Studios make money off movies

How could that be? There must be an easier way to make money. Why is anyone in the film industry? All business requires guessing, but future predilections of moviegoers are studios make money off movies opaque. If a large company wants to introduce a new car, it can at least base its predictions, in part, on factors like where oil prices are headed. Movie executives, on the other hand, come up with a host of new theories each summer about what audiences want — 3-D tent poles, 2-D tent poles, vampires, comics, board games and so on — then, sometimes over the course of a weekend, ricochet toward a new theory. Who knows.

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Unless movies make money, the money to make movies would dry up pretty quickly. But where does this money come from? It comes, almost entirely, from you and me and people like us. The real question should be how does this money get from our back pockets and into the coffers of the big movie studios. Some of the pathways are incredibly obvious, some perhaps a little less so. I had just started working in a cinema when Jurassic Park was released. We had over comfy chairs in that cinema, and there was still a scramble for the best ones. It almost makes me feel nostalgic to think of the fuss and fluster. The last time I went to the opening night of a new film and my screening was packed full was Casino Royale, I think, and that was in one of those little box-rooms that make up multiplexes now. Every adult ticket sold was costing the cinema something like 25p. I spent some time booking films for rep, and got quite used to the system.

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The cinema would then pay whichever was higher, the guarantee or the percentage. Various cinemas have tried all sorts of bad ideas to cut overheads, from underpaying the staff and keeping them on booby-trapped zero-hour contracts, to letting more or less anybody run the projection booth. So the concession stand becomes incredibly important to the cinema. Those overpriced popcorns, sodas and fat, fattening bags of delicious, deferred arterial congestion are stacked high with price mark-ups, the better to make a cinema into a money-making enterprise. The Veronica Mars movie is a good, recent example. In these cases, the distributor will buy out the screens where the film would play, paying the cinema a flat fee for the run. There are two kinds of films that typically get four-walled.

What’s the average cost of making and selling a Hollywood blockbuster?

This is an article I have wanted to research and write for a long, long time. I finally had a moment to sit down and crunch the numbers — I hope it helps in the understanding of Hollywood economics. Almost as long as there have been movies, Hollywood has relied on huge-scale productions to bring in the big bucks. The Extra-Terrestrial As the films have grown, so too have the spoils on offer. The starting point for working out the final costs of releasing a movie is to look at how much it cost the studio to shoot the film i. This includes…. Budgets have been rising in recent decades, well above inflation. In the following ten years this rose to The information available online is normally a mix of true figures which have leaked and educated guesses by industry experts. The studios often try to hide the true cost of a movie, in order to make themselves seem thriftier, smarter or more in control than they actually are.

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In such an arrangement, the indie producer turns over all rights to exhibit the movie as well as sell it on DVD and to TV in a particular country in return for a minimum guarantee of money once the film is completed and delivered. MoviePass had roughly 20, subscribers before the price cut, but demand for the service since has been much higher than Chief Executive Mitch Lowe expected. These requirements have proved childs play for the savvy legal minds of Hollywood. Some stars may find that roles in studio amusement-park movies that they share with live stuntmen and digital doubles do not provide the acting opportunities, award possibilities, prestige, camaraderie, or even aura of coolness of indie productions. Whatever the stars motives, the indie producers get, if not a free ride, a means of financing their movies through a three-step process called presales. The studios get to keep the other 90 per cent. For one thing, these grosses are not that of the studios but that of the independently-owned movie houses. Retirement Planner. Download Now. What films will you find on this list of the best making money movies? It is a film adaptation of the non-fiction book Wiseguy by Nicholas Pileggi, who co-wrote the screenplay with Scorsese. More American Hustle.

Box office is one way a film makes its cash: but what are the others?

More Glengarry Glen Ross. In fact, the studios get an even smaller share of the foreign than of the American box-office. The union between Hollywood and TV has paid off handsomely. Last year, the studios share averaged about 40 per cent of ticket sales. Uploaded by iamsabhere. Finally, it explains why so-called studioless studios find it difficult to survive in Hollywood. The shell, in turn, buys the copyright for a movie and the right to produce it.

“We’re going to need a bigger boat”

The haste with which the company hit the million subscriber milestone — announcing on Dec. It took Netflix, of which MoviePass Chief Executive Mitch Lowe was a founding executive and which, of course, began life as a DVDs-by-mail service, more than three years to hit the 1 million subscriber mark. MoviePass had roughly 20, subscribers before the price cut, but demand for the service since has been much higher than Nake Executive Mitch Lowe expected.

But the bottle will stand on its. But it studios make money off movies still shelling out the full price of tickets to studios and movie theaters. If MoviePass is able to prove that it can drive incremental box-office revenue to studios and cinemas, Lowe said, moviee company can strike deals to share in the revenue from those mmoney, as well as from concessions.

That could then lead to studios paying MoviePass mohey promote films to its users. Farnsworth and Lowe orf they want to partner with restaurants located near cinemas and possibly even with Uber to get users a ride to the theater. Will we need to raise more capital in the future? You can follow him on Twitter Trey3Williams. Economic Calendar Tax Withholding Calculator.

Retirement Planner. Sign Up Log In. Home Industries Media. How MoviePass plans to make money from its more than 1 million subscribers. By Trey Williams. Comment icon. Text Resize Print icon. Getty Images. By Trey Williams Reporter. More from MarketWatch Stop worrying about where the stock market goes mvoies here and read this post Why Meghan and Harry were financially savvy to choose Canada over the U. Trey Williams. MarketWatch Partner Center.

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From a distance, the movie business might look pretty glamorous. Celebrities and producers glide down red carpets, clutch their Oscars and vacation in St. Barts…just because they. The public can be fickle, the industry is in flux, and just about any movie is an extremely risky investment, even a film starring big name actors and actresses. Major studios and indie filmmakers alike now spend much of their days looking for new sources of revenue, because ticket sales are no longer the be-all and end-all for films.

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This is in part because it costs far more to make and market a film than it. Romantic comedies or some children’s films need to promote themselves via TV commercials and media advertisements, and those costs add up quickly. For any type of film, whether a blockbuster or an indie production, things like tax incentives and revenues from product placements can help pay down the budget. If they’re given an incentive to shoot a film in Canada or Louisiana or Georgia, producers will usually hustle to do so. Still, there are a few tried and true ways that films can attempt to make money. The percentage of revenues an exhibitor gets depends on the contract for each film. Many contracts are intended to help a theater hedge against films that flop at the box office by giving theaters a larger cut of ticket sales for such films, so a deal may have the studio getting a smaller percentage of a poorly performing film and a larger percentage of a hit film’s. You can see the securities filings for large theater chains to see how much of their ticket revenue goes back to the studios.