Wednesday, June 20, 2007

Factoids about movie revenue . . .

* Studios (on average) receive 55% of box office ticket revenue and receive an additional 2% in preview advertising + 5% in licensing.

* Some movies generate up to 10% of production costs for advertising and product placement - such as Coca Cola or Dodge automobiles.

* Most movies make an additional 50% of the box office take in video sales and an additional 10% in revenue for television licensing/viewing.

* Cable television and network television have differing licensing deals. Cable television networks usually split advertising revenue with the studios, whereas networks pay a flat (negotiated) fee per showing.

* It is expected that online downloads of movies will generate 10% of production costs for movies (once released for download) by 2010

* Once released on video - a blockbuster usually receives 10% of the original box office take each year for the next few years - this eventually drops to 5%.

* A blockbuster is considered a movie that will gross $150 million or more - meaning that at least 1.5 million of the movie going population has seen a movie.

* Sources: BOXOFFICEMOJO.COM, IMDB.COM, Warner Brothers, Sony Pictures

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