WHY DO MOVIES COST MILLIONS?

Movies need movie theaters

• Expensive projectors (low volume tech)
• Real estate
• Overhead (seats, advertising, PR)

  • network effects are vital

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Why do movies cost millions of dollars?

It's not because film is expensive, or because actresses are well paid.

Movies are expensive because they need movie theaters.

Theaters need lots of special equipment -- stuff that's not good for anything else.

They occupy expensive real estate.