I was sent a link today about this article from RADAR magazine. Looks like Spiderman 3 costs are piling up like a mountain above the clouds. If you have not read the article please do so – it is great. Here is an excerpt from the article; continue reading the full story HERE:
An agent at CAA, which represents Raimi and Maguire, insists the film’s price tag is irrelevant: “Sony could spend $600 million or $700 million, and it would still be worth it.” People shouldn’t think the studio is blasé about rumors of its reputation for extravagance, he adds. “They’re sweating bullets. They’re dying with every dollar they spend. But even if the margin isn’t quite what it ought to be, it’s still incredibly valuable to them as an asset. There will be a Spider-Man 4, and that’s what keeps them alive.”
The cost of films keep going up, I am guessing in an attempt to create the bigger blockbuster. If you have to spend 500 Million to make 1 Billion is it worth it – I would say so. Historically, for the most part, this gamble has paid off; but the day will come when a 300+ Million movie will tank, and that is when things will get interesting. That will be the day the rivers of money dry up.
For those with foresight – the drive to make less expensive films should begin now. Although 300 was not cheap, it came in under 100 Million, which is pretty huge considering it was full of special effects from start to finish. This should be seen as an example of proper money management, and mighty margin collecting.
For films with little or no special effects 10 million should be a reasonable budget. I may be ignorant to the cost of film making but if you gave a guy 10 million and set it as the limit, I am pretty sure a movie will be made. Part of the beauty of a smaller budget is that it forces you to make magic happen within your means – that is good for the bankers as well as the story tellers.