film distribution costs

Distribution and costs

Key tems

• Production cycle• Distribution as invisible art/process• Story rights• Screenplay• Producers• Director• Cast• composer

The Production Cycle

• Production Company

Distribution Company

Exhibitors

Audience

Profit finance Returns

TV/ DVD sales

The Conglomerate

Distribution

• The Invisible Art – process known only to those within the industry, barely written about and also imperceptible to everyone else.

Producers AudienceDistribution

Independent Films

• Independent Studios don’t ‘do’ vertical integration

• No formal connection between Producers, distributors and exhibitors

• Collaboration – need to get a major company on side

• £££££££££££££$$$$$$$$$$$$$$

Distribution Companies

• Determine how many copies (prints) of a film to make

– Why might this be important?– What might be some issues surrounding

this?

Distribution = power

WHY? Films can not be financed without the help of distributors

They access to capital (like spare money in a pot/account)

HOW? They have deal with theatre owners (or are often the owners)

WHAT DO THEY GET?

Brand name recognition

Ownership…………. (they own) copyright

It’s all about Money!

• Films are expense to make!

• Distribution Company and their conglomerate owners are profit driven so they must feel confident that they can make sufficient return on investment

How much to make Spiderman 2?

COST DETAIL COST

Story rights $ ?

Screenplay $ ?

Producers $ ?

Director (Sam Raimi) $ ?

Cast: Tobey Maguire: $___millionKirsten Dunst: $___ millionAlfred Molina: $___ millionRest of cast: $___ million

$ ?

Production costs $

Visual effects $

Music: Composer (Danny Elfman): $____ million.

$

Total $_____ million

COMPLETE IN PAIRS

Spiderman 2 COSTS

COST DETAIL COST

Story rights $20 million

Screenplay $10 million

Producers $15 million

Director (Sam Raimi) $10 million

Cast: Tobey Maguire: $17 millionKirsten Dunst: $7 millionAlfred Molina: $3 millionRest of cast: $3 million

$30 million

Production costs $45 million

Visual effects $65 million

Music: Composer (Danny Elfman): $2 million.

$5 million

Total $200 million

Unbreakable COSTS

DETAIL OF COST COST

Story rights and Screenplay $5,000,000

Producers $1,878,260

Director (M. Night Shyamalan & Assistant): $5,081,749

Cast:Bruce Willis: $20,000,000Samuel L. Jackson: $7,000,000Robin Wright Penn: $2,500,000Rest of Cast, Casting, Stunts, & Travel: $5,568,388

$ 31,903,987

Production costs:Visual effects: $1,000,000Music: $2,253,456

$26,214,709

TOTAL $73,243,106

Lara Croft Tomb Raider: The Cradle of Life

COSTSDETAIL OF COST COST

Story rights and screenplay $4 million

Producers $4 million

Director (Jan de Bont) $5 millionCast

Angelina Jolie: $12 million Extras: $250,000Other (inc. Angelina's perks): $5 million

$17.25 million

Production costsSet design and construction: $17.8 million

$67 million

Visual Effects $13 millionMusic $3.3 million

Editing $3 million

Post Production costs $1.5 million

Total $118 million

Terminator 3: Rise of the MachinesCOSTS

COST DETAILS COSTStory rights (Carolco and Gale Anne Hurd) $19.5 million

ScreenplayJohn D. Brancato & Michael Ferris: $1 million

$5.2 million

Director (Jonathan Mostow) $5 million

Producers $10 million

Cast: Arnold Schwarzenegger: $29.25 million + 20% gross profitsArnold's perks: $1.5 millionRest of principal cast: $3.85 millionExtras: $450,000

$35 million

Production costs $58 million

Post-production costs $4 million

Visual effects $20 million

Music $2 million

Other costs $33.6 million

Total $187.3 million

Other Costs

• Promotion (marketing) – often higher than Production costs – Very hard to get accurate data (cost

projection)

• Promotion budgets usually around $65m

Other sources of money

• DVD’s – can add up to $100m and a higher % goes back to the company

• TV Rights• Merchandising/synergy

• But in 2009 theatrical box office revenue was bigger than home video revenue ……..why do you think?

• – piracy, Netflix, cost of 3D tickets (too high).