GUEST EDITORIAL: How filmmaking companies make money
HOW FILMMAKING COMPANIES MAKE MONEY
While the film industry is one of the sectors where budgets are impressively high, the question of finances stays open. It’s not enough to earn the money on tickets, and the movie-making companies find other ways of filling their accounts.
How Does the Movie Industry Make Money?
We all love to watch films and feel as if we’re the part of movie-making art. And every time we go to the cinema we try to imagine what stands behind all these scenes and how the magic is done. Well, only film-makers know these secrets but we definitely know that they cost a lot of money. Movie production companies know that you won’t cover all the expenses with the help of ticket revenue. Filmmaking doesn’t only include the involvement of celebrities, cameramen, and other staff but also development, production, promotion, etc. So, let’s find out how people make money in this industry.
How the Film Industry Grows Its Budget?
The era when producers of the industry counted only on the success of the film is far gone. Today, they look for alternative ways of attracting money to the project and these methods really work, you can check it here. Let’s look through a few variants of earning money in the industry of filmmaking:
TICKET SALES: The number of people who want to watch the film at a cinema is still high in the industry. Studios have to pay the commission from sales to theaters and distributors. Filmmakers of the industry get a larger portion of the income during the 1st week since the movie has been released. Usually, the budget is shared according to this scheme:
60 % goes to a studio that created the film;
20-40 % goes to the distributors operating theaters.
Notice that sci-fi and fantasy movies are more popular than independent films in 2017, for example. They gather a larger audience and that is why they get more money in the industry. We can say the same about such films released overseas;
DISTRIBUTORS OF THE INDUSTRY: Film producers interact with people who are responsible for the movie release in different parts of the country. They sell distributors the right to show it on this territory and expect to get the percentage from this deal. Usually, the producer in the film industry gets back around 30 % of the money he invested in the movie. If it’s successful in the territory, distributors share the income with partners by 2.
OVERSEAS FILM SALES: International communications and promotions are highly appreciated in this business and people having jobs in the film industry know how to make money in this segment. Producers earn around 25 % on selling the rights overseas.
DISTRIBUTION: Distributors of the industry have to promote the film on their territory somehow and they take the mentioned commission of around 25 %. As we mentioned, they also share the income from the release.
Film industry jobs cover many segments and can be connected with any process starting with casting and ending up with commercial operations. You can become a part of Hollywood life and help to create movies with a $ 500 000 000 budget. Or you can enjoy the greatest films in the industry at a cinema and try svenska casino while waiting.
Final Thoughts on Film Industry
The financial scheme in the filmmaking industry performs a complicated chain of processes. We described the most important methods of money earning in the industry but there can be even more of them. Besides, are you interested in how to get into the film industry? Or, maybe, you already work there? Tell us about your experience connected with the filmmaking industry!
ABOUT THE AUTHOR: JOSHUA SHERMAN
Photographer and cameraman, he likes to travel and get new experiences. He captures the scenes of the lives of local people and their traditions to establish the exhibition in his native city New York. Studies the history of cinematography of each country he visits. In his free time, he adores playing 100 free spins utan insättning.