Film Revenues Report – Example

January 20, 2018 3:17 pm Published by Leave your thoughts

So, this is my first look at a film revenue report. It was provided by the University, with Screen Advantage tool being used to produce the financial summaries.

Interestingly, DVD sales accounted for 100% recoupment internationally. US domestically was more split, with majority of their recoupment coming from sales to broadcasters. The international minimum guarantee was 42.8% of the international box office, was this too high? Compared to 25% of the US domestic, this is why the international loss is greater, for theatrical release, than the US box office. VOD and sales to broadcasters did not recoup monies from sales, due to distributor recoupment. 

Questions: 
·         Was the minimum guarantee too high for international box office? Did this not perform as expected as a theatrical release?
·         Why is VOD and sales to broadcasters 0%, is this due to the number of territories?


Here’s a screenshot of the financial summary:

So what does this show?

Notes:

Income breakdown:

·         $10m budget for production company
·         Distribution rights for international $15m and domestic $2.5m.
·         Overages (profit) was $510k international and $747k US domestic.
·         Assigned territory overage was $185k.
·         Total income from distribution companies and overages: $18.9m

Theatrical Release

International

·         Total box office takings for the film was e35m 
·         Monies left from international BO, after deductions (Exhibitor, PA, Distribution, recovery from the money the rights were bought for) = e-6.28m

US

·         Total box office takings for the film was $10m 
·         Monies left from international BO, after deductions (Exhibitor, PA, Distribution, recovery from the money the rights were bought for) = -$0.475m

Minimum guarantee comparison:
US = Guarantees $2.5, 25% minimum guarantee from overall box office.
International = Guarantees $15m. 42.8% minimum guarantee from overall box office takings.


Video on Demand

·         All gross revenue went to distributor recoupment. 
·         US sales were 35% of overall international sales
·         US domestic sales recouped $90k
·         Slightly less producer royalty in US domestic than international.

Q: Why was the royalty payment less in the US than international for VOD?

Overall recoupment from VOD
International:         0%
US:                        12%

Sales to Broadcasters

·         US domestic higher (15%) percentage of BO than international (12%)

·         Considering international territory larger, the sales were not as successful as US sales.

·         Distributor rights to international sales means that recoupment was 0, compared to that of $525k domestically.

Overall recoupment from Sales to Broadcasters
International:   0%
US:                  70.3%

DVD Sales

·         DVD sales performed similar to that of VOD

Overall recoupment from DVD Sales

International:   100%
US:                  17.7%

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So let’s take the following as an example, how could this film be financed?


Jason Statham has a large, Worldwide, fan base (Fast and Furious, Transporter, Action movie genre).
Some ways in which this movie could be financed:

·         Due to low budget, would mainly benefit from DVD, VOD sales as will have lower theatrical market release.

·         TV Broadcaster pre-sales, Ch4?

·         VOD pre-sales, NETFLIX? Amazon Video?

·         Distributor (territory) pre-sales – British pre-sales, confident due to genre setting and talent attached.

·         Producer deferment, as well as director

·         Explore soft money avenues

·         Explore Government grants, subsidies and tax-credits


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This post was written by noxford

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