Major movies won't have $400 million budgets forever

"Just how much did that movie cost?" It's a question we're continuing to ask each time a blockbuster hits the box office. With ballooning budgets that are heading North of $400 million more regularly, it's difficult to see a world in which all these films can be profitable.

"These costs are not sustainable. Obviously, there were unique items that didn't help the budgets, such as strikes and COVID. Costs will come down as the business normalizes," Wall Street analyst Eric Handler told The Hollywood Reporter.

It's believed Mission: Impossible - The Final Reckoning, Superman, and F1 could have budgets ranging between $300-$400 million. Jurassic World: Rebirth apparently has a net budget of $180 million, but this is disputed with some believing it'll join the $400 million club.

"There's no way to defend these budgets, because when you get into the $700 million to $900 million break-even point in regards to box office and ancillary revenue, it doesn't make any sense," said a veteran financier.

There are some movies that justify themselves after a successful box office performance, but others might be able to make their budget back in other ways. The use of merchandise and digital sales are especially important in franchise films, with Mission: Impossible being a prime example. Sales of the first six movies were up 337% compared to the year before.

What do you think of modern movie budgets?