The Analysis of Production Cost and Business Return in the Film Industry: Taking Eternals and E.T. the Extra-Terrestrial as Examples

Abstract

This study is about the film industry and it introduces several major components of the cost of the film, and explains and divides each part in detail. It shows which parts can determine the film budget, such as investment threshold, the market risk, the business return. The research reveals that how a movie can be successful and could have a business return. It also explains why there is such a big gap in the production cost between the film and the film, and divides it into several parts, such as different sizes of production companies, the difficulty of the film which is going to be made is different, as well as the time and place of shooting, and each part is given an example and explanation. Finally, the two films, E.T. the Extra-Terrestrial and Eternals, are also given as examples to make the point of view more specific and easier to understand.