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P:\media studies\as level media\film industry\working title\how film makes its money back.1pptx
 

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P:\media studies\as level media\film industry\working title\how film makes its money back.1pptx P:\media studies\as level media\film industry\working title\how film makes its money back.1pptx Presentation Transcript

  • How film makes its money back
  • data sources
    UK FILM COUNCIL
    BRITISH FILM INSTITUTE
    CINEMA EXHIBITORS ASSOCIATION
    BRITISH VIDEO ASSOCIATION
    ENTERTAINMENT RETAILERS ASSOCIATION
    FILM DISTRIBUTORS ASSOCIATION
    SCREEN DIGEST
    NIELSEN EDI
    HOLLYWOOD REPORTER
    IMDB PRO
    OFFICIAL UK CHARTS COMPANY
  • why
    A film is created to make money from it being exhibited.
  • commercial lifecycle
    Copies of the film are released for exhibition in different stages.
    commercial venuEExhibition
    Exhibition at home
    Source: UK Film Council, CEA, BVA, ERA
  • the bottom line
    A film recoups most of its budget through DVD.
    Source: Screen Digest, BVA, ERA
  • many middlemen
    The more times and places a film is exhibited, the more money it generates.
    Source: UK Film Council, BFI
  • International buyers
    There are around 45 international territories in which the rights to exhibit films are regularly traded.
    Source: Nielsen EDI, UK Film Council, BFA, British Council
    Figures in 000s
  • world markets
    There are around 20 major international marketplaces.
    MIPCOM, Milan (October)
    MIPTV, Cannes (April)
    Cannes, France (May)
    San Sebastian, Spain (September)
    NAPTE, New Orleans (January)
    AFM, Los Angeles (February)
    Venice Festival, Italy (September)
    Karlovy Vary, Czech Republic (July)
    Sundance, Utah (January)
    Berlinale, Berlin
    (February)
    Toronto Festival, Canada (September)
    Filmart, Hong Kong (March)
    Bangkok Festival, Thailand (January)
    PUSAN, South Korea (October)
    BAFICI, Buenos Aires (April)
    Rotterdam Festival, Holland (January)
    Source: IMDB Pro, UK Film Council
  • agent guess-timates
    Sales agents for film rights tend to use the same set of generic internal percentages to make estimates as to how a film will sell internationally.
    Source: Sales Agents (private communication)
  • real-world sales
    In practice, only a core set of territories have a regular and dependable appetite for buying film rights outside the US.
    Source: Distributors (private communication)
    Figures in 000s
  • box office structure
    A film exhibition sale is generally a 75-25 split between a vendor (cinema / retailer / TV) and a distributor, who deducts 35% commission + costs “off the top”.
    Source: UK Film Council
  • uk cinema overview
    Cinema hasn’t been seriously affected by the recession.
    3660 screens in 726 sites with 865, 599 seats, and an average ticket price of £5.18. An average of 236.4 seats per cinema, and 4.7 screens per site.
    Source: Screen Digest, CEA, UK Film Council
  • painful truth
    40% of independent British films never gross more than 100k at the box office.
    Source: CEA, IMDB Pro, Nielsen EDI, UK Film Council
  • release planning
    Opening in over 100 screens significantly increases cost.
    Source: UK Film Council
  • british independence
    “Slumdog Millionaire” has now overtaken “Four Weddings & A Funeral” as the most successful 100% independent British film in UK cinemas.
    Source: IMDB Pro, BIFA, UK Official Charts Company
  • british receipts
    In the last few years, most 100% British independent films have used cinemas as a marketing platform for DVD and international sales.
    Source: IMDB Pro, Nielsen EDI
  • rental deals
    49% of all DVD rentals are now generated online.
    “OFF THE TOP” MODEL
    ROYALTY MODEL
    The distributor pays the producer a 35% royalty.
    The distributor takes 35% commission + 25% costs.
    Source: UK Film Council, Screen Digest, BVA, ERA
  • sell-through deals
    DVD sales data is closely guarded and rarely released other than for overall market statistics.
    “OFF THE TOP” MODEL
    ROYALTY MODEL
    The distributor pays the producer a 12.5% royalty.
    The distributor takes 35% commission + 50% costs.
    Source: UK Film Council, BVA, ERA
  • walmart syndrome
    Supermarkets have come to dominate DVD sales, pushing the average retail price of a DVD to £7.42.
    Source: Screen Digest, BVA, ERA
  • pay-tv deals
    Pay-Per-View & VoD tend to be more profitable as the costs of sale are borne by the TV platform.
    Source: UK Film Council
  • broadcast deals
    Subscription & free TV fixed-fee licensing deals depend on the performance history of the film.
    Source: UK Film Council
  • the corridor
    Recoupment is organised into a “corridor” and made from a central collection account.
    Source: Film Finance Handbook, UK Film Council