*American Graffiti* (1973) is famously cited as one of the most profitable films in cinema history. Directed by George Lucas and produced by Francis Ford Coppola, the film's success was a major catalyst for the "New Hollywood" era and provided Lucas with the financial leverage to create *Star Wars*.
### **1. Budget Breakdown**
The film was produced on a shoestring budget, largely because every major studio except Universal had rejected the script.
* **Production Budget:** **$777,000** (roughly $5.6 million today).
* Lucas spent approximately $90,000 of this on music licensing for the 42 songs.
* Because the budget was so tight, the film was shot in just 28 nights. Lucas often had to use two cameras simultaneously to save time and money.
* **Marketing & Promotion:** Universal invested an additional **$500,000** to promote the film after positive test screenings.
* **Total Cost:** Approximately **$1.27 million**.
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### **2. Revenue Breakdown**
The film’s earnings were divided into its original theatrical run, its major 1978 re-release, and long-term home media/licensing.
#### **A. Box Office Performance**
* **Original 1973 Release:** The film was a "sleeper hit," earning **$55 million** in its first theatrical run. It was a massive success in the U.S. and Canada, though its international performance was initially more modest.
* **1978 Re-release:** Following the massive success of *Star Wars*, Universal re-released the film with Dolby sound and an additional 2-3 minutes of footage. This re-issue earned an additional **$63 million**.
* **Total Box Office:** Most industry trackers (like *Box Office Mojo* and *The Numbers*) estimate the lifetime worldwide gross at approximately **$140.5 million**.
#### **B. Post-Theatrical (Home Media & Rentals)**
* **Rental Revenue:** By 1997, *Variety* reported that the film had generated **$55.13 million** in North American rental revenue (the portion of video rental fees returned to the studio).
* **Home Video Sales:** By the late 1990s, the combined box office and home video revenue (VHS/DVD) had exceeded **$200 million**.
* **Soundtrack Sales:** The soundtrack, *41 Original Hits from the Soundtrack of American Graffiti*, was a cultural phenomenon. It was certified **Triple Platinum** (3 million units sold) in the U.S. alone. In 1973, it was certified Gold within just one month of the film’s release, representing over $1 million in sales in 1973 dollars.
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### **3. Budget vs. Revenue Comparison**
The financial success of *American Graffiti* is staggering when measured by Return on Investment (ROI):
| Metric | Amount |
| :--- | :--- |
| **Total Production Cost** | $777,000 |
| **Total Box Office** | $140,500,000 |
| **Total Revenue (incl. Home Video)** | ~$200,000,000+ |
| **ROI (Box Office only)** | **180x Production Budget** |
| **ROI (Total Revenue)** | **~257x Production Budget** |
### **Key Contextual Details**
* **The "TV Movie" Scare:** Universal executives initially hated Lucas's cut and planned to release it as a 90-minute TV movie. Francis Ford Coppola famously offered to buy the film from the studio for $777,000 out of his own pocket to save it. Universal refused, realized the film's potential after test screenings, and eventually released it in theaters.
* **George Lucas’s Share:** Lucas earned a $150,000 fee for directing but also held "net points." The film’s massive profitability made him a multi-millionaire before *Star Wars* even began production.
* **Historical Standing:** At the end of its initial theatrical run, it was the 13th highest-grossing film of all time. Adjusted for inflation, its $140 million gross would be equivalent to over **$1 billion** in today's market.