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  1. How exactly does movie box office work? Who gets paid what, and when? How does it all add up? We have the answers right here.

    • Movie Budgets and Costs
    • Ticket Price Revenue
    • Merchandising Dollars
    • Foreign Sales
    • Television Rights, Streaming, and VOD
    • The Bottom Line

    In general, major studios don’t disclose the full budgets for their films (production, development, marketing, and advertising). This mystery arises in part because it costs far more to make and market a movie than most people expect. For example, the production budget for a summer blockbuster like Marvel’s The Avengers is estimated as $220 million...

    Theater attendance has been challenging over recent years, making it even harder for studios and distributors to profit from films. Usually, a portion of theater ticket sales goes to theater owners, with the studio and distributor getting the remaining money. Traditionally, a larger chunk went to the studio during the opening weekend of a film. As ...

    It all started with Star Wars. Since the George Lucas sci-fi saga began back in 1977, the franchise has made billions in revenue from toys alone, not to mention licensing income from other third-party companies. In 2015, Star Wars: The Force Awakensbrought in $700 million in retail sales. This strategy obviously doesn't work for every film. You don...

    When a producer cobbles together the budget for an independent film, selling the distribution rights in foreign territories is crucial. It helps to cover the film’s budget and hopefully brings in revenue. Independent filmmakers can actually make money if they have a great foreign sales agent who can sell their movies in key overseas markets. Produc...

    Once upon a time, it was all about DVD sales. Now, it’s far more about television rights, video-on-demand (VOD), and streaming. For some producers, selling TV and international rights is a significant source of profit because the producer doesn't have to pay for marketing and P&A costs. Films have to leave the theater at some point, but they can re...

    As the saying goes, nobody knows anything in Hollywood. The film industry is in flux, and ticket sales alone don't drive revenue. There’s merchandising, VOD, streaming video, foreign sales, and a plethora of other distribution channelsthat can help filmmakers, producers, and studios turn a profit. So who knows, the little indie that you invest in c...

    • Dina Zipin
  2. Most distributors not only provide the movie to theaters, but obtain ancillary rights to distribute the movie on VHS, DVD, cable and network TV. Other rights can include soundtrack CDs , posters, games, toys and other merchandising.

  3. Movie Gallery paid $860 million, $13.25 per share, and the assumption of $380 million in debt. Stocks closed at $13.85 on January 10 after the news. Blockbuster then dropped its purchase plans, citing anti-trust concerns.

  4. Oct 22, 2007 · Most of the money that a theatre takes in from ticket sales goes back to the movie studio. The studio leases a movie to your local theater for a set period of time. In the first couple of weeks the film shows in the theatre, the theatre itself only gets to keep about 20% – 25% of the green.

    • John Campea
  5. In this full breakdown of how a movie theater business works, you will find out how movie theaters make money, why prices seem to continue to rise, and how you can get the best value the next time you head to the movies.

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  7. May 10, 2010 · Movie Gallery agreed to assume about $350 million of Hollywood Entertainment's debt as a part of the deal. The acquisition made Movie Gallery the second-largest rental chain in the country...

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