How do movies make money?

In the eyes of the audience, a movie is sold in the cinema after it is finished, and the money sold MINUS the cost is the money earned. This model should be put in the vegetable market, there is nothing wrong with it. But in film and television, it will not work. In fact, the box office is only part of the profits of the production company. In addition, there are other unknown ways to make profits. Let's have a look! The profit model of movies

1, cinema line

Profiting through cinema screening is the most common and important way. Some people have done statistics, and more than 90% of the film's income depends on the box office. Therefore, strategic cooperation between film production companies and cinema companies is extremely important.

A, 50% ~ 60% of box office revenue belongs to cinemas and cinemas, and the remaining 40% ~ 50% is box office distributable income.

B in the dividend agreement, the issuer receives a commission, which is generally 5% ~ 15% of the distributable income, and the rest belongs to the film party.

C. If the issuer directly buys out the copyright, all distributable income belongs to the issuer.

2. Advertisers

The film production company will have a department dedicated to recruiting advertisers and sponsors. Before the film starts shooting, there will be a link of attracting investment and seeking to implant advertisements, similar to the variety shows we often see. Mainly because merchants choose to advertise in film and television works in order to increase the exposure of their products, so as to integrate their products with the plot of the film, thereby increasing the sales of their products.

3. Broadcasting rights

Sell the broadcasting right to a certain broadcasting platform, other platforms can't play it, and netizens can recharge or watch it for free on the broadcasting platform. In addition, many TV stations have set up special movie channels, such as CCTV6. The film side sells the audio-visual copyright of the film to the TV station to obtain copyright income.

4. Around the movie

Movies have become creative props, and the costumes, toys, restaurants, tourism, videos and video games derived from them are sold all over the world, and the income far exceeds the box office of cinemas.

5. Premium

This was originally a financial behavior, but now it has extended to the film industry and become the norm. For example, a production company A operates a project with an overall budget of 80 million yuan, which accounts for 50% of the shares (40 million yuan) and cooperates with other companies to produce this project. Then A sells his 20% shares (30 million) with a budget premium of 654.38+500 million, and his 10% shares (20 million) with a budget premium of 200 million. In this way, through the premium, A has made a net profit of100000, still accounting for 20%.