Im actually doing some research to see how much filmmakers make from theater sales( tickets,etc.) If anyone has any idea to about what percent filmmakers actually get from the sales I would really appreciate it. Also, if anyone has any hard evidence to back up claims I would greatly appreciate it. Thanks
Question: How much do filmmakers recieve from theater gross?
- Thread starter M3IC16
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It Depends on Many Factors
It Depends on Many Factors
Ok, here is what I gathered from my sources. The percent part is really tough to answer if not impossible but this should give you a really good idea of what is going on
Although significant amounts of money can come from tie-ins, network and cable TV sales, and home DVD markets, the principal source of revenue is the domestic and foreign ticket dollar. Many people have claims on that dollar: the exhibitor, the distributor, the producer, the loaning agency, and a host of profit participants who have contracted for a share of the revenue, often instead of a larger or guaranteed salary. This is sometimes referred to as points.
The total amount of money taken in at the box office (to date) is known as the picture’s box office receipts or it’s gross. The exhibitor keeps a portion of the gross – how much depends on the contract with the distributor – but often makes most of its money from the concession stands. $5.00 for a coke! What remains – the portion of box office revenue forwarded to the distributor – is called the “gross rentals” or “gross proceeds.”
From this figure the distributor deducts sales tax, refunds, benefit showings, etc, and the remainder is the “gross receipts”, all the money gathered by the distributor. The gross receipts may be divided into the distributors gross and the producer’s gross, from which each must pay back all expenses before seeing a profit. Otherwise, the distributor pays back virtually all of the expenses until the remainder, the “net profits” or “net” of the picture, is divided between the producer and the distributor.
One way or the other, the distributor collects a fee (often 30 percent of the gross receipts); deducts the cost of prints, advertising, and licensing; pays of “gross profit participants”; and forwards a share to the producer. It is common for the distributor’s share of the gross receipts to be much lager than the producer’s until the costs of distribution have been recouped; then the pattern is reversed.
For the producer to reach net profits, the “negative cost” – everything charged to a picture’s budget from the hiring of the writer through the approval of the answer print, in other words, the total cost of producing the release negative – must be paid back, with interest. From the remainder, “net profit participants” are paid, and the rest is the producer’s share of the net profits.
As a rule of thumb, a picture must earn at least three times its negative cost in order to reach the net profit level. When you hear that a film has made $150 million, that figure is probably the gross, not the net.
The box office fate of a picture will be carefully monitored during the first few weeks of release. The trades (notably Variety) carry weekly listings of the biggest-grossing films: how much they made that week, how many screens they were playing on, and how much they have grossed since release. If one picture on 600 screens and a different picture on 1,700 screens each made $2 million in their second week of release, the former would be considered the better moneymaker and would probably be scheduled for wider release. (The widest release pattern is called “saturation booking.”) The picture on 1,700 screens that made $6 million that same week and $4 million the previous week, however, would be considered the hit. When it is discovered that audiences are paying to see a film over again, the scent of a blockbuster is in the air. When a picture stops making enough money to justify current marketing expenses, it may continue to play (accompanied by smaller ads), may be shifted to a “B house” or put on a double feature, or may be pulled (withdrawn) from distribution.
You owe me one. I need you to get down and do some research and get down and give me ten good posts!
Kim
It Depends on Many Factors
Ok, here is what I gathered from my sources. The percent part is really tough to answer if not impossible but this should give you a really good idea of what is going on
Although significant amounts of money can come from tie-ins, network and cable TV sales, and home DVD markets, the principal source of revenue is the domestic and foreign ticket dollar. Many people have claims on that dollar: the exhibitor, the distributor, the producer, the loaning agency, and a host of profit participants who have contracted for a share of the revenue, often instead of a larger or guaranteed salary. This is sometimes referred to as points.
The total amount of money taken in at the box office (to date) is known as the picture’s box office receipts or it’s gross. The exhibitor keeps a portion of the gross – how much depends on the contract with the distributor – but often makes most of its money from the concession stands. $5.00 for a coke! What remains – the portion of box office revenue forwarded to the distributor – is called the “gross rentals” or “gross proceeds.”
From this figure the distributor deducts sales tax, refunds, benefit showings, etc, and the remainder is the “gross receipts”, all the money gathered by the distributor. The gross receipts may be divided into the distributors gross and the producer’s gross, from which each must pay back all expenses before seeing a profit. Otherwise, the distributor pays back virtually all of the expenses until the remainder, the “net profits” or “net” of the picture, is divided between the producer and the distributor.
