All the Ways That Films Make Money
Getting nominated for the Oscars. Gracing red carpets. Attending glamorous movie premieres. You may think that the life of Hollywood stars and producers are all a bed of roses. Behind the glamor though, the film industry revolves around investing money and doing everything to profit from it.
It’s called show business for a reason. You might have heard how the latest Avengers series, Infinity War, made over $2 billion and is still continuing to gain more revenue. But after the film shows, how do they get more money from this blockbuster hit? Obviously, ticket sales are the main source of revenue. But with the widespread use of the internet and a disturbing increase in piracy, more and more people are opting to watch movies on their laptops for free instead of seeing and paying for the movie on the big screen. If a movie has already built a solid audience, like the Harry Potter and Marvel series, it is more likely that the movie will still be filled with people. DVDs, Blu-ray, and TV rights also contribute to the movie’s proceeds after it has stopped showing in theaters. Plenty of these movies, if not all, have sold TV rights to different companies. Even airlines pay large amounts of money to get these rights for their in-flight entertainment. DVD and Blu-ray sales also account for a fraction of this post-theater profit. But although DVDs and Blu-ray purchases have decreased over the years, some big-time movies, like Disney’s Moana, still managed to sell over a million DVD copies. Similarly, producers also score big by selling rights to popular streaming services like Amazon Prime and Netflix. Most viewers who skipped the theater line and missed TV shows can have unlimited access to their favorite movies through their subscriptions. After hitting the big screen, movies can also hit the stores and sell their merchandise. Of course, not every movie will sell big in physical stores. Most of the movies which can use this strategy are those which appeal to kids and die-hard fans. Movies like Disney’s Frozen and Star Wars are still gaining millions in their revenue through merchandise sales. Aside from t-shirts, costumes, and toys, movie producers can also use their movie concept and turn it into novels, short story books, and video games for public consumption. Some movies were adapted from books, which obviously gained more popularity after the big screen version like the Marvel Comics, while some were movies adapted into books for viewers who could not get over the series and want to read more stories.
The Bottom Line
It might not be obvious, but the movie industry is not all about glam and red carpets. It’s a very cruel world to be in, where the predator eats the weak and the less interesting films get thrown out the window. But with the multitude of channels where producers can profit from, even the most indie film still has a chance at Hollywood stardom and dollars.