the, the while hollywood has dominated the film industry for a 100 years, the international movie industry is growing by leaps and bounds. today we have bollywood in india, k dramas, and see so it's coming out of asia and tele, novelle as from latin america, just to name a few. but can any of them really compete with hollywood? i'm christy, i'm. you're watching the cost of everything we're today. we're going to take a look at the cost in various markets to produce and film, and the other movie markets have the potential to overtake hollywood in the future

. the. it is estimated that in 2021 the motion picture and videos industries in the us total of the $66000000000.00. now the average cost of producing a film can range from a few $1000.00 for low budget independent films, to hundreds of millions of dollars for high budget hollywood blockbusters. now the standard film budget hinges on a few factors like screenplay, task crew, location, special effects, and marketing. film expenses are usually divided into 3 main categories. pre production, production and post production. now production accounts for a significant portion of the overall budget. often randy, from 30 to 60 percent of the total cost. this involves expenses related to hiring, cast, and crew security locations, building sets, ready equipment and other logistical aspects. the post production is the other most expensive part of them creation as it includes special effects, editing,

sound design and colored writing. and this also depends on the text, film, skill and the special effects required. finally, you have the promotional efforts where you have advertising and publicity, and this comes on time match the cost of the actual film itself. hollywood is famous for is co loss of budgets, but the average film budget for an independent movie is significantly lower. for example, hollywood avengers, a city wars cost, approximately $400000000.00 as compared to the other horror films get out which costs only $4500000.00. now both of them achieve massive success, both critically and commercially, like get out spent far less on production aspects. other movie john roads that are, notice we low budget films, but in the movie theaters are usually the hor, inquiring movies, like the blair witch project. today, hollywood is

a huge share of the world entertainment market. more than half of the audience has for many blockbuster sales from outside of the us. however, there is growing asian competitions for the film industry. today we're joined by phil maker, sean stone to explore the glitzy world of movies. now shawn, the movie industry is known for as multimillion dollar budgets. could you provide some insights into what factors contribute to the high cost of producing a film from pre production to marketing? yeah, it's, you know, it's a good question. it's something that i, as a producer, as when i mean by 1st documentary uh, was qualified against the time it was about my father making the film alexander, which was uh at that time, a pretty big budget movie. it was like a $170000000.00 or something like that, which is, uh, you know, nowadays, i think small compared to some of the, a lot of the marvel films and, uh, you know, these big, these big epic movies. right? they're making, they, they make them for like 20250000000 and more so where does the money go?

i mean, these think about and the amount of people involved in these productions, the, the amount of crew you're talking hundreds, if not thousands of people working for months. because there's the development side of a story, which is, if you, you know, let's see. yes. if you're a number of people like a few writers, but when you get to that place of the designing visual effects, right, that are design costume design. um, you know, you started talking about hundreds of people developing something for months and then going to work every day, you know, for maybe anywhere from 9 months to sometimes a year and a half. because nowadays you think about all the visual effects. that's the, the, the computer generated imagery that you see in, in these movies, right? the source tv shows even. and so that, that requires thousands of at least hundreds of people, sometimes thousands of people working on it and doing everything from, you know,

small touch ups to people's faces. actors faces all the way down. so there's a lot of people involved in, in building and constructing and designing and making, making a film happen. but most of those people are not making a big budget. so necessarily, right? they're probably making, you know, maybe a few $100.00 a day or maybe a $1000.00 a day. so that, that's some aspect of the but to the, the, the bigger numbers tend to go towards the actors. you know, the people that we consider stars, right? so the director of the writer is sometimes to with the, to a certain extent, maybe not as much unless there are really famous writer and uh, the producers. and then these, like this often times if it's a studio film, then the studio has their they call overhead. right? that they're basically, um, taking their car, you know, they're kind of, they're making their money with you name at the development side of it. uh,

renting out studio spaces, uh, renting out facilities, you name it, renting and equipment. so, you know, again, it's, it's, it's a large, large process to make a movie. it's not just writing a book, you know, it's, it's one to 3 people. you know, one editor, you know, that kind of thing. it's a very small number. painting a painting. it's usually one person. making a movie, you're talking hundreds of thousands of hundreds to thousands of people to nelson production and loss, various expenses, including cash, salaries, equipment, location, and special effects. housing is cost vary across different genres. and what steps do studios take to manage and optimize these expenses? yeah, so, so mean when it comes to film, remember that we talked about nowadays the productions of being like the, what they used to call like blockbusters, you know, 10 poll blockbusters like tomorrow. ringback movies or the star wars movies, and those. now we see the budgets around 200000000 and that's just for the

