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Economics of Hollywood

I’ve been watching a lot of videos about economics recently for research into a new project I’m working on. This channel Economics Explained is one of my favorites. The creator does a great job breaking down the topic and adds a fun bit of sarcastic humor. Bonus that he has a nice Aussie accent. 🙂

This video breaks down funding, product placement, tax incentives, box office income, and other topics.

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The World’s Most Indispensable Movie App

The RunPee app tells you the best times to
run & pee during a movie
so you don't miss the best scenes.


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$42 billion dollars. That is the amount of money grossed by films at the global box office in 2019. Impressive? Definitely. Surprising? Probably not, especially when you consider that global box office revenues have increased year-over-year since 2005.

That was, of course, until COVID. As you’d expect, the pandemic has devastated Hollywood – resulting in an unprecedented seventy-one percent (71%) decline in global box office revenue. Worse yet, we all have to go another year without Daniel Craig’s No Time To Die – a title that has since taken on somewhat of an eerie meaning. But putting the absence of James Bond aside…movie ticket sales have actually been on the decline for nearly two decades – despite a steady increase in population over the same period.

What people are saying
about the RunPee app.

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Michael Linhart

July 30, 2023

My bladder thanks you so much!! App works great for telling u when and for how long you have a pee break! I didn’t use the timer function so the dialog in the movie was a great clue as to when to go. I also liked the info about each movie to know whether there was any extra scenes during or after the credits. Nothing worse than waiting for all the credits and then no extra scene.

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So, if people are going to movie theatres less often – and they are – then what exactly is driving the growth behind global box office revenue? To answer this question, you have to understand the economics of Hollywood. How do movies get funded? What is the role of government subsidies and alternative revenue sources? How can a movie gross more than its budget and still lose money?

And finally, what are the economics behind movie theatres and their twenty-dollar buckets of popcorn?

Don’t miss your favorite movie moments because you have to pee or need a snack. Use the RunPee app (Androidor iPhone) when you go to the movies. We have Peetimes for all wide release films every week, including Deadpool & Wolverine, Twisters, Fly Me To The Moon, Despicable Me 4,  Inside Out 2 and coming soon Borderlands, Alien: Romulus and many others. We have literally thousands of Peetimes—from classic movies through today’s blockbusters. You can also keep up with movie news and reviews on our blog, or by following us on Twitter @RunPee. If there’s a new film out there, we’ve got your bladder covered.

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