Chapter 603: The DVD Industry
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As of the end of July, the number of North American theaters of "Iron Man" was less than 400, and the box office sales fell below $200,000 that day, and it was basically impossible for the North American market to make a big difference, but in the past 15 weeks, the film's North American box office has reached 381.24 million US dollars, including "Pirates of the Caribbean 2: Soul Coffin", all summer films are pressed below, and it is a well-deserved 2006 North American summer champion.
Two years after losing that spot, Duke is once again dominating the summer spot.
However, the overseas performance of "Iron Man" is relatively inferior, and in almost the same time period, the film received $312.66 million from nearly 100 countries and regions.
"Iron Man" combined for $693.9 million at the global box office.
Although the total box office is infinitely close to $700 million, the global box office growth of "Iron Man" has been weak, and it is difficult for Duke and Warner Bros. to say whether it will eventually exceed the $700 million mark.
Some people will definitely want to push the final box office figure of "Iron Man" past $700 million, especially in the long run, which is beneficial to the plans of the Marvel franchise, and Marvel's top brass has a fund ready to invest at any time.
In addition, the DVD release of "Iron Man" is also in preparation, and it will be released to make money when the film exhausts the last box office potential in North America.
Since the beginning of the new century, DVD can be said to be one of the major Hollywood production and distribution companies in terms of income, and it is not an exaggeration to say that Hollywood is relying on DVD to make money, some popular films such as "Spider-Man" and "The Lord of the Rings Trilogy", just in North America, DVD sales in the first week can exceed 100 million US dollars, and those films that can enter the top 10 of the annual box office list, except for extremely few examples, most of the final DVDs can sell for about 100 million US dollars.
The production cost of DVDs is much lower than that of the once-popular videotapes, and at most no more than one to three percent of the wholesale price that the producer and distributor sells to the seller. Even when marketing and other costs are factored in, profit margins are terrifying.
Generally speaking, the producer will provide the underwriter with a sum of about 5% and no more than 10% of the publicity and promotion funds.
There is also a lease, and the division of the lease is more complicated.
First of all, the tenant will give a reserve price, which means that whether the property is rented or not. Producers can get a sum of money from the rental company for about $3 to $10 each.
There are several different ways to lease the disc, the normal rental fee is the main source, and if the rented disc is not returned on time, the lessor will dispose of it as an automatic sale. That is, the money of the rental disc user is deducted according to the sales price, and the current general way is that the producer takes $1 to $2 from each rental income, and the price is determined according to the box office figure of the film.
In other words, the higher the box office, the higher the percentage of the film, so the box office is the basis for a movie to be profitable.
If it's a sale, there's also a percentage of each draw, which is higher, around $5 to $10.
The rental fee is not always accrued, and there is a valid period according to the contract, which is about 50 weeks. When it expires, the renter must destroy a certain percentage of the DVDs and either return the rest to the studio or buy them at a certain price per sheet.
For a single movie, if it is a hit, the studio can earn $500 to $8 million from a single renter, and that's just the rental part, and the proportion of the sales part is more than that, which means that a hit film Hollywood can earn tens of millions or even hundreds of millions of dollars from DVDs, and this income is almost net profit.
That's why Hollywood is making money on DVDs.
But. Anyone who has paid attention to the numbers knows that the heyday of DVDs is coming to an end, and this year, according to a Warner Bros. count, Hollywood DVD sales in the first half of 2006 fell by 6.3 percent compared to the first half of 2005.
Although Hollywood's DVD industry still maintains a scale of nearly $2 billion. But it is not difficult for those with a long-term vision to see that this glory will not last long, and even decline sharply in the next three to four years.
Why is this happening? Is it that the audience is tired of Hollywood's commercial blockbusters?
The answer, of course, is no, the audience for Hollywood movies has not shrunk, but with the rise of internet video sites, those teenagers who make up the mainstream of the film market. They have turned their attention to online on-demand and online downloads.
No one knows better than Duke that the rise of movies on the Internet has directly reduced the size of Hollywood's DVD industry by two-thirds.
There's never a shortage of elites in Hollywood, and many people have discovered this.
On the one hand, producers are also looking for ways to reduce costs to ensure that each disc can generate more profits; On the other hand, while taking defensive measures, the major studios are also preparing for the day when the film will completely disappear from the silver disc.
In the future, offline distribution of movies will inevitably rely more on the on-demand services of online or cable satellite TV companies, which has reached $800 million in the market, and has surged by nearly 20 percent last year alone, according to media research firms.