production. and then you talk about like the, the dna after you even mentioned that, you know, that's the publicity, the advertising, right? the billboards, the, the, the commercial spots and putting it on radio, putting ads and getting actors, you know, to events around the world. right? traveling the actors, the different events, at least. that's another 100000000 or more just advertising. so that's for the bigger movies in terms of, uh, lets say in the there's, so there's an interesting place where the studios tend to focus more on the big stuff because they want, you know, that justifies their budgets. that's uh they tend to be a little bit safer. you know, because it's a big, that's a big audience. although we're seeing this past year, maybe you know, he didn't. jones, in the flash and transformer is maybe they don't have the same audience that they used to have. right. and so they're spending to 2 or $300000000.00, and maybe it's,

it's not worth it. i think that's that they're in there and they're having to reassess. right. this is not the old game that it was the last, a pre cove it right when you just put out a big blockbuster movie and you know, you'd make a $500000000.00 to a $1000000000.00. maybe it's a little bit different now people maybe tired of those. so you have, you know, so the studio system was got really used to just doing the big budget stuff and then acquiring the more independent projects that you could see like um, you know, like so many examples of, of smaller films, you know, maybe that don't have as big a budget because they're more contained in maybe like 510000000 dollar movies, 20000000 dollar movies. right. the dramas, drama is usually are in this, this category. you know that because they're not going to spend a $100000000.00 usually on a drama unless you have a tom cruise as a star. you know, because it doesn't. you don't need a big star for a drama. um and then horror films also have been very successful traditionally

because they, they tend to be done for like, you know, $2000000.00 to $5000000.00 maybe $10000000.00. and they, as we see traditionally if they're done well, you can make easily a $100000000.00, but $10000000.00 movie. so that's going to show you a lot more profit. and so again, the thing i, i believe is that the systems are changing. you know, the secure systems start, stop, have dropped a lot of the smaller projects to focus on the bigger so anything, maybe they're come, they've been have to come back around and say, well actually it may be, it makes more sense to, to do the, the, the the smaller films, the dramas, the, the whole, the heart of the, the drillers, the adventures that you don't have to necessarily spend a $1200000000.00 to make. and we can still make that money. it seems that marketing and distribution are significant contributors to a fields overall budget. how do these costs impact the success of a movie? and can you discuss any strategies use to maximize returns on marketing investments?

yeah, i mean you, oh it's, it's an interesting question of how you know, how, how a film can be success. ready without marketing, because you know, you think about one of the great examples of marketing was like per animal activity think, which was a little movie you remember that was done for like $30000.00 or maybe 70 $1000.00 or something very small. but um, because uh spielberg and uh, i think paramount got behind it. and they basically, they marketed for like $30000000.00. and what happened it was, it caught fire, right? because everyone, these are great marketing campaign of a fresh, different horror film. and they went to see the movie and it made, i don't remember how much 10200000000 or something or more that that's probably one of the biggest successes the whole time. so, because if you think about the cost, the cost of production to the actual revenue in net net, the revenue. so as far as sounds, you know, marketing. the question is,

can you have a successful thing without it? i think the interesting thing is like the sound of freedom, which is movie, they came out this past year that was done independently of none of the studios wanted to pick it up and distributed angel studios, which is an independent studios. it's new company, basically distributed. it and i don't think they had a big marketing budget. i might be mistaken. but they still because of word of mouth, because of the sort of the grass roots you could say the grass roots audience that had heard about it was talking about it and wants to see it the same basically saying would hunger and buy your ticket for your friends, you know, help people to can't afford it to go see this movie in the theaters. and it did like a $100000000.00. so you see 2 different strategies, right? one where you spend a lot of money marketing, getting people to get excited and often and then that strategy fails so many times

with, like i mentioned the flash or the transformers or indiana jones, you know, movies that may be, you know, there's been a $100000000.00 or more marketing it and probably did not do as well as they were expecting hollywood a bollywood r to the world's largest film industries. how their production budgets and hollywood compared to those in bollywood. and what are the key differences and cost structures between these 2 giant industries? so, you know, bollywood is so interesting to me because it's a bigger they make more films than hollywood if i'm correct. and i think nigeria even even bigger. but when they say they make more, doesn't the doesn't necessarily mean the quality is always is good. that said, i've seen the bollywood productions. i've gotten so much better overtime. and then now they have, uh, the new movies that are coming to netflix and hulu, and new tv series that are just the same quality is, is what you'll find in, in hollywood. so i, and i'm sure you know, again,

i don't know bollywood well enough to say how it compares. i'm sure that their budgets are not as big even their big budgets are not as big as a you know, 200000000 dollar us productions. i buy that the same time we think about how again going back to the visual effects, how it this is changing since even in the whole playing fields. right. so if you have visual effects, companies that are doing the work for hollywood, but some of those visual effects companies are based in india or korea or you know, other other countries. then they basically they have the ability to, to do the same quality of work in those other countries as they are doing in america. and so that's really where i think things are, are they coming more balance? because again, in the past, you know, the acting quality is available in any country. you know, people can be, can be good actors. and the productions, you know, it may not have be as and have a cost as much, but you don't need, you know, it's, it's all relative, right?

