HOW DO FILMS MAKE MONEY? | A LOOK at THEATRICAL DISTRIBUTION
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- Опубліковано 29 вер 2024
- A quick look at how films earn money both in and out of the studio system--plus the truth behind money at the Box Office. All good things to know when getting into film financing.
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Theatrical is dead for indie filmmakers. Has been for a while. At the most I would 4 wall a few screenings, have a launch party or two, find a way to get eyeballs to an online platform, absolutely do not sell the rights to your movie. Keep the budgets low, keep the rights in house.
4 Walling can be profitable for sure but you assume all the risk. I think if you can strike a deal with the theatre owner one-on-one to split profits it is a smart way to go. But overall, yes. I agree, for the real small indie without star power/laurels/big press recognition, a theatrical "run" likely isn't a good way to go if you can't afford the publicity to make it work.
Trying to navigate selling a current film on my hard drives and get funding for the next. This side of the industry is tough!
Agreed! Good luck!
No disrespect, but the studios that are making $100 million movies often own the distribution company as a separate subsidiary, the theater gets a minority percentage of the box office during the first few weeks of release, their share increases of course gradually but starting out, the blockbuster box office goes mostly to the studio during opening. Giving up 50% of box office to the theaters out the gate and giving up another 25% to a distributor is more so how the money would be divided if the movie was from a much smaller independent studio that doesn’t have the kind of leverage that the big studios making $100 million movies have
You should pick up a copy of Hollywood Economics--It's a great read about how it all works :)
@@WillvonTagen I’ll check it out, definitely sounds like a book I’d be interested in. Thank you
Another great piece of education and information. Thanks for the share Will!
Aww, thanks brother! :)
Another great piece of content man. What sets this channel apart is you are giving tangible steps for people to take which most people don’t even try to do.
Wow...this was indeed very helpful. I always wanted to know how movies make money...I think independent film making is now quite risky unless the director has some kind of clout..they can make films in low budget and then gain high profits if the film is well received...the horror films are looked down but most of them make huge profits for jason blum.
Yes, horror has really figured it out, haha. Thanks for watching!
yeah...Spiderman No way home just broke all the box office records. Cinemas ain't closing anytime soon.
ALL the records :)
You are analyzing the issue incorrectly. Theaters aren't competing with streams and TV's at the top of the funnel. They are competing for your *time immersed among content in general.*
Twitch, YT Shortform-YT Longform, Shorts, TikTok, Instagram, Facebook, Snapchat, News Media, E-Courses, Tutorials, Doumentaries, Podcasts, Spotify *and then* platforms like Netflix, Hulu, Prime, D+, Peacock, A+, YT-TV, Sports, and general growth of demand in all demographics for all kinds of shows and overall binge-watching.
Your TV is not their enemy. Their problem is your time first, and your money-saving second. Commutes to and from the theater, economic landscape shifts, high-costs, obligations, and newer generations never growing up with trips to the theater whatsoever, leading them astray from going to one as they grow.
These are the kind of videos I like. No extended coffee making sequences, no onewheel boarding, no whacky goofing around, no guff - just great relevant info. You deserve a lot more subscriptions. Keep up the great work.
Hahaha, thanks! Although.. I sometimes wish I were cool enough to ride a onewheel board like Matti and Gene, LOL! ;) Glad you enjoyed it!
Will von Tagen yeah I watch those videos but I find have to do a lot of skipping forward to get to the actual subject in the title. I’d rather see behind the scenes footage of shooting a scene with actors etc.
yea - enough w the coffee!
I think every style has when and where they fit. Just saying.
Only thing I don’t agree on is going with the distributor. Of course it depends on the distributor. If you do a video on how you can make money from the distributor then it will give a nice birds eye view on the options or limited options that a filmmaker has when making money. I would bet everyone will look for other options unfortunately, there isn’t many.
I agree, distributors are a strange lot. My general opinion now for most small filmmakers is to get it out there and not worry about it making money--because even with a hit it can be nearly impossible to get a return. However, the credibility that comes with having a somewhat reputable distributor behind you can carry a lot of weight in certain circles. So it really all comes down to what your goals are.
3:20 Today the hollywood and the producers are in total different business, today the business is all creating rights and properties that can be licensed for TV, Streaming, Video Games, T-shirts , merchandise whatever add box office to that and thats how studios make money
Just saw this video. Nice content man. Although in regards to New Line Cinema, it should be point out the LOTR films didn't do the studio any justice because everyone ended up suing NLC over those movies from the Tolkien estate to Peter Jackson himself because NLC tried to screw over everyone with Hollywood accounting. I'm sure it ended up costing NLC more money than they would've lost if they just paid all those creative people the money they were asking for.
