How film makes its money backAlex Cameron, Sept 2009

UK FILM COUNCILBRITISH FILM INSTITUTECINEMA EXHIBITORS ASSOCIATIONBRITISH VIDEO ASSOCIATIONENTERTAINMENT RETAILERS ASSOCIATIONFILM DISTRIBUTORS ASSOCIATIONSCREEN DIGESTNIELSEN EDIHOLLYWOOD REPORTERIMDB PROOFFICIAL UK CHARTS COMPANYdata sources

A film is created to make money from it being exhibited.why

Copies of the film are released for exhibition in different stages.commercial lifecycleSource: UK Film Council, CEA, BVA, ERA

A film recoups most of its budget through DVD.the bottom lineSource: Screen Digest, BVA, ERA

The more times and places a film is exhibited, the more money it generates. many middlemenSource: UK Film Council, BFI

There are around 45 international territories in which the rights to exhibit films are regularly traded.International buyersSource: Nielsen EDI, UK Film Council, BFA, British CouncilFigures in 000s

TERRITORYMAIN LANGUAGEMAXMINPROBACTBeneluxDutch/French25102020CanadaEnglish/French50202020UKEnglish50201010FR CanadaEnglish/French2510100FranceFrench6015200GermanyGerman75255050GreeceGreek10550ItalyItalian60102020IcelandIcelandic10240IsraelHebrew/Arabic10250PortugalPortuguese 10230SpainSpanish60152020ScandinaviaVarious50202020Czech.Czech/Slovac10240HungaryHungarian10250PolandPolish10220RomaniaRomanian10220CISRussian15550YugoslaviaBCS10230TurkeyTurkish10240EgyptArabic10220

TERRITORYMAIN LANGUAGEMAXMINPROBACTA/C/U/PSpanish20255BrazilPortuguese 207100ColumbiaSpanish10250MexicoSpanish15550Peru/Equa/BolSpanish10220VenezuelaSpanish10220C.AmericaEnglish10222West IndiesEnglish10222India Hindi/English3010100PakistanUrdu/English10240Hong KongChinese/English15555IndonesiaIndonesian10233JapanJapanese10020500KoreaKorean80405050MalaysiaMalay10222PhilippinesFilipino/English15550SingaporeEnglish/Chinese10220TaiwanMandarin25550ThailandThai10250BurmaBurmese10230South AfricaZulu/English25101010AustralasiaEnglish50102020USAEnglish200205020

There are around 20 major international marketplaces.AFM, Los Angeles (February)San Sebastian, Spain (September)Venice Festival, Italy (September)Bangkok Festival, Thailand (January)world marketsSource: IMDB Pro, UK Film Council

Sales agents for film rights tend to use the same set of generic internal percentages to make estimates as to how a film will sell internationally.agent guess-timatesSource: Sales Agents (private communication)

NORTH AMERICAEUROPEFAR EASTLAT.AMERICAOTHER33%39%16%4%9%USGERMANY (10%)JAPAN (10%)BRAZIL (1%)AUSTRALIA/NZ (3%)CANADAUK (8%)S KOREA (3%)MEXICO (1%)EAST EUROPE (3%)FRANCE (7%)TAIWAN (1%)ARGENTINA (1%)MIDDLE EAST (1%)ITALY (4%)OTHER (2%)OTHER (1%)S. AFRICA (1%)SPAIN (4%)OTHER AFRICA (1%)NORDIC (3%)OTHER (3%)

In practice, only a core set of territories have a regular and dependable appetite for buying film rights outside the US.real-world salesSource: Distributors (private communication)Figures in 000s

COUNTRYHIGHLOWAVERAGEASIAJAPAN601035INDONESIA201015KOREA601538HONG KONG201015INDIA1037TAIWAN351023PHILIPPINES1539OTHER25515AUSTRALIA/NZ502035EUROPEGREAT BRITAIN703553GERMANY803055FRANCE703553ITALY803055SCANDINAVIA852555SPAIN 752048OTHER601538SOUTH AMERICABRAZIL401528MEXICO502035OTHER351023MIDDLE EAST15410

A film exhibition sale is generally a 75-25 split between a vendor (cinema / retailer / TV) and a distributor, who deducts 35% commission + costs off the top.box office structureSource: UK Film Council

SHAREREMAINDER VAT17.5%82.5% VENDOR (75%)62.0%20.5%

DISTRIBUTOR (35%)7.2%13.3% DISTRIBUTOR COSTS (50%)6.7%6.7% PRODUCER6.7%0

Cinema hasnt been seriously affected by the recession.3660 screens in 726 sites with 865, 599 seats, and an average ticket price of 5.18. An average of 236.4 seats per cinema, and 4.7 screens per site.uk cinema overviewSource: Screen Digest, CEA, UK Film Council

EXHIBITORSITESSCREENS% SCREENSODEON10783423.1CINEWORLD7475821VUE6360816.8NAT. AM212747.6WARD ANDERSON242065.7APOLLO13772.1CITY SCREEN18511.4REEL CINEMAS13481.3MOVIE HOUSE5391.1AMC2280.8MERLIN9260.7OTHERS37565718.2TOTAL7263,610100