the, the cost of labor in india is going to be different of the cost of labor in california . but um, now with c, g i, this really is changing the, the nature of how you can make a movie. and so you can do is something a very high quality in, you know, in basically any country, if you can generate the imagery, the visual effects, imagery and such that, that it could be a blockbuster. thank you so much time, but please stick around. filmmaker sandstone will stay with us right here after the break. and when we come back in recent years, hollywood has been challenged by other countries as a leader with a thriving film and tv industry. so what countries are shining in this industry? we'll have more after the break the

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the global film industry could be divided into 2 broad categories, producers and earners. historically asian countries accounted for most of the movies made world wide for nations, india, china, japan, and south korea are among the top 5 producers along with the us. but the amount of money each market mix out of their production is completely different. the us as the leading country by overall field entertainment, revenue grossing more than china, japan, the u. k. and germany combined in 2020, due to the corporate pandemic. china over tough north america as the world's biggest box off as being the 1st country to achieve the status. it's revenue turnover total more than $7000000000.00. and so, and at a time to protect the burgeoning film industry in china, the chinese government imposed a quote to allow the screening of

a certain number of foreign films each year. meanwhile, it has also made significant investments into hollywood, as it has seen how hollywood films help to sell the american culture to the world. now china knows that if it wants to expand it's rich and cultural exchange, it needs to be in the form of movies, tv shows, or music. meanwhile, japan has a film industry that spends more than a 100 years. it has signature drawn rows, like animals that has been exported all over the world. she died becky, period pieces and cold horror films. while some animate is hand drawn computer system animation techniques have become quite common in recent years. and i'm a often draws influence from the manga light novels and other cultures. on like western cartoons animate as a genre, isn't marketed towards or even created for children. a show that may have

a seemingly simple surface plot oftentimes features a far more complex and deeper story line and character development. today the most likely candidates challenge hollywood for the lead is asia, india, and china together both not only a 3rd of the world's population, but they have a thriving film and television industry. while hollywood release is about $250.00 commercial films a year in the alone crimes out $800.00 to $900.00 films, india is the largest producer of films in the world and is the 2nd oldest film industry in the world. the indian film industry is multi lingual and the largest in the world in terms of ticket sales. but the 3rd largest, in terms of revenue, mainly due to have a among the lowest ticket prices in the world to the industry is viewed mainly by a vast field going indian public. although these films have been gaining increasing popularity in the rest of the world. notably in countries with

a large number of indian ex pats films like dongle has overseas growth, revenue of $260000000.00 while the buy who bodies, serious cost over $370000000.00 globally. so for this and more, let's bring in again, filmmaker johnstone now shawn, in recent years, chinese companies have made significant investments into hollywood studios and production companies. how do these acquisitions impact the global film industry and what motivations are driving these investments? sure, um so yeah, i mean, there was definitely a point where it seemed like the money was going to be coming from china and into, you know, into california into, uh, not just into the, the film company like amc, i believe was, uh, uh, i think was wanda, that, that kind of controlling interest and amc and uh and obviously in california in general there's a lot of money from china. um, but actually

a lot of that seems so changed. i don't know if the chinese economy is, you know, is taking it as it did some problems because of the coven era. and um, the actual, like i understand right now trying to is real estate market is, is getting some real problems and their financial system is having problems kind of like us. thank you. system. so i don't see a ton of necessarily driving the force of the film investment. in fact, i wonder if to the overall attitude that i was, i was told basically within hollywood was they, there already have some financial issues. they were already looking at the cost cut before the strike. so in the sense of the strikes serves. that's why they, they haven't made a deal yet. the studio. and i mean to deal with writers because living studios wanted to cut costs anyway. and so they are trying to figure out their financial system going forward. so right now, it's like a huge pause in it. you know, this is a massive stop, a product, you know, reduction really. i mean,

on the mass over 3 months now, without, you know, without writers working without, without side, you know, actors working on big projects, maybe some smaller things are happening, but it goes to show there's a, i think there's some quandaries about like, where's holly we're getting is money going forward and, you know, trying to really make the most sense. so, how sustainable this is economic system is when, you know, the old north model of the box office is not necessarily as stable. so the streaming, so the idea of making money from streaming is, you know, it's pretty steady for studios, right? they have pretty steady income from streaming because they know how many subscribers they have, you know, in a month to month basis. but that, you know, when it comes to then making the, the filmmakers, the storytellers, happy. that's the hard part because that's why that's a major aspect of what they're starting. striking about is to say, you know,

