Hmv and blockbuster essay

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Hmv and blockbuster essay

I have heard people on both sides wax lyrical about how they have the raw end of the deal. The second question of how much money ends up with the filmmakers presents a different challenge: However, most films go through the Hmv and blockbuster essay basic steps of recoupment, meaning we can trace the common route between box office income and profit for the filmmakers and investors.

It might help us to look at the second question first, i. Income comes in from a variety of sources and the money is then handed back to the filmmakers via a number of third parties.

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Along the way, these third parties can recoup the money they spent up front promoting the film and also charge a pre-agreed fee for their work. Typically, the investors are repaid in full, and then the money is split In many cases, investment deals can be slightly more complicated, such as: The final recoupment waterfall for a real film will rarely be as neat as my example.

Some complicating factors could include: Each country the film is distributed in could have different tax rates and rules around distributing content. Interest can sometimes be factored into money spent up front. Currency fluctuations will affect income.

What share of box office income do cinemas keep? This is because before we get our hands on box office income, there are two big deductions. Some countries also apply other taxes, e.

Hmv and blockbuster essay

The other big deduction is the amount the cinema a. This is a rather contentious figure as different corners of the industry disagree vehemently as to what split is normal. When I interviewed UK cinema staff inover a third claimed that high ticket prices were due to cinemas handing over most of the money.

Some were quite senior and I am confident that the figure I built up is an accurate reflection of the UK market as it stands today. Here are the salient points: The split between exhibitors and distributors can be different for each film and is a point of negotiation when discussing the deal.

The split changes over time, in favour of the exhibitor. Distributors can usually negotiate a better deal in the opening week or two and so the longer a movie plays, the more the exhibitor will keep from each ticket sold.

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That said, most of these titles have a minimum guarantee attached, to prevent the distributor from getting pennies. The UK has among the highest exhibitor splits in the world.

This is partly due to the relatively high cost of media advertising in the UK and also due to historic deals between British cinemas and distributors. The power in the sector is shifting — in both directions. As more movies than ever before are being pushed onto the UK theatrical market, exhibitors have increasing power to demand better terms from all but the biggest movies.

The smaller films are being squeezed by exhibitors and the big films are squeezing the exhibitors. In the words of someone senior in UK distribution:'Harry Potter: Wizards Unite' was originally slated for release this year.

Read this essay on Hmv Business.

The recoupment waterfall

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There will be many benefits for a business operating from the Internet. Here I will talk through some of them and discuss how HMV and Blockbuster have. The Hollywood Reporter is your source for breaking news about Hollywood and entertainment, including movies, TV, reviews and industry blogs.