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A Sign of H’wood Discipline? March 28, 2003

Posted by David Card in Uncategorized.

This story in the Journal sketches out how Paramount makes less risky, but profitable movies.

Paramount executives say the studio has been profitable every year since 1994 — a claim few, if any, other studios can make. Part of the reason is that Paramount has resisted films with super-high price tags. The studio has never invested more than $100 million of its own money to make a movie and caps at 25% the amount of a movie’s revenue that it shares with filmmakers or actors. By bringing in partners and selling certain international rights to apply against a movie’s cost, Paramount will spend the same on movie production this year as it did in 1994, even though the average total cost of making movies has doubled.

It also points out that budget scraps are coming close to alienating one of Paramount’s star producers.

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