in the old days you get royalties from tv and, you know, whatever video and other rerun cycles nowadays, you know, you're not getting that, that back royalty from your production. so often times you're just looking to, you know, make a film at a certain price and make maybe a little profit on it. so maybe it doesn't have a windfall profits that people use to see from the film. and so again, i don't know, boy, forward how china is gonna play. and so you do us a film production process. any time is got its own issues to worry about right now . and yeah, i think, you know, just in general, we're all looking to see where, you know, where is the film industry going? what, as far as hollywood is concerned, because i think the global market is still going. and obviously, foreign countries are still producing and making movies, no problem. why any characteristics this thing with china's film industry from hollywood and bollywood in terms of production, practices, storytelling and cost considerations. yeah, i mean it's a little, i mean it's,

it's unclear to me. um, you know how the chinese system works. and i, you know, i think the biggest problem with china is, is censorship. as far as what i've observed over time. is that, um i think india has some more, you know, some censorship around morality. sure. like i don't think they show new to the or, you know, certain like, well, garrity right, they're pretty, they tend the pretty team when it comes to these kind of things like china is censorship tends to be around content, right. things you can't talk about, you can talk about spirituality basically, you know, you can talk about the, you know, goes to spirits and, you know, things like this when they're producing their, their movies. um there's, there's, there's also nationalism in this and chinese and them all right. as far as like, you know, they want to sell their country and make it look good. but, you know, if you, if you, if you sense or history,

or you don't want to talk about the culture revolution and you know, the problems of communism or whatever, right? then you're, you're stifling freedom of creativity. so for me that's, that's still a problem. when it comes to the chinese, a production process, they don't have the independent cinema. that is so vital for a country to, to create for creative people. you know, you have to have dialogue and when you have censorship, you know, doesn't, doesn't work for creativity. creativity has to be willing to push the boundaries by to expand people's consciousness to see from different perspectives. challenge that so that same problem, censorship, other ways in way in ways come to america. it's not written. maybe the same way. it's not so written. it's but it's unwritten. write these ideas or even sometimes it is written the censorship. like, you can't get an oscar now and this half you're casting grew is a minority or something. right? i mean, how crazy is this?

this is like a chinese just the of censorship. truly, because you're no longer making it about the creative process and the all and the, and the, the product it's, it's about how it appears. right? it's about professionals with like your, you know, you're following the, the no communist party dictates of, uh, you know, who can show up on the movie or not. that's not a good. that's not a healthy thing for hollywood to be facing. is that kind of censorship and i think it applies to other aspects of hollywood culture. you know, as far as you know, there's so whole for concepts, right? it's, you know, it's limiting of, of, of the creative experience because it comes to self conscious. when you become too self conscious, you can no longer be creative. now you become nights, you're a performer, basically you're just there to perform. you're not there to actually be genuine and to be real. so i think hollywood is hitting that problem in the, you know, has some of the back, as i mentioned, they have some censorship, but um,

i don't know as far as that industry. i think it's, it's a pretty it is hopefully expanding with more independent production again, just because of the nature of digital cinema and everything is going on the revolution of digital, you know, that they're going to have more independent voices. i'm sure that will challenge that as well. and um yeah, me, you think about some of the countries that have had the best quality of production consistently of less than 2 decades. it's like south korea and um, i think that has to do with their, their freedom, the freedom of the artists to tell stories that are for walk and even edgy. and um, yeah, i mean, they're very unconventional the ways upgrades. stellar stories is the film industry still are money making machine or are we just repeating stories? yeah, because because okay, so, so movies will continue to make money. oh, by the way, one other thing i was, i should mention is that hollywood also because of english language, because the english language is such a unifying language that's also been able to help to transcend the cultural

differences. right. so if you're in europe and you're going to tell you that a portuguese and a spanish and a french right, english is the common language that everyone can connect through. so that's also help for hollywood to, to have such a global impact. and it will, you know, money movies will make money just the same way that any commodity, any, any, or anything that people want, you know, is going to have, there's going to be a value to it, right? so whether, you know, whether people are going to pay in a box office or they're paying for a netflix, or they're just going us through a free streaming app that, you know, it gives them commercial breaks, right? like television. there's always ways of making money because i think people want story. so as long as you want a good story and you know, just want to watch a tick tock video or a streaming uh tv show. you're gonna want to see a movie. so thank you. so much on the sun for all your time today. today we live in

an era where we consume a lot of content. media plays a huge role in the progression of globalization. and the film industry is especially unique and its ability to reach an international audience. globalization is now helping the proliferation to form films, thus creating competition for the hollywood industry. today, the increasing asian eyes ation of the film business could represent globalization at its best. it exposes a broader sector of the us audience to diversion culture and political perspective . and could provide enormous value rather than experiencing a clash of civilizations and cultures, we would get a truly cosmopolitan world of entertainment media. i'm christy, i. thanks for watching and we'll see you right back here next time on the cost of everything the,

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