$100m+ budget movies are known as tentpoles for a simple reason: no company can afford too many consecutive flops at this level.
So why, as Elberse argues they all should, do the big 5 all focus on tentpole or (as Elberse calls them) blockbuster productions?
Remember too that the prints & marketing spend is typically about the same as the production budget which is why, with cinema's cut factored in, box office needs to hit triple the production budget to start making money!!
This excellent stephenfellows feature breaks it down.
So - the true costs of a $100m tentpole actually go MUCH higher.
How on earth do they make money then?!
Well, these days they have a wide range of revenue sources and distribution/exchange outlets.
