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

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  • Commercial may refer to:Advertising, commercial messages Radio advertisement, via the medium of radioTelevision advertisement, via the medium of television
  • P:\media studies\as level media\film industry\working title\how film makes its money back.1pptx

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

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