How do motion pictures make the most money

how do motion pictures make the most money

Skip to main content. Cast your mind back to Jurassic Park once again. Not so, due to the convoluted way that money makes its way back to the filmmakers.

Types of Directors

Motion pictures — also called movies or films — belong to the most popular forms of entertainment today. Millions of people all over the world go to cinemas to enjoy an entertaining story and to see their favorite movie stars. The film industry is also a big business. Movies cost a lot of money and the people who make them hope to make a lot of profit and achieve worldwide fame. A movie camera operates like a normal camera but it takes 24 pictures a second. The lens focuses on a certain spot. Then a shutter opens and closes and an image is recorded on film.

FILM & TELEVISION ECONOMIC CONTRIBUTION BY STATE

how do motion pictures make the most money
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 can. 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.

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

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. 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. Studios and distributors generally make more from domestic revenue than from overseas sales because they get a larger percentage. Still, overseas ticket sales are incredibly important, especially today. Independent filmmakers can actually make money if they have a great foreign sales agent who can sell their film in key overseas markets.

Once upon a time, it was all about DVD sales. Films have to leave the theater at some point, but they can remain evergreen on TV. As for VOD, revenue from these deals should add hundreds of millions to a studio’s bottom line. As the saying goes, nobody knows anything in Hollywood. The film industry is in flux, and ticket sales alone don’t drive revenue. In Hollywood, there are no guarantees. Tools for Fundamental Analysis. Alternative Investments. Company Profiles. Your Money. Personal Finance.

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As the selection of films is not random, we cannot draw any lesson from the overall figures, but we can use doo data to look for patterns which would allow us to infer profitability in Hollywood en masse. If you wish to opt out, please click here:. Stephen Follows July 26, at pm. Most successful motion pictures use hit songs to create a period flavor, establish a mood Foreign theatrical distribution rights i.

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