One way or the other, the distributor collects a fee (often 30 percent of the gross receipts); deducts the cost of prints, advertising, and licensing; pays of “gross profit participants”; and forwards a share to the producer. It is common for the distributor’s share of the gross receipts to be much lager than the producer’s until the costs of distribution have been recouped; then the pattern is reversed.
For the producer to reach net profits, the “negative cost” – everything charged to a picture’s budget from the hiring of the writer through the approval of the answer print, in other words, the total cost of producing the release negative – must be paid back, with interest. From the remainder, “net profit participants” are paid, and the rest is the producer’s share of the net profits.
As a rule of thumb, a picture must earn at least three times its negative cost in order to reach the net profit level. When you hear that a film has made $150 million, that figure is probably the gross, not the net.
The box office fate of a picture will be carefully monitored during the first few weeks of release. The trades (notably Variety) carry weekly listings of the biggest-grossing films: how much they made that week, how many screens they were playing on, and how much they have grossed since release. If one picture on 600 screens and a different picture on 1,700 screens each made $2 million in their second week of release, the former would be considered the better moneymaker and would probably be scheduled for wider release. (The widest release pattern is called “saturation booking.”) The picture on 1,700 screens that made $6 million that same week and $4 million the previous week, however, would be considered the hit. When it is discovered that audiences are paying to see a film over again, the scent of a blockbuster is in the air. When a picture stops making enough money to justify current marketing expenses, it may continue to play (accompanied by smaller ads), may be shifted to a “B house” or put on a double feature, or may be pulled (withdrawn) from distribution.
You owe me one. I need you to get down and do some research and get down and give me ten good posts!
Kim
Wow!!! Nice write-up.. I do owe you one! what is it that you do? If you dont mind me asking....
I heard from a reliable source that if a movie gross's $1million, the Filmmakers may only get 200,000 from it...
I found that hard to believe. 2%???
What are your thoughts on that?
Also, when you say distributor are you refferring to the filmmakers or the production company? Thanks Again!! I really appreciate it. Any links you know of where I can find good research info?
I heard from a reliable source that if a movie gross's $1million, the Filmmakers may only get 200,000 from it...
I found that hard to believe. 2%???
What are your thoughts on that?
Also, when you say distributor are you refferring to the filmmakers or the production company? Thanks Again!! I really appreciate it. Any links you know of where I can find good research info?
20% not 2%
20% not 2%
I am a very small and new producer.
200,000 out of 1,000,000 is 20% not 2%.
I get much of my information from books and I am very fortunate to have input and suggestions from ASC members.
I suggest you buy books from our bookstore and sign up for the American Cinematographer magazine.
:arrow: http://www.studentfilmmakersforums.com/store
20% not 2%
I am a very small and new producer.
200,000 out of 1,000,000 is 20% not 2%.
I get much of my information from books and I am very fortunate to have input and suggestions from ASC members.
I suggest you buy books from our bookstore and sign up for the American Cinematographer magazine.
:arrow: http://www.studentfilmmakersforums.com/store
D
DAS19
Guest
maybe 20k to the actual director.
It really depends on the level of the filmmaker and what kind of contract his/her agent can negotiate. Someone starting out will usually just get paid union scale. I'm not sure how much that is, but I'm guessing around $100k-$200k for a studio pic. Any net profit participation points they may have in their contract are just for show. People rarely ever profit from net proceeds because so many other things need to be paid off before you see a percentage of the profits. Big directors like Spielberg will negotiate a percentage of the gross preceeds, which can mean a lot of money if the film is a success. I think Kim explained the difference above.
Also, video sales far exceeds box office receipts in today's market. Gross dollar to gross dollar, the home video business is about 3x the size of the box office business today. (Check out videobusiness.com for more info.) Of course, that's not reflected in the gross/net receipts calculations. The studios have many sneaky ways of hiding profits from participants, but that's another topic...
Also, video sales far exceeds box office receipts in today's market. Gross dollar to gross dollar, the home video business is about 3x the size of the box office business today. (Check out videobusiness.com for more info.) Of course, that's not reflected in the gross/net receipts calculations. The studios have many sneaky ways of hiding profits from participants, but that's another topic...
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