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Most movies lose money but some make profits in the hundreds of millions, be they dollars, euro or pounds. In India movies have become an enormous part of the economy. The industry has always been dominated by a few major movie studios like MGM/UA, Warner Bros. ,Columbia, Lucasfilm, Paramount or Disney. There are many large companies that provide all of the services needed to make movies, such as special effects, lighting, set building. Many of these employees belong to trade unions who say how much their members must be paid. A huge number of smaller companies also offer services, such as music studios (which record the music for original movie sound tracks) and CGI computer animation. Finally there are movie distribution companies (which send movies around the world or around a country), and advertising companies who let people know about the movie and promote it (try to make people want to see the movie).

Movies with famous stars and large budgets (lots of money), are designed to have a wide appeal, so that hopefully millions of people will pay to see them. These most expensive movies are called blockbusters. Special effects can add a huge amount to the cost of a movie, especially the newest CGI effects, but people have come to expect them and every blockbuster movie tries to out-do the last. Even in 2008, some movies cost up to $200 million to make. Very successful movies can make many times that amount in profit, and that’s why the studios keep producing them. This kind of movie will have a lot of promotion through television advertising, billboards and internet sites. In blockbuster movies, there is usually a happy ending, in which all of the problems in the plot (story) are figured out or fixed and almost everyone (except the baddie) live happily ever after. Some movies have been so successful that the studios keep releasing more and more sequels, or movies with the same characters and basic plots.

Source: Wikipedia

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