Awesome video! I had many questions on how box office revenues were shared and where the real profit was, and this video answered everything. Thank you!
Glad it was helpful! Thanks for watching!
Film production will soon be like music production...
I thoroughly enjoyed this video 🙌🏾💥
Thanks for watching! :)
Thanks man ❤. Love from Nigeria 🇳🇬
thank you so much
You're welcome! :)
Between domestic tax credits foreign tax credits, domestic release numbers, international release numbers, marketing costs, distribution costs, exhibition splits, projected targets, production costs, taxation, other fees, plus internal profit splits, movies like Endgame, Avatar 2, Mario, Barbie, Oppenheimer, Sound of Freedom, etc., should be studied and taught in AME finance, business, marketing, and production classes.
Imagine spending only one hour with you! Thank you so much for sharing this enlightening video🙏
Love your channel man!
Hey thank you so much! :)
Really?! That is not fair. The theater should only get 1 M out of that and the distribution company should only get just a couple of hundred thousands and the rest should get back to the film industry.
@7.50
nice Video first time hearing thanks
Glad you enjoyed it
@@WillvonTagen thanks
Great video man
Thanks for watching!
I still don't understand, what's the best way to support work of, for example, James Cameron, do I buy cinema ticket or an Blueray copy? Wha if I live in europe but movie, like Avatar 2, Is made in the US, who gets the money? How does it work? I think making this information for general public would be of great benifit to stop piracy.
There's no real way to know which way will be best to support their work because it depends on what kind of deal they have with the theaters and with the streaming platforms but my tendency is to prefer streaming. Streaming usually allows for cheaper marketing costs (digital marketing heavy,) allows for the renewal of contract, meaning, the movie can be on the platform for some time and then be renewed for a longer period so the royalties a movie makes from streaming will be made for much longer (3-7 years at least + renewal time + however long the movie does re-runs on TV). But royalty payouts are very low nowadays. The theater allows for a better guarantee that the money made from ticket sales will go in full to everyone but it's short lived (better monitoring system of revenue, which leads to less dishonesty in the revenue reporting). Once the movie is out of the theaters, the revenue ends there though. There's also a fee paid to the movie theater that can be very high in some countries (like 35% in Australia) plus sales tax from ticket sales (10% there) so if you do a $8MIL movie and pay the sales tax, you lose over $800,000 just in sales tax.
Ty
Thanks so much
You're welcome!
Appreciate this Info!
Great content, keep it coming
The point is of a cinema to go and watch a film on a BIG screen
That's the point for some, not all. There's more to the movie theater experience than seeing something on a big screen. People go for different reasons.
Thanks for the explanation, really helps understanding the cash flow of the movie industry! God bless you bro and know that Jesus Christ, God in the flesh, has given His life for your sake. Because of His great and deep love for you personally, God Himself became a man to pay for humanity's debt by dying in our place on the cross, and that man is Jesus Christ. God's love cannot and will not go against His own righteousness, so as Judge and Owner of His creation, our debt of sin had to be paid for, but only He could pay it because only He is righteous. And He didnt have to pay for our debt of sin but He chose to for our benefit. Yet we rejoice because our God is alive and well because He ressurected from the cross and conquered death so we could have eternal life, so just as Himself, those who believe will die but we will live again forever more in peace and joy in heaven. For the eternal God has paid for our eternal debt in hell by dying on the cross so we could have eternal life with Him in Heaven (John 17:3). Repent ( turn ) from your sins and turn to Jesus and He will surely forgive you. Follow Jesus for He is a GREAT Savior and Comforter in good and bad times (read the book of John in the Bible to know Him, it is Jesus' life History, He is the Word of God in the flesh, He is God Himself in the flesh). And we do not use His grace and forgiveness as an excuse to sin, even though we are not perfect, but I desire to devote every ounce of my being to following Jesus, the One who loves me and forgives me. When I sin I am deeply grieved, I lament and repent, turning back to Him, and He righteously forgives me because He has paid for my sin. We do not serve Him to earn His love, we serve Him because He loved us first (1 John 4:18-19). When He came the first time as a man He came as a lamb to be slain in our place, but Jesus is coming back as conquering King, the Lion of Judah 🙏
1 John 1:8-9 KJV - If we say that we have no sin, we deceive ourselves, and the truth is not in us. If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness.
Romans 6:23 KJV - For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord.