If it made more money than its budget though, how did it still end up being a flop? Where did the extra money go to?
I'm not a box office expert but it mostly goes towards paying off marketing and everyone's salaries and stuff. A movie usually has to make twice its production budget to be a box office success or at the very least break even.
Basically that. A film needs to make over double its budget to be a success; it needs to cover the budget, then cover the costs of marketing, merchandising, press tours, and other such, which is generally about the same cost as the budget.
For example, Justice League costs $300M to produce, which means that another $300M was likely spent on marketing and other costs; if then the box office only drums out $657M, that means they only earn a $57M profit off of the movie.
By contrast, Ant-Man cost $130M to produce, and earned $519M at the box office; even with another $130M spent on marketing, that still works out at a $259M profit, almost doubling the amount of money spent on it. Even though earned less money all together the latter would be deemed a success while the former would be deemed a failure.
Morbius is an extreme case of the former.
Removing Presumed Flop and Critic-Proof.
The film's budget was reportedly 75-83 million dollars, which would make it's overall gross of $163 million still count as a bomb; even best case scenario, that leaves only about $13 million as profit, but potentially a $3 million loss. That would still be classed as a flop.
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