- published: 19 May 2012
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The term box office bomb or flop refers to a film for which the overall cost (production, marketing and distribution) greatly exceeds the revenue regained by the movie studio. This should not be confused with Hollywood accounting when official figures show large losses, yet the movie is a financial success.[citation needed] Since the term only refers to studio returns on investment,[citation needed] it should not be confused with a negative critical reception, or even with being unpopular or a poor performer compared with other films. After all, a film with an excessive budget can "bomb" in terms of studio profits, but still outperform the vast majority of other theatrical releases during that year.
A film's financial success is often measured by its gross revenue. Studios expect that a film's "domestic" box office gross revenue, which the American film industry defines as the United States and Canada, and other film industries define as their home country, will exceed production costs. This does not make the film profitable - typically the exhibiting theater keeps 45% of the gross, with the remainder paid to the studio as the rental fee.
A box office is a place where tickets are sold to the public for admission to an event. Patrons may perform the transaction at a countertop, through an unblocked hole through a wall or window, or at a wicket.
By extension, the term is frequently used, especially in the context of the film industry, as a synonym for the amount of business a particular production, such as a film or theatre show, receives. The term can also mean factors which may influence this amount, as in the phrases "good box office" and "bad box office".
Box office business can be measured in terms of the number of people who see it or the amount of money raised by ticket sales (revenue). The projection and analysis of these earnings is very important for the creative industries and often a source of interest for fans. This is predominant in the Hollywood movie industry.
Some complain that industry focus on profit has diminished the attention given to film as an art form. However, analysis of the financial success of films is very influential for the production and funding of future works.
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