate with being cheap and fun. If it’s going to cost an arm and a leg then it’s not worth it,” said Vanessa Stanley, a local culinary student and regular movie goer.
“I am just seriously not paying $25 to see the next ‘Iron Man.'”
