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The 1997 blockbuster Titanic cost approximately $200 million dollars at current dollar rates, and $247 million dollars after inflation from its previous value. However, the film went on to gross $1.8 billion dollars worldwide, easily recouping its original production cost, even before DVD and video sales. A large part of the budget involved shooting in a giant water tank and constructing enormous and elaborate sets to historically match up to the original Titanic designs. Similar films, such as the far less successful Waterworld, suffered high production costs because of the expense of shooting safely and aesthetically on water. The film also cost more than the original Titanic's construction costs, which took more than �1.5 million from 1910-1912 to build, equivalent to �120 to $150 million dollars by 1997 standards. Some of the costs were reduced during production by director James Cameron opting to forfeit his $8 million dollar salary in exchange for a percentage of the gross, a move that ultimately paid off for him.
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Part of the production cost went into building the studio, which still exists in Rosarito Beach, Mexico, just south of San Diego. Other movies made there were Master and Commander, Tomorrow Never Dies, and Pearl Harbor. You can tour the facility and see some of the Titanic props, but the 9/10ths scale ship was dismantled shortly after filming. It's like a small Universal Studio tour, but only cost about $12 to get in. See http://www.bajastudios.com/
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