A movie's budget pops from the screen

That question looms large for 20th Century Fox and its 3-D science-fiction film "Avatar," among the most expensive movies ever. Despite many skeptics, the studio thinks it can turn a profit, in part because the film's creator, James Cameron, was the driving force behind the studio’s immense hit "Titanic." But just in case box-office receipts for "Avatar" fall short, Fox has worked hard to hedge its large bet on the movie. Fox's efforts underscore how studios generally have been able to minimize their exposure at a time of blockbuster budgets - albeit at the cost of limiting their profit potential as well.  (Oh and what does Murdoch think of the flick.  Apparently he was both excited and moved.  If only he could say the same thing about his share price.)

http://www.nytimes.com/2009/11/09/business/media/09avatar.html

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Can a movie studio make money on a film based on an original and unfamiliar story, with no Hollywood superstars, a vanishing DVD market and a price tag approaching $500 million?

 
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