In Hollywood, the DVD industry is becoming more and more important, and it is not an exaggeration to say that DVDs have saved some studios. Pen × fun × Pavilion www. ｂｉｑｕｇｅ。 ｉｎｆｏ

Most Hollywood movies can't recoup their costs at the box office, and there are very few people who generate profits, and failed films like "Catwoman" can bring in revenue from dolls, figurines and peripheral licensing, but this is the patent for film adaptations or super big productions, and it is impossible to appear in films with only a few million dollars or even hundreds of thousands of dollars of investment.

Videotapes, DVDs, and television broadcasts have become the way for these films to make money, and they are also the profit points for most Hollywood films.

DVDs, which are cheaper and easier to circulate than videotapes, have even saved some of Hollywood's biggest studios to some extent.

The most typical is Sony Columbia Pictures, after "Spider-Man" was released from theaters, Sony Entertainment immediately released the DVD of the film, the regular version was priced as high as $19, and the deluxe set was as high as $39, selling more than 5 million units in the first week alone, earning more than $120 million, and the DVD sales in the year of release were as high as $215.3 million!

That's just North America.

High-grossing movies, in today's era, almost all bring super high DVD sales.

For example, last year's hit cartoon "Finding Nemo" sold more than $150 million in sales in its first week on DVD, far outperforming the North American first-weekend box office.

Murphy remembers very well that these years are the best years for DVDs, and it won't be long before DVDs will decline rapidly with the rapid development of online video on demand and downloads.

"Deadpool" undoubtedly met a good era.

At the end of July, Twentieth Century Fox officially launched the DVD of "Deadpool" into the North American market, with large institutions such as Walmart, Target, and Amazon as the main sales carriers, and at the same time on e-commerce, such as eBay and Amazon.

As for the sales situation, it can only be described as hot.

Although the DVD discs are not as good as "Spider-Man" and "Finding Nemo" because of the scale of "Deadpool", the weekly sales figures are equally gratifying, easily surpassing the $100 million mark, reaching as much as $112 million.

Compared to the box office figures, which need to be divided layer by layer, the profits brought by DVDs are actually higher.

Twentieth Century Fox was able to get the most profits, and the wholesale price of a DVD studio sold to sellers was not low, ranging from $10 to $20 depending on the film, "Deadpool" was $15, and the deluxe set was $25, while DVD pression was cheap, often only one percent of the selling price.

Almost all of this money goes back to the studio, but the studio usually provides the underwriter with a sum of about 5 percent and no more than 10 percent of the publicity and promotion funds.

It's just a short-term DVD, and there's a long-term rental, and Hollywood has an extremely mature way of operating in this regard.

Compared to simple and straightforward sales, the sharing of DVD rentals is more complicated.

First of all, the rental company will give the studio a reserve price, which means that whether the film is rented or not, the studio can get a sum of money from the rental company, about 3-10 US dollars depending on the box office price of each DVD, the higher the box office, the higher the floor price.

There are several different ways to rent, the normal rental fee is the main source, as well as the membership fee, in addition, if the rented disc is not returned on time, the rental company will be treated according to the automatic sale, that is, according to the sales price to deduct the rental disc user's money, now the general way, the studio from each rental income 0.5-2 US dollars, the price is determined according to the box office figure of the film, if it is a sale, there is also a proportion of each pump, this number is higher, about 5-10 US dollars.

The lease fee is not always accrued, according to the contract there is a valid time, about 25-80 weeks, the higher the box office, the longer the cycle.

When it expires, the renter must destroy a percentage of the DVDs and either return the rest to the studio or buy them for a dollar each.

In addition, all bad debts, bad credit, and promotional and mailing costs will be deducted from the revenue share.

For a single movie, if it is a blockbuster film like "Deadpool", the studio can earn 5 million to 8 million US dollars from a single renter, and this is only the rental part, and the proportion of the sales part is more than this, which means that a box office hit, Hollywood can earn tens of millions of dollars from DVD rentals, and this income is almost all net profit.

At the same time, Twentieth Century Fox also negotiated a deal for the first round of television rights to "Deadpool", selling the first round of television rights to the film for five years for a high price of $25 million.

All of this income is closely related to Murphy, and his contract as a director stipulates that he can share dividends from it.

After negotiating the TV rights fee, Twentieth Century Fox paid Murphy the last million of the $3 million basic director's salary.