40% of independent British films never gross more than 100k at the box office. painful truthSource: CEA, IMDB Pro, Nielsen EDI, UK Film Council

COSTS Age certification1,000 35 film prints5,000 Paper printing4,000 Trailer4,000 PR4,000 Advertising6,000 Shipping1,000 Misc500Balance25,500

RETURNS GROSS BOX OFFICE150,000 (less 17.5% VAT)127,659 Distributor revenue (25%)31,915 (less 35% fees, 11,170)20,745 (less costs, 25,500)-4,755Balance-4,755

Opening in over 100 screens significantly increases cost.release planningSource: UK Film Council

Slumdog Millionaire has now overtaken Four Weddings & A Funeral as the most successful 100% independent British film in UK cinemas.british independenceSource: IMDB Pro, BIFA, UK Official Charts Company

BUDGETWEEKSSITESUK GROSSDIST SLUMDOG MILLIONAIRE 15,000,0001444931,283,374 PATHE FOUR WEDDINGS & A FUNERAL7,000,0001627,760,000 CARLTON TRAINSPOTTING3,500,000812,430,000 POLYGRAM ST TRINIAN'S13,500,000838612,180,000 ENT KEVIN & PERRY GO LARGE3,200,000835710,460,000 ICON EAST IS EAST1,900,0001625310,370,000 FILM4 VALIANT40,000,000164498,520,000 ENT

In the last few years, most 100% British independent films have used cinemas as a marketing platform for DVD and international sales.british receiptsSource: IMDB Pro, Nielsen EDI

BUDGETWEEKSSITESUK GROSSSALESDISTSLUMDOG MILLIONAIRE 15,000,0001444931,283,374PATHEPATHEHOW TO LOSE FRIENDS & ALIENATE PEOPLE 28,000,00044534,100,000INTANDEMOPTIMUMADULTHOOD 10,000,00041793,350,000INDEPENDENTPATHEOUTLAW2,500,00032861,519,736PATHEPATHEHAPPY-GO-LUCKY7,000,00051141,413,253SUMMITMIRAMAXTHE EDGE OF LOVEN/A61771,127,119CAPITOLLIONSGATEBRIDESHEAD REVISITED20,000,0004256874,658HANWAY2 ENTERTAINI WANT CANDY1,000,0002257730,452EALING STUDIOSMAGNOLIATHE COTTAGE 2,500,0003260598,221PATHEPATHEBRICK LANEN/A296413,015THE WORKSOPTIMUMEDEN LAKEN/A3184404,758PATHEOPTIMUMFLASHBACKS OF A FOOL N/A1272246,072ARCLIGHTBVIA BUNCH OF AMATEURS N/A2186201,849ODYSSEYCINETICTHE CHILDRENN/A2132199,259PROTAGONISTVERTIGOHALLAM FOE 3,800,000298132,972INDEPENDENTBVISHIFTY100,000451131,181PROTAGONISTMETRODOMESOMERS TOWN600,000162121,345THE WORKSTHE WORKSOF TIME AND THE CITY 500,00012557,195HANWAYHURRICANEFILTH AND WISDOM1,000,00061012,000KATAPULTPATHE

ROYALTY MODELOFF THE TOP MODEL49% of all DVD rentals are now generated online.The distributor pays the producer a 35% royalty.The distributor takes 35% commission + 25% costs.rental dealsSource: UK Film Council, Screen Digest, BVA, ERA

SHAREREMAINDERVAT17.5%82.5%VENDOR (50%)41.3%41.3%DISTRIBUTOR (65%)26.8%14.4%PRODUCER (35%)14.4%0

SHAREREMAINDERVAT17.5%82.5%VENDOR (50%)41.3%41.3%DISTRIBUTOR (35%)14.4%26.8%DIST. COSTS (25%)10.3%16.5%PRODUCER16.61%0

DVD sales data is closely guarded and rarely released other than for overall market statistics.sell-through dealsSource: UK Film Council, BVA, ERAROYALTY MODELOFF THE TOP MODELThe distributor pays the producer a 12.5% royalty.The distributor takes 35% commission + 50% costs.

SHAREREMAINDERVAT17.5%82.5%VENDOR (50%)41.3%41.3%DISTRIBUTOR (87.5%)36.1%5.2%PRODUCER (12.5%)5.2%0

SHAREREMAINDERVAT17.5%82.5%VENDOR (50%)41.3%41.3%DISTRIBUTOR (35%)14.4%26.9%DIST. COSTS (50%)13.5%13.5%PRODUCER13.5%0

Supermarkets have come to dominate DVD sales, pushing the average retail price of a DVD to 7.42.Source: Screen Digest, BVA, ERAwalmart syndrome

Pay-Per-View & VoD tend to be more profitable as the costs of sale are borne by the TV platform.pay-tv dealsSource: UK Film Council

SHAREREMAINDERVAT17.5%82.5%VENDOR (50%)41.25%41.25%DISTRIBUTOR (35%)14%27.25%PRODUCER27.25%0%

Subscription & free TV fixed-fee licensing deals depend on the performance history of the film.broadcast dealsSource: UK Film Council

Recoupment is organised into a corridor and made from a central collection account.the corridorSource: Film Finance Handbook, UK Film Council