How Movies Go From Idea to Profit

by Gabby Peterson

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The Movie Making Process:

Development:
  • Story Development
  • Screenplay Writing
  • Financing the Movie
Pre-Production:
  • Casting
  • Location Scouting
  • Creating Shot Lists
  • Script Breakdown
  • Tech Scout
  • Scheduling
  • Production Design
Production:
  • Rehearsals
  • Setting Up Shots
  • Filming
Post-Production:
  • Editing
  • Music
  • Test Screenings
Distribution!
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How is the Movie Funded?

  • Venture Capital

  • Product Placement

  • Money from the studio supporting the movie

How Does a Movie Make Money After Distribution?

  • Ticket Sales- Movie Distributors take about 30% to 50% of ticket profit on average, but some cases it can even be as high as 100%

  • Concessions-Movie distributors are getting about 50% or higher of the profits

  • DVD Sales

  • TV and Streaming Sales-For movies that aren't as popular, companies will license to make some profit on them

  • Airplanes

  • Merchandise- T-shirts, video games, action figures, toys

Why Movies Aren't Making A Profit

  • Studios set up a separate corporation for each movie they produce.
  • The false corporation is now getting a big amount of money that overshadows the revenue
  • So the actual company that produced the movie is getting more money, just disguised as a payment to someone else.
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The Future of the Movie Business

The movie business is crumbling

  • Other media outlets
  • Studios are more selective
  • Creating movies is more expensive
  • Profit system is not sustainable
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Credits

Brendon, Conelly. "16 Different Ways That Films Make Money." Den of Geek. 15 Sept.

2014. Web. 2 June 2015.


Davidson, Adam. "How Does the Film Industry Actually Make Money?" The New York Times. The New York Times, 30 June 2012. Web. 2 June 2015.


Finocchiaro, Peter. "Steven Spielberg's Movie Industry Prediction: 'Implosion' Of Film BusinessModel Imminent." The Huffington Post. TheHuffingtonPost.com, 13 June 2013. Web. 2 June 2015.


"Highest Earning Films by Cost to Earning Ratio." Box Office. Web. 2 June 2015.


"The Movie Making Process: From Development Hell to the Shark Pool of Distribution."

Free Online Film School: Learn Filmmaking. 10 Aug. 2011. Web. 2 June 2015.


Thompson, Derek. "How Hollywood Accounting Can Make a $450 Million Movie

'Unprofitable'" The Atlantic. Atlantic Media Company, 14 Sept. 2011. Web. 2 June 2015.