Then, Murphy's lawyer, Robert, and David, the accountant, began to press Twentieth Century Fox to meet the sharing clause in their contract on time.

Murphy's directorial contract has a tiered incentive clause.

The agreement is based on the film's $60 million production cost, and if "Deadpool" reaches the $60 million cost line at the North American box office in the future, he, the director, will receive 1 percent of the North American box office as a reward, and once the North American box office rises to 100 million US dollars, this proportion will increase to 1.5 percent, $150 million will increase to 2 percent, $200 million will rise to 2.5 percent, and $250 million will be 3 percent.

There is also a note clause that once the film crosses the $300 million mark at the North American box office, Murphy, the director, will receive five percent of the total North American box office as a reward.

No one would have imagined that "Deadpool" would break the $300 million mark at the North American box office.

Twentieth Century Fox signed such an agreement, not to bet on Murphy, but to motivate the creative team with the director as the core to go all out, although Hollywood films have many sources of income, but the box office is the basis of all this, just like DVD sales and rentals, without high box office to suppress, there is no price at all.

Moreover, "Deadpool" grossed $300 million and $250 million at the North American box office, which is very different from the all-round revenue that Twentieth Century Fox can bring.

Murphy was able to take five percent of the North American box office, or $15 million, plus a base salary of $3 million, and he made a whopping $18 million as a director in "Deadpool."

This is a fairly high number, and only first-line directors can get the single-round income figure.

On the other hand, he can also get two percent dividends from the various North American rights of Deadpool, which are long-term income.

After Twentieth Century Fox received a share of the North American box office of "Deadpool", Murphy not only demanded that the other party pay his personal remuneration on time, but also demanded that the return on Stanton Studios' investment be paid off in the two months after the film was released as stipulated in the contract.

"Deadpool" cost $60 million to make, and Stanton Studios invested $15 million of it, which is a quarter of the film's profit after all costs are removed.

Twentieth Century Fox still wants to continue working with Murphy, and with Carla Firth in the field, Stanton Studios has not encountered much obstruction, and Hollywood companies will not do too much blatantly with investors in the industry like they do with foreign funds.

What's more, now everyone can see that Murphy is a big potential stock, and continuing to cooperate may bring more profits.

After deducting various taxes and fees, Twentieth Century Fox received a total of $150 million in North American box office revenue from theaters.

As we all know, this part of the money is not profit.

Twentieth Century Fox first took its own distribution commission, more than 10 percent of the North American box office, more than $30.7 million, then advanced publicity and marketing expenses, up to nearly $40 million, and then up to $15 million in copy production costs, and now that digital projection technology has not been popularized, copy production costs are still high.

In this way, Twentieth Century Fox will take $85 million first.

Murphy's box office share also needs to be factored in, and almost all of the main creators signed a basic salary plus share remuneration agreement, although others are not as high as Murphy's share ratio, but together they are more than 10 million US dollars.

In addition, the warehousing, travel, insurance, legal and accounting expenses incurred during the screening process should also be included in the cost, and the film is a trade union filing project, and a certain percentage of the fee needs to be paid to the trade union, although it is not much, but it cannot be in arrears, otherwise it will be a big trouble.

These bits and pieces add up to nearly five million dollars.

The total cost of a film is quite expensive, far from the cost of production, excluding the $85 million of Twentieth Century Fox, the others add up to $30 million.

The remaining $35 million will be shared between Studio Stanton and Twentieth Century Fox in proportion to the investment.

Distribution companies are in such a dominant position that Stanton Studios can't recoup its investment with a blockbuster like Deadpool, which is only one of the film's many revenue streams.

Today, "Deadpool" grosses nearly $560 million worldwide and more than $250 million overseas.

Although Twentieth Century Fox can get different proportions of the share due to different sharing policies and taxes in different countries and regions, in general, the distribution company can get about a quarter of the overseas box office, and Stanton Studios can also participate in the revenue sharing of this film.

The box office is only a part of the film's revenue, and there is also peripheral revenue, and in North America alone, the DVD and TV rights of "Deadpool" sold a horrific figure, and Stanton Studios can also take a quarter of the cost of paying Marvel Comics and other costs.

In early August, Twentieth Century Fox paid the first share of the investment to Stanton Studios under the contract. (To be continued.) )