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Wednesday, October 3, 2018

Let’s know that, How to make Money Hollywood movies and What’s the Business Model?

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Let’s know that, How to make Money Hollywood movies and What’s the Business Model?
Hello, Friends!
Welcome to www.lovesitzone.in and thanks to live and support. Today I discuss you about one more topic that How to make Hollywood movie and what’s the business model? So let’s start-
You must know that the Hollywood movie budget is higher than Bollywood movies. If we talk about big movies like Avenger, then their budget is more than 30 times because many such Visual Effects, Graphics, Stunts are made in this movie, and many popular actors are working in it so much more. But let me tell you that all this movie costs only 50%. Then where do spend 50% money of studios? And you must have thought of where so many ways to recover and how to earn profits? So today I’m going to talk to you about this topic that how to make money and what’s the business model?
Avenger, you must know that this is an American movie based on Marvel Comics, which produces Marvel Studio, so far 3 movies have been made in the Avenger movie series and this movies budget are-
Avenger-  $220 Million
Age Of Ultron-  $365 Million (Which is the second most expensive film in the word)
Infinity War- $320 Million (which is the third most expensive film in the word)
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Movie Budget

Whenever a movie is made, it passes through these four steps-                  

Development
Pre Production
Processing
Post Production

     The producer pays for the expenses they have. As I said, 50% of all movies are costing only. So where do the other repees expense? There are two things-
·        Marketing
·        Print & Distribution
Talking about Marketing- these films are released on such a large scale that about 40% of the film’s budget is put on its marketing because in most Hollywood movies, only a month or two weeks of the film remains popular, so the studios have to ensure that people get awareness and excitement for the movie so that anyone can visit this movie.
Print & Distribution- Studios send physical copies of movies to cinema theatres. What was the first time that a 35mm celluloid film was used in the movie distribution, but nowadays most of the countries use hard drives. In this hard drive, a movie from 10 to 100gb is N-code, which is called DCP (Digital Cinema Print) this hardware contains a small file that controls the permissions of a large file which means that cinema can already be sent to the theatre and there will be no concern that movie leaks do not happen. So the movie market costs 50% of the cost.

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Now we talk about how movies Earn Profit?
There are 5 things, which are-
ü Theatre
ü Satellite Rights
ü Home Entertainment
ü Merchandising
ü Video On Demand
Theatre- the distribution and company in which it is formed becomes a strategy that when and where to release the movie in the country and you too would have noticed that, in many countries, movies are released at different time zones because it is the studio’s strategy to maximize to return. Theatre is the biggest source of movie income.
Satellite Rights- The TV channels that contain the demand limit for the amount paid to that studio are shown on the movies TV. Satellite earns 10 to 15% of studio move income.
Home Entertainment- there are physical DVD copies of movies that are going to be sold, which has reduced the people in recent times. For the reason that the studios have comes into tension that home entertainment is losing money.
Video On Demand- you may have seen that online Netflix or Amazon Prime Video can see through the internet through movies by paying users. Even this studios earn, but this is not so popular, even then movie studio been to help with the either earn this still, movie studios are able to earn 4 to 5 percent. However, the importance of growing in the future, they will earn through VOD through good earnings.
And now the Final Income source is, Merchandising- this means that the producer, the studio has license to carry the character, item and places it is displayed inside the movie. By which they sales thousands of types of products, some of which are men’s products, toys, t-shirt and bags etc. The source of this merchandise earn more profit for these superhero types such as movies. Movies studio retrieve almost 50% from merchandising. So talk about Avenger movie then it has-
$1500 Million, Age of Ultron $1300 Million and Infinity war box office collection is $1.5 billion till now..
So the question now is, do all the Hollywood movies earn so much? So, let me tell you that many Hollywood movies are of big budget which are risk to make, so they have to face many problems in earning.
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