What is a primary operating expense for movie studios?

Utilities represent a primary operating expense for movie studios as they are essential for maintaining the everyday operations of the studio facilities, including lighting, heating, cooling, and powering equipment used in film production. Without utilities, the studios would be unable to function effectively, which makes these costs a central part of their operating budget.

While actor salaries, legal fees, and production vehicles all contribute to the overall costs associated with film production, they are more specific to project-based expenses rather than ongoing operational costs. Actor salaries can vary significantly from project to project and can be considered direct costs tied to specific film productions. Legal fees can similarly fluctuate based on the studio’s needs regarding contracts, rights, and other legal matters. Production vehicles, while certainly a necessary expense during filming, are not part of the daily operating expenses of the studio itself. Therefore, utilities stand out as a consistent and essential expense that studios incur regularly to support their operations.