How much money does the film industry make a year

how much money does the film industry make a year

In the following 10 chapters, you will quickly find the 76 most important statistics relating x «Movie Industry». The most important key figures provide you gow a compact summary of the topic of «Movie Industry» and take you straight to the corresponding statistics. Feel free to contact us anytime using our contact indutry or visit our FAQ page. We use cookies to personalize contents and ads, offer social media features, and analyze access to our website. In your browser settings you can configure or disable this, respectively, industrry can delete any already placed cookies. Please see our privacy statement for details about how we use data. Published by Amy WatsonDec 19, According to a recent survey, 19 percent of Americans go to the movies about once a month, eight percent go see movies in the movie theater several times a month, whereas four percent go about once per week. This is a considerable share taking into account the 54 percent of American adults who prefer watching movies at home. Film entertainment is big business in the United States.

“We’re going to need a bigger boat”

⓫-11 -(

Site Index

)}How could that be? There must be an easier way to make money. Why is anyone in the film industry? All business requires guessing, but future predilections of moviegoers are especially opaque. If a large company wants to introduce a new car, it can at least base its predictions, in part, on factors like where oil prices are headed. Movie executives, on the other hand, come up with a host of new theories each summer about what audiences want — 3-D tent poles, 2-D tent poles, vampires, comics, board games and so on maie then, sometimes over the course of a weekend, ricochet toward a new theory. Who knows. Unlike other decades-old industries, Hollywood not only has a hard time forecasting, but it also has difficulty analyzing past results. Because it had a built-in audience? Because it starred Jennifer Lawrence? Because it was released around spring break? Industru business is filled ffilm analysts who claim to have predictive powers, but the fact that a vast majority of films fail to break lndustry proves that nobody knows anything for sure. This self-mythologizing has real economic impact. The reason a majority of movie studios still turn a profit most years is that they have found ways to, as they say, monetize the ancillary stream by selling pay-TV and overseas rights, creating tie-in video games, amusement-park rides and so forth. And the big hits, rare as they may be, pay for a lot of flops. Still, the profits indhstry not huge. Matthew Lieberman, a director at PricewaterhouseCoopers, expects growth over the coming years to be somewhere around 0. Hollywood is, somewhat surprisingly, a remarkably stable industry.⓬

Film Industry — Statistics & Facts

The film industry or motion picture industry , comprises the technological and commercial institutions of filmmaking , i. Though the expense involved in making films almost immediately led film production to concentrate under the auspices of standing production companies, advances in affordable film making equipment, and expansion of opportunities to acquire investment capital from outside the film industry itself, have allowed independent film production to evolve. Indian cinema is the largest national film industry in terms of the number of films produced and the number of tickets sold, with 3. As of [update] , the countries with the largest number of film productions were India, Nigeria, and the United States. Distinct from the centers are the locations where films are filmed. Many films are produced in countries other than the one in which the company which pays for the film is located. For example, many U.


What is the most expensive movie genre?

This is an article I have wanted to research and write for a long, long time. I finally had a moment to sit down and crunch the numbers — I hope it helps in the understanding of Hollywood economics. Almost as long as there have been movies, Hollywood has relied on huge-scale productions to bring in the big bucks. The Extra-Terrestrial As the films have grown, so too have the spoils on offer. The starting point for working out the final costs of releasing a movie is to look at how much it cost the studio to shoot dows film i.

This includes…. Budgets have been rising in recent decades, well above inflation. In the following ten years this rose to The information available online is normally a mix of true figures which have leaked and educated guesses by industry experts. The studios often try to hide the true cost of a movie, in order to make themselves hoe thriftier, smarter or more in control than they actually are.

I performed a quick check for the 29 blockbusters I have inside data on compared mnoey their budgets listed undustry Wikipedia. Some of the other costs involved in making and releasing a film include…. To give you a little more detail and context, below are some notes on each of the main cost areas…. Judging the correct number mske prints and units to manufacture is a key part of the planning done by the studios.

If they order too few then cinemas and stores will have to turn away customers in the all-important first few weeks of release. If they over-order then their costs increase and they are left with annoyed cinema owners and large quantities of unsold units.

Giving these people a share of the income is a good way for the studio to hedge against poor box office performance and it also defers the moment they have to pay up. On the flipside, studios have got rather good at using creative accounting techniques to show that they made a loss on paper in order to get out of paying such fees. Fortunately, Hollywood is rather good at squeezing every penny out of a movie, ensuring that the target customer is given many chances to pay to see it.

Movies may start in cinemas but they are far from the only place they earn money. Each stage at which a movie reaches a new type of platform i.

Of the 29 Hollywood blockbuster movies I studied, 14 generated a profit and 15 lost money. Note: The following discussion of profit uses this formula: all revenue received by the studios from a particular movie minus all costs they internally attribute to that production. The smallest movies within my dataset i.

Would you have made a smart investment? And I am sure this is a fairly low return for that kind of cash. The only problem is — how do you spot the hits? Hollywood currently employs the smartest, best informed and most profit-focused people in an effort to exclusively make profitable movies and yet half of their movies lose money.

