A few. But can any of them really compete with hollywood . Im christy, im. Youre watching the cost of everything were today. Were 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 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. To now the standstill budget hinges on a few factors like screen play, cast crew locations, 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. Post production is the other most expensive part of them creation as it includes the special effects editing, sound design and colored writing. And this also depends on the text field 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 coal also 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 film. Get out which cost 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 ive noticed, we low budget films, but in the movie theaters are usually the hor, and gore and 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. Now, today were joined by filmmakers 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, its, you know, its a good question. Its something that i, as a producer, is what 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 . Theyre making, they, they make them for like 250000000 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 youre talking hundreds, if not thousands of people working for months. Because theres the Development Side of a story, which is if you, you know, lets see a so if youre a number of people like a few writers, but when you get to that place of the designing visual effects, right, are design costume design. Um, you know, you Start 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. Thats the, the, the Computer Generated imagery that you see in, in these movies, right . These are 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 peoples faces. Actors faces all the way down. So theres 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 budgets necessarily, right . Theyre probably making, you know, maybe a few 100. 00 a day or maybe a 1000. 00 a day. So that, thats some aspect of the budget. 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 writers sometimes to live, to a certain extent, maybe not as much unless theyre a really famous writer and the producers. And then the big this often times if its a studio film, then the studio has their they call overhead. Right . That theyre basically, um, taking their car, you know, theyre kind of, theyre making their money with you name at the Development Side of it, renting out studio spaces. Uh, uh, renting, you know, facilities, you name it rents and equipment. So, you know, again, its, its, its a large, large process to make a movie. Its not just writing a book, you know, its, its one to 3 people, you know, an editor, you know, that kind of thing. Its a very small number that painting a painting. Its usually one person making a movie, youre talking hundreds of thousands of hundreds to thousands of people. Now sound production and last various expenses, including test 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 blockbuster is, you know, 10 or blockbusters like tomorrow. Ringback movies or the star wars movies, and those. Now we see the budgets around 200000000 and thats just for the production. And then you talk about like the, the dna after you even mentioned that, you know, thats the publicity, the advertising, right . The billboards, the, the, the, the commercial spots and putting it on radio, putting, and getting actors, you know, to events around the world. Right . Traveling the actors, the different events, at least. Thats another 100000000 or more just advertising. So thats for the bigger movies in terms of, uh, lets say in the theres, so theres an interesting place where the studios tend to focus more on the big stuff because they want, you know, that justifies their budgets. Thats they tend to be a little bit safer. You know, because its a big, theres a big audience. Although were seeing this past year, maybe you know hes been in jones and the flash and transformer is maybe they dont have the same audience that they used to have. Right . And so theyre spending 2. 00 to 300000000. 00 and maybe its, its not worth it. I think thats that theyre in there and theyre having to reassess. Right. This is not the old game that it was the last pre cove it right when you just put out a big blockbuster movie and you know, youd make a 5002000000000. 00. Maybe its 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 dont have as big a budget because theyre 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 theyre not going to spend a 100000000. 00 usually on a drama unless you have a tom cruise as a star. You know, because it doesnt. You dont 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 theyre done well, you can make easily a 100000000. 00, but 10000000. 00 movie. So thats 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 stuff. And i think maybe theyre come, theyve been, have to come back around and say, well, actually, maybe 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 dont have 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 its, its 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 printable activity, which was a little movie. You remember that was done for like 30000. 00 or maybe 70000. 00 or something very small. But um, because uh, spielberg and uh, i think paramount got behind it. And they basically gave marketing for like 30000000. 00. And what happened . It was a caught fire, right . Because everyone, these are great Marketing Campaign of a fresh different for film. And they went to see the movie and it made, i dont remember how much 10200000000 or something or more. Thats probably one of the biggest successes of all time. So, because if you think about the cost, the cost of production to the actual revenue in. Net net, the revenue. So the company as far as a 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. Its your company basically distributed. It and i dont think they had a Big Marketing budget. I might be mistaken, but they still because of word of mouth because of the sort of. Ringback 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 look and buy your ticket for your friends, you know, help people to can 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 way 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 transformer as or do ending at jones, you know, movies that may be, you know, theres 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 Worlds 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 its a bigger they make more films than hollywood. Im correct. And i think nigeria even even bigger. But when they say they make more than you doesnt necessarily mean the quality is always is good. That said, ive seen the bollywood productions. Ive 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 youll find in, in hollywood. So i, and im sure you know, again, i dont know bollywood well enough to say how it compares. Im sure that their budgets are not as big even their big budgets are not as big as a you know, 200000000 dollar us productions. And by the same time, we think about how again going back to the visual effects, how it this is changing this evening, the whole playing field, 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 thats really where i think things are, are becoming 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, and it may not have be as habits cost as much, but you dont need, you know, if its, its all relative, right. The, the cost of labor in india is going to be different to 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 something very high quality in, you know, and basically any country, if you can generate the imagery, the visual effects, imagery, and such that, that it could all live 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 the leader with a thriving film and tv industry. So what countries are shining in this industry . Well have more after the break the, 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 next 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 worlds biggest box off as being the 1st country to achieve the status. Its revenue turnover total more than 7000000000. 00. So in an attempt 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 helped to sell the American Culture to the world. Now china knows that if it wants to expand its 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 geography period, pieces, and quote, horror films. A while some animate is hand drawn. Computer system animation techniques have become quite common in recent years, animate off and draws influence from the manga light novels and other cultures. Unlike western cartoons, animate as a genre isnt 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 candidate challenge hollywood for the lead is asia, india, and china together both not only a 3rd of the worlds 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. The industry is viewed mainly by a vast film 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 in ex pats. Films like dongle has overseas growth, revenue of 260000000. 00, while the by who, by the series cost over 370000000. 00 globally. So for this and more, lets 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 in, so you know, just into california into, uh, not just into the film company like amc, i believe was, uh, what thing was wanda, that, that kind of controlling interest and amc and, and obviously in california in general theres a lot of money from china. But actually a lot of that seems so changed. I dont know if the chinese economy is, you know, is taking it as it had 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 dont see a ton of necessarily driving the force of the film investment. In fact, i wonder if the overall attitude that i was, i was told, basically within hollywood was they, there already have the some financial issues. They were already looking at the cost cut before the strike. So in the sense the strikes serves. Thats why they, they havent made a deal yet. The studio. And i mean to deal with writers because living studios want it to cut costs anyway. And so they are trying to figure out their Financial SystemGoing Forward. So right now its like huge pause in it. You know, this is a massive stop of product. You know, with auction really. I mean, on the mass, when they over 3 months now without, you know, without writers working without outside. Um, you know, actors working on big projects, maybe some smaller things are happening, but it goes to show theres a, i think theres some quandaries about like wheres probably getting its money Going Forward and, you know, trying to really m