Comments on: Hollywood Apologist? http://www.filmbiz101.com/film-financing/film-financing/52/hollywood-apologist/film-funding.html Film Financing Information provided by Sharp Angle @filmbiz101.com Thu, 29 Jul 2010 17:08:00 +0000 http://wordpress.org/?v=2.6.5 By: FilmBiz101 http://www.filmbiz101.com/film-financing/film-financing/52/hollywood-apologist/film-funding.html#comment-14 FilmBiz101 Tue, 02 Jan 2007 21:31:32 +0000 http://www.filmbiz101.com/film-financing/film-financing/52/hollywood-apologist/film-funding.html#comment-14 Thanks for the catch! I have to be more careful with those late night posts! The International gross is approximately $263 (courtesy of the-numbers.com). At 48%, that adds $126.24 in studio revenue from international distribution. The US tally of $133 generates $66.5 ($133 x 50%), for a total worldwide theatrical takeof $193. That is $32M less than my error-prone initial calculation, but I don't think it changes the basic point much. This film will still be nicely profitable for the studio. A loss in theatrical is the norm. It is expected (because the upfront marketing helps propel other distribution, such as DVD.) As an indicator, check out this story from Home Media Retailing: http://www.homemediaretailing.com/news/html/breaking_article.cfm?article_id=10072 While HD DVD/Blu-Ray does not account for much now (maybe another $1M in profit?), there is clear library value in this title. The tentpole release business has some very negative implications for the business, very few would fail to recognize that. But, the studios have learned how to optimize those releases and profit from them. I contend that you don't get tentpoles without major talent on the level of Tom Cruise. Welcome to the Film Funding Blog! Look forward to your continued posts. Thanks for the catch! I have to be more careful with those late night posts! The International gross is approximately $263 (courtesy of the-numbers.com). At 48%, that adds $126.24 in studio revenue from international distribution. The US tally of $133 generates $66.5 ($133 x 50%), for a total worldwide theatrical takeof $193. That is $32M less than my error-prone initial calculation, but I don’t think it changes the basic point much. This film will still be nicely profitable for the studio. A loss in theatrical is the norm. It is expected (because the upfront marketing helps propel other distribution, such as DVD.)

As an indicator, check out this story from Home Media Retailing:
http://www.homemediaretailing.com/news/html/breaking_article.cfm?article_id=10072

While HD DVD/Blu-Ray does not account for much now (maybe another $1M in profit?), there is clear library value in this title.

The tentpole release business has some very negative implications for the business, very few would fail to recognize that. But, the studios have learned how to optimize those releases and profit from them. I contend that you don’t get tentpoles without major talent on the level of Tom Cruise.

Welcome to the Film Funding Blog! Look forward to your continued posts.

]]> By: Redneck http://www.filmbiz101.com/film-financing/film-financing/52/hollywood-apologist/film-funding.html#comment-13 Redneck Tue, 02 Jan 2007 17:20:17 +0000 http://www.filmbiz101.com/film-financing/film-financing/52/hollywood-apologist/film-funding.html#comment-13 Sorry to be late to the party, but you still made a big error. You took the 50 % of the US gross, but you added the 48% of the worldwide gross instead of the international gross, so you counted the us revenue twice. the calculation should have been, using you numbers (193M x 50%)+ ((M330-193M) x 48%) for a total closer to 96.5M+65.75M =162.27 million minus toms hefty 30% cut. That definitely chanres the profit outlook. That doesn't even include toms 12% cut of dvd revenue and 22% cut of television revenue. Sorry to be late to the party, but you still made a big error. You took the 50 % of the US gross, but you added the 48% of the worldwide gross instead of the international gross, so you counted the us revenue twice. the calculation should have been, using you numbers (193M x 50%)+ ((M330-193M) x 48%) for a total closer to 96.5M+65.75M =162.27 million minus toms hefty 30% cut. That definitely chanres the profit outlook. That doesn’t even include toms 12% cut of dvd revenue and 22% cut of television revenue.

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