In w, their combined best efforts only produce a 3. Yes, but only by a very small margin. The average Metacritic score i. Similarly, IMDb audiences rated the profitable films an average of 6. However, we can say that, yes, movies with the biggest marketing budgets do seem to gross the highest amounts at the box office. Added to this, studios are less likely to make missteps on their home turf as they can be on-hand to iindustry everything to a greater extent.

Well, it depends on which part of the process you look at. Below you can see the origin of revenue and costs for the blockbusters in my dataset. As you can see, the majority of the money collected at the box office does indeed come from countries outside of the US and Moneyy. However, studios spend a higher proportion of their marketing money in North America. This could be for a number of reasons including the higher cost of advertising in America, the temptation to spend more in the country which studio execs actually live in and because the US is often the first place a movie is released and the media enjoy reporting on huge opening weekends and decrying massive flops.

Together, they mean that only 12 of my 29 movies made money at the domestic box office, whereas 20 made money at the international box office. Alongside this, the losses at the domestic theatrical market were much worse than internationally. So Hollywood looks to the international market with glee because….

Q4: Is there a rule of thumb for guessing which Hollywood blockbusters are in profit? They reached this conclusion by studying the full financial records of the movies they were involved with and also checking their hypothesis with independent professional film financiers.

Using this rule, I was able to correctly identify all of the profit-making films and correctly identify ten as loss-making, however, this system incorrectly marked five loss-making movies as being profitable. Not as reliable as one might have liked and way below the accuracy the BFI found when the rule is applied to smaller films but certainly interesting.

So there you have it — a rather long sorry! The biggest question some readers may have at this stage folm — how did he get this data? I was also helped by a few hoq friends in the industry who were able to fill in the blanks and confirm the veracity of some of the data points.

I am completely confident that the information in this article is a true representation of how these Hollywood blockbusters make money. The purpose of this site is educational and my sole intention is to help explain how our industry works.

In the past, I have been contacted by lawyers for various companies, trying to prevent the sharing of key data points relating to their business. So far, I have managed to avoid lawsuits and also to avoid having to take any articles down, but if I were to offer the full figures as a download or details of how to do the same piecing together I have then I suspect I would get the wrong kind of attention.

So, if you want to know any more about these movies, please add your question in the comments. Very informative and great info as. Thank you, Stephen for some scintillating reading. When is someone offering you a book deal? Great work Stephen — thank you. And related to this can you demystify the roles, contributions and compensation for these various kinds of producers?

Very helpful. Re the query on books sinceour volumes Global Hollywood and Global Hollywood 2 are more recent than the one. They are also available in Chinese, Turkish, and Spanish. Stephen, please, please put all of this marvellous stuff in a book.

Thank mmoney for this amazing work! Can you industrj here? Thanks. Ijdustry and avertsing are not included, save maybe for the on-set photographer and a publicist who shows journalists around the set. This is particularly important for things like tax incentives, which almost never include publicity and distribution costs when calculating how big the budget is.

Both have a reasonable claim to be correct. Yezr budget is a real document created in pre-production which covers the cost of physically making the film. Before internet streaming as we know it now, Pay Per View PPV was dofs, in hotel rooms and on encrypted satellite and cable channels. As VOD has grown up, the newer services have become their own new window but the old way of accounting for the older services were retained.

So strictly, the idea of digital delivery of video on demand to the viewer appears within three windows! Just two questions about the average costs graph: 1. Instead of being included in costs? The opacity occurs for a number of reasons but most are to do with hiding embarrassing or unattractive practices, because they can and because there is no benefit from being open.

Wow Stephen. Scary stuff. I want to break down the costs and show how they differ between products. Thank you Steve for your informative article. The research that went into it must have been enormous as it covered so much of the movie business including distribution. I was really interested in the DVD sales figures and the overseas theatrical markets as the advertising would be.

Thank you for your info!!! Michael L Edwards. Can you say the swing on that? Stephen, thank you for your informative detailed article. This is the sort of thing the internet would ideally be used for, instead of widespread trolling.

Keep up the good work. Thank you for the information and the analysis you have performed. The real numbers are never released, nor should. Nobody in the industry pays those numbers. At the end of the day, the important numbers and analyses come from what the windows revenue figures are ma,e their relationships.

As for profits… do magicians reveal their tricks? Hey Adrian. Glad you found it useful. This allowed me to compare the true cost to that of the public figure in this case from Wikipedia. Hi Stephen, thanks for the excellent analysis. Do you have any data to support or contradict these numbers?

What’s the average cost of making and selling a Hollywood blockbuster?

⓫-5 -(

$18 million, give or take

)}I built up a dataset of 5, feature films released domestically i. See the Notes section for details and caveats of budget information. In reality, some will be over- or under-estimates and almost all publicly available figures have murky provenance. If we line up all those movies from the cheapest to the most expensive then we get the chart. The reason producers increase nake budgets is to make a more valuable product, paying for bigger movie stars, making it more adrenaline-inducing or visually interesting. But every extra dollar they spend has to be raised and repaid. Instead, we will simply overlay the median domestic box office gross i.⓬

Comments