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Old 08-08-2011, 11:27 AM
 
Location: France
6 posts, read 5,077 times
Reputation: 10

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Hello,

Today I have open my first blog, about the american movie industry, and my first post (http://movieandstrategy.blogspot.com/2011/08/lethal-weapon-box-office-analysis.html - broken link) underline, trough the example of the lethal weapon movies, that movie revenues are more and more concentrating on its first 3 weeks.

Is there some special rules (I know there is a deal about the percentage on ticket sales for the studios) about movie distribution during the first 3 weeks of a movie release?
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Old 08-08-2011, 11:59 AM
 
7,376 posts, read 12,524,711 times
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An average hollywood movie will make about 120 million from the box office. On top of that it will make about 60 million on dvds, videos, and pay per view. Strong merchandising will make 50 to 200 million. This is obviously more true for childrens movies such as harry potter.

Adult films have a different way of making money after the box office is done. Product placement. For instance James bond had Nokia and BMW all over the movie.

So I guess I wouldnt say they try to make most of their money during the first 3 weeks but instead try to exploit the film for as long ass possible. In that example all you need to do is look at Star wars. George Lucas is one rich mofo because the studio had two choices. 1, was to give him a pay raise. 2 was to sign away the merchandising rights which they did and probably have regretted ever since.
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Old 08-08-2011, 12:45 PM
 
Location: France
6 posts, read 5,077 times
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Thanks,
I didn't know that merchandising could be such a source of revenues.
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Old 08-08-2011, 12:47 PM
 
1,248 posts, read 1,832,801 times
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The average Hollywood movie or the average successful Hollywood film? There are a lot of duds.
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Old 08-08-2011, 12:59 PM
 
7,376 posts, read 12,524,711 times
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Quote:
Originally Posted by poletop1 View Post
The average Hollywood movie or the average successful Hollywood film? There are a lot of duds.
I don't recall him asking about duds but you are welcome to add your knowledge to the conversation.
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Old 08-08-2011, 01:55 PM
 
1,248 posts, read 1,832,801 times
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Quote:
Originally Posted by skel1977 View Post
I don't recall him asking about duds but you are welcome to add your knowledge to the conversation.
Considering a hypothetical film that made $120 million at the box office last year would be the 21st highest grosser of that year, the number of $120m average does not make sense when hundreds of films are released from Hollywood. Not sure what the average is, but it has to be significantly lower than that.


2010 Yearly Box Office Results - Box Office Mojo


As for duds and bombs, they exist but you need to consider budget for that. A documentary that costs $100K and earns two million is a hit for documentaries whereas a drama that cost $40 million to make and earns $43 million is a dud, breaking even at best when you consider the distribution and promotion costs.
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Old 08-08-2011, 02:03 PM
 
7,376 posts, read 12,524,711 times
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Considering I typed all that off the top of my head from what I remember(or maybe not?) you can stop punishing me for the use of the word "average". Maybe it was wrong to use that but I typed that in a matter of minutes.

Anyways as you pointed out its not that hard to find out how much a movie has made so I see no sense in debating this.
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Old 08-08-2011, 02:11 PM
 
1,248 posts, read 1,832,801 times
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Quote:
Originally Posted by skel1977 View Post
Considering I typed all that off the top of my head from what I remember(or maybe not?) you can stop punishing me for the use of the word "average". Maybe it was wrong to use that but I typed that in a matter of minutes.

Anyways as you pointed out its not that hard to find out how much a movie has made so I see no sense in debating this.
You consider it punishment that someone points out the number you use does not seem to add up at all? Ok. I wonder what it is if someone mentions that there is also product placement in children films, DVD sales can be big for non-children films or that the filmmakers do not necessarily own royalties on merchandising, if there even is any merchandising. Not sure if anyone else on any forum spends more than minutes for a post, but whatever.

Anyway, the producers either want to make as much profit as possible and/or receive attention for awards. Three weeks do not matter as much as the entire run. Some films have initial limited releases or gain life as time goes by, like Titanic. Typically it is true that the first few weeks are the biggest earners.
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Old 08-08-2011, 03:59 PM
 
32,538 posts, read 29,319,241 times
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Quote:
Originally Posted by skel1977 View Post
2 was to sign away the merchandising rights which they did and probably have regretted ever since.
The studio had NO idea how much $$$ they were loosing. Lucas is one smart guy.
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Old 08-08-2011, 04:08 PM
 
Location: Syracuse, New York
3,096 posts, read 2,403,766 times
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I believe that with every succeeding week after the first week, the studio loses a percentage of its share of the gross while the theaters gain a percentage.
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