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- tejastech08
- Rep: 194
Re: The Lone Ranger Is Way Over Budget Again
Studios make much more money off DVD sales, PPV, Rentals... Merchandising if they're lucky to have that kind of film/franchise.
Marketing kind of depends on the film itself. If you have a film that costs 135 million. It's rated PG13, you're looking about 30-60 million average. So you basically have a 200 million dollar film. Some films will spend 100 million in Marketing, but that's rare. So if you're bringing in 500 million off that movie, that's still good. What hurts? Taxes and paying actors (like Tom Cruise who want a 30% take of the profits) and directors their back end deals.
Tej isn't far off, but the studios make a ton off a theater run. The theaters themselves only make about 25-30% of a films profits during it's theater run. I think it's like 10% the first week a film debuts. The second week it's 15% the third week it goes to 20%.
I bet Madagascar 3's marketing budget was the same, if not more, than the films actual budget. They'll make that up in a week.
Plus, you have much different deals in place for overseas markets and they make TONS of money from that.
The overseas theater percentages are higher. In the States, the studios have a lot more leverage. Overseas, they are dealing with government-owned theaters in some cases (like China) where they can demand 50% or more of the revenue. In the States, you are correct that the studios can command upwards of 90% of the revenue for the first couple of weeks. That is primarily for huge releases like Avengers or Batman. The theaters don't mind because a packed house means a ton of cash in food and drink sales.
Re: The Lone Ranger Is Way Over Budget Again
Yeah, you're right but I'm talking about films who get different distribution deals, on top of the added income of the overseas markets. You might like this read tej, as pretty astute about all this stuff 
http://www.gcglaw.com/resources/enterta … deals.html
You'll like the bit about Studios, and how they've become more and more distributors than actual production houses.
Here's a (eye-opening) bit about foreign distribution and how vulnerable an Indy filmmaker is:
Foreign distribution has grown to become the single largest category of film distribution income, exceeding both domestic theatrical exhibition and video sales for revenue. Despite its importance, however, foreign distribution is risky territory for independent films, because the language, currency, and legal enforcement barriers often make it difficult to collect royalties or enforce contract rights. If a filmmaker seeks an advance and a royalty payment in exchange for foreign distribution rights, she must face the vagaries of currency exchange and the unfortunate but all-too-common practice by which foreign distributors refuse to distribute royalty income.
And we haven't even talked about TV revenues...
- tejastech08
- Rep: 194
Re: The Lone Ranger Is Way Over Budget Again
Yeah, that's pretty brutal on the distribution front.
Re: The Lone Ranger Is Way Over Budget Again
Yeah I posted an article not long ago that pretty much showed that the studios are in business because of TV revenue. But according to that article, most studios weren't even making a billion dollars a year on movies. Some not even half a billion.
But TV on the other hand brought in billions.
With international royalties being hard to collect, i'd be curious to know how hard it is to collect, or if it even exists, international syndication money for both TV and films. Isn't the money for ad-supported TV & films required up front, free and clear?
- Me_Wise_Magic
- Rep: 70
Re: The Lone Ranger Is Way Over Budget Again
Saw this earlier in the afternoon on Tumblr. Looked pretty cool. Hopefully the final version is really good!
Re: The Lone Ranger Is Way Over Budget Again
First immediate thing I don't like about it, is exactly the worry I had...
Tonto is the star and not the Lone Ranger
Depp ultimately will be miscast. Sure it's some sort of dream role of Depp's to play Ian Astbury on film, good for him, but the reality is it will without a doubt over shadow the actual star of the story, and it looks like it's already being promoted that way. The title card has Johnny's face and the title "The Lone Ranger", when he's not.
Lame, but in terms of the film itself... looks cool.