Both Warner Bros. and Duke Studios are planning to release online or pay-TV versions of the films in the future, rather than waiting weeks for the film's DVD release, to release them simultaneously.
In this way, it can attract young people who will not buy DVDs.
Another shift in the pipeline is to allow viewers to download the online version of the film as soon as it is released, and this could also be before the DVD release, an attempt to charge customers an additional fee for early HD viewing of the film.
It can be said that how to use the Internet to make profits from the movie in theaters is the focus of research by major companies.
Even, some people's eyes are also aimed at the online income of the film.
As we all know, Hollywood has never been a good place for mutual affection, it can be said that good people and soft-hearted people basically have no room to survive here, this industry has attracted countless people and companies, with capital, fame and interests in the constant struggle, this struggle is also reflected in the Hollywood between several major associations.
The most famous associations in Hollywood are none other than the Producers' Union, the Directors Guild, the Editors' Guild and the two Actors Guilds, and there are also contradictions and entanglements of interests between these four associations.
Of course, it's basically a conflict between the Producers' Union and other associations.
At present, the contract between the Producers Union and the Screenwriters Guild is about to expire at the end of 2007, and the Producers Alliance, which represents the interests of the studios, has begun preliminary negotiations with the Screenwriters Guild, but the negotiations have not gone well, and the Producers Alliance does not want to easily meet the conditions of the Screenwriters Guild.
In 1988, the Screenwriters Guild called on screenwriters to go on a 22-week general strike to get a fixed percentage of the revenue from the filmmakers and television broadcasts, and now they are eyeing the film's Internet revenue.
Not only the Screenwriters Guild, but also the Directors Guild and the Actors' Guild also asked for a share of the revenue, but they encountered completely different treatment from the Screenwriters Guild, although there were also major differences with the Producers Union, but there was room for negotiation, rather than being directly rejected by the Producers Union like the Screenwriters Guild.
This also reflects the status of screenwriters in Hollywood from the side.
The script is one of the foundations of making a film, but in quite a few projects, it doesn't seem that important.
Duke is well aware that the Producers' Union will make certain concessions to the Directors Guild and the Actors Guild, but it will not easily back down to the Writers Guild.
Future strikes are simply inevitable.
He knew that a strike would definitely happen, that it would affect his profits, but he could not do anything about it, and that this conflict of interest could not be resolved by one person or a small group.
In fact, even if the strike is effective, the status of Hollywood screenwriters will not improve much.
Nowadays, everyone, including the production company, believes that the biggest weakness of Hollywood movies is the lack of originality, or that the Hollywood system is trying its best to combat innovation, and that producers are afraid of the risks that come with innovation, so they would rather make a sequel or adapt a best-selling book or comic book than support a new script full of ideas.
For example, let Duke choose, someone recommended a script to him, a book with a novel story and structure, and only needed to invest $50 million; The other is a vulgar script adapted from a popular comic, with an investment of $80 million, and he will definitely choose the latter without hesitation.
Ninety-nine percent of Hollywood's producers make the same choice.
The remaining one percent, after accepting a script full of creativity, will generally be shelved, and some people may find it a little interesting, get into the so-called Hollywood script blacklist, and then hang it for many years, slowly waiting for someone to invest......
In Hollywood, a big film factory, most films, even literary films, must comply with the rules of the assembly line, and the script will not be an exception, even if it is a book like "The Dark Knight", Duke handed it over to the following screenwriting team after finishing the outline and character design, and a total of 22 screenwriters participated in the writing of this script.
These screenwriters have a clear division of labor, and they distinguish and write the film's political dramas, love scenes, and action scenes...... Even the dialogues are divided into threats, romances, humor, and action are written separately.
A movie of the scale of "The Dark Knight" must be a product of the Hollywood assembly line, and such a large-scale investment, if it is not produced in the assembly line mode, Warner Bros. will have to go crazy.
As August approached, preparations for The Dark Knight intensified, and Duke traveled several times between Warner Studios, Hughes Aircraft and Chicago to see how preparations were progressing.
Perhaps it was the success of "Batman: Time to War" that brought a certain amount of publicity, the Chicago government gave "The Dark Knight" strong support, and the mayor also met with Duke.
When Duke returned to Los Angeles from Chicago in mid-August, he saw Heath, who had been missing for more than a month. Ledger. (To be continued.) )