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View Full Version : How do production companies make money?


naimas
06-09-2004, 02:59 PM
Sorry if this has been asked before. I tried the search but couldn't find anything about it.

I notice a lot of production companies around, somebody must be making some money.

E J Pennypacker
06-09-2004, 03:21 PM
They make money when the film (if the film) is released at the cinema (Box Office takings). Then released at Blockbusters (the VHS/DVD rental arena). Then when they are sold at the stores (VHS/DVD rentals). Then the CD sound tracks. Then the books. Mugs. T-shirts. And such and such. Then the movie is released into other countries, and the whole process is repeated over and over until someone gets very rich...

EJ

Done Deal
06-09-2004, 04:16 PM
The above is part of it, yes. But production companies are of course run by people. When the producer/owner of the company gets their film into development and then production they receive a fee for producing it. That fee might be anywhere from say $250,000 to a few million. The money that comes into them goes towards paying for their time as well as the company's as a whole. Also, some companies have overhead deals in which their office space is paid for/provided and some of their employees are paid for along with general day to day expenses; so that helps too.

naimas
06-09-2004, 06:50 PM
So if I run say, a security company and have X amount of dollars coming in I can start a production company to create my films and just hire people who know about the film process?

jkk808
06-09-2004, 07:13 PM
Yes.

Happens all the time.

Even for people without X money coming in that they wanna funnel into making movies and instead seeking out investors to finance their projects.

naimas
06-09-2004, 07:43 PM
Thanks for the encouraging word. I am glad I won't be the only one then.