When it comes to budgeting a blockbuster movie, things can get out of hand pretty quickly, especially if there are hiccups or any kind of unrest on set.

That’s why it was so interesting to check out some leaked tax documents that show that the total cost of 2019’s Star Wars: The Rise of Skywalker came to $593.7 million.

Those numbers make it the third most expensive movie in history.

Forbes recently published the documents that came up in a court case.

Now, thanks to the magic of filming in the U.K. and their incentives, Disney receives a hefty tax reimbursement of $103.8 million, which brings the net cost down to a slightly less staggering $489.9 million.

I wish the USA had tax breaks like these for movies!

Still, that is a massive budget, but it highlights the importance of production incentives and shows why people are filming outside of the US.

Let’s dive in.

– YouTubewww.youtube.com

The Box Office Battle

The Rise of Skywalker grossed over $1.077 billion worldwide, which, on the surface, looks like a huge success. However, remember that theaters typically take a 50% cut. That leaves Disney with roughly $538.5 million from the theatrical run.

So, after all that, the film’s theatrical profit was a relatively slim $48.6 million.

These are all estimates, and it doesn’t count the money they could make on:

Home Entertainment: Blu-ray, DVD, and VOD sales are a significant revenue stream.Merchandising: This is Star Wars, after all. Toys, apparel, and other merchandise are a goldmine.Streaming: The film’s eventual home on Disney+ adds long-term value.

But I really love dissecting this studio budgeting and seeing how a massive studio can take these big risks. It’s the equivalent of betting a lot of money to try to win a lot.

Still, are there any lessons for filmmakers playing in a small sandbox?

What’s the Takeaway for the Rest of Us?

Honestly, it’s the same lessons. If you get investment for a movie, you need to hopefully turn some sort of a profit in order to show your investors it was a good opportunity.

Now, someone might give you money for art’s sake, and bless that person. But most filmmaking is the meeting of art and commerce. While you’re probably not working with a half-billion-dollar budget, the principles are the same:

Budgeting is Everything: Know your numbers, inside and out. Every dollar counts.Don’t Forget Marketing: A great film is useless if no one sees it. Factor in marketing and distribution costs from the very beginning.Find Your Revenue Streams: Don’t just think about the box office. Explore every possible avenue for monetization.Summing It All Up

The Rise of Skywalker is an extreme example, but it’s a fascinating case study in the high-stakes world of blockbuster filmmaking at the studio level.

For the rest of us, it’s a reminder that at the end of the day, filmmaking is a business as well as an art form. Art and commerce work hand in hand to get people to the theater.

You have to be smart and resourceful to make money back and to keep your investors happy, no matter what level you work at.

Let me know what you think in the comments.