It goes without saying that box office dollars differ from one market another. Companies, including movie houses, have options at their disposal: They may employ different business models for different global markets, or they may stick to the same fundamental one but with alternative strategies and adjusted finances.
Reporter Ben Fritz boils it down clearly: For every $10 a movie makes in the US, the studio gets $5 of it, whereas it's $2.50 for the same $10 in China. But penetrating such a major market as China may pay dividends for future movie offerings and business deals. So we mustn't scoff outright at the wide discrepancy between US and China.
The following gross figures for the highly popular Transformers film series are staggering:
Sure, there are intricate financials and complicated business and market factors that go into topline and bottomline, but the gross margins for Transformers are figures that many movie houses would die for: a whopping 387% in returns.
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