Why Hollywood's Film Industry Is Taking A Hit

Ben Affleck says there’s “some truth” to the idea that Hollywood is struggling — and he says the reason is simple math. During an appearance on the “All the Smoke” podcast, Affleck explained that it’s very difficult to make a movie for less than $25 million in production costs. Marketing can cost roughly the same, putting studios at about $50 million invested. Because theaters generally return about 50% of box office grosses, a film would need to gross around $100 million just for the studio to break even. Key figures: • ~$25M production cost • ~$25M marketing cost • ~$50M total investment • ~50% studio share of box office • ~$100M needed to break even Affleck argues that when margins are that tight — and streaming, gaming, and social media compete for attention — studios default to recognizable IP and lower-risk bets.