Calculating Premium Content: Movies & Sports

Manajemen Keuangan Stasiun Televisi

Perhitungan Tayangan (movies & sports)

Amelia DayPertemuan Ke-428 Februari 2011

Video(facial recognition)

Pay As You Look

Pay As You Look

Like other content business…

Antre beli tiket…

Like other content business…

Antre beli tiket…

Like other content business…

Antre beli tiket…

Like other content business…

Antre beli tiket…

Same author…

Different players

Different medium

Once upon a time…

O T…

Back to content business

Movie business:

1. Production script fees, wages, actor contracts

2. Distribution cost of reel copies, packing & shipment

3. Exhibition promotion costs, cineplex maintenance

Movie business

Can the economic success of a film be predicted based on any ex ante observed characteristics?

(Charles C. Moul, A concise handbook of movie industry economics, Cambridge:2005)

before the event"

As movie literature recorded…Star

Value

As movie literature recorded…Star

Value

Bankable Stars

Number 1: PRODUCTION

Economies of Scale in Production

- Live performance for 5,000 audience- Live performance for 3,000 audience- Live performance for 1,000 audience- Live performance for 100 audience

COST

Star Value

Number 2: DISTRIBUTION

Economies of Scale in Distribution

- Domestic distribution

- Global distribution

- “Release Window” (cinema, home video, TV, etc.) at different times vs. “Simultaneous Release”

- Straight-to-video release Pay TV

Star Value

Number 3: EXHIBITION

International Viewers

- opened in Finland 13 Oct 2006 (40 copies)- debuted at #2, after The Devil Wears Prada- opened in China 24 Oct 2006 (150 copies) in 70 cities- the movie's international distribution rights have been

sold to more than 30 countries- in Finland the movie grossed €607,038 with 79,050 tickets

sold

Jade Warrior is the first Finnish movie to be released in movie theaters in China

natoonline.org

Other Pipes of Int’l Distribution

Release Window:

1. Theater

2. Home viewing (DVD, Video-On-Demand, Download, Television etc.)

3. Digital cache: Hulu

williamsager.com

Movie Costs

Lara Croft Tomb Raider: The Cradle of Life

- Story rights and screenplay: $ 4 million- Producers: $ 4 million- Director (Jan de Bont): $ 5 million- Cast: $17.25 million- Angelina Jolie: $12 million- Extras: $ 250,000- Other (inc. Angelina's perks): $ 5 million- Production costs: $67 million- Set design and construction: $17.8 million- Visual Effects: $13 million- Music: $ 3.3 million- Editing: $ 3 million- Post Production costs: $ 1.5 million

Total: $118 million

http://en.wikipedia.org/wiki/Film_budgeting

Terminator 3: Rise of the Machines

- Story rights (Carolco and Gale Anne Hurd): $19.5 million- Screenplay: $ 5.2 million- John D. Brancato & Michael Ferris: $ 1 million- Director (Jonathan Mostow): $ 5 million- Producers: $10 million- Cast: $35 million- Arnold Schwarzenegger: $29.25 million

(+ 20% gross profits)- Arnold's perks: $ 1.5 million- Rest of principal cast: $ 3.85 million- Extras: $ 450,000- Production costs: $58 million- Post-production costs: $ 4 million- Visual effects: $20 million- Music: $ 2 million- Other costs: $33.6 million

Total: $187.3 million

http://en.wikipedia.org/wiki/Film_budgeting

Movie Gross

Terminator1, 2, 3, 4

1. Carolco Pictures (1991) 2. Hemdale Film Corporation & Studios: Pacific Western Productions (1984)3. Internationale Medien und Film & C2 Pictures (2003)4. The Halcyon Company (2009)

Terminator 2: Judgment Day ($519,843,345)

TOTAL 4 MOVIES: $1,402,938,567AVERAGE PER MOVIE: $ 350,734,642

Total costs Terminator 3: $ 187,300,000

http://en.wikipedia.org/wiki/List_of_highest-grossing_films* Canada and U.S. gross only.

natoonline.org

natoonline.org

natoonline.org

natoonline.org

TV Window

Broadcast Income

- in-kind donations of time and skills by volunteers (common with community broadcasters)

- direct government payments or operation of public broadcasters

- indirect government payments, such as radio and television licenses

- grants from foundations or business entities

- selling advertising or sponsorships

- public subscription or membership

Blockbuster Package

MTV Networks has acquired the broadcast premiere rights to some of 2010's hit theatrical films from NBC Universal Domestic Television Distribution.

Spike TV, the deal's primary beneficiary, attains rights to "Robin Hood" ($310 million gross worldwide), "Wolfman" ($160 million), and "Green Zone" ($94 million), which target the network's male demographic of Men 18-49.

Comedy Central procures the rights to the broadcast premiere of "Get Him to the Greek" while MTV acquires "Scott Pilgrim vs. The World."

http://www.prnewswire.com

www.trifectaentertainment.com

www.trifectaentertainment.com

www.trifectaentertainment.com

www.trifectaentertainment.com

www.trifectaentertainment.com

More on broadcast release windows per movie title

see schedule samples at:

http://www.ascentsyndication.com/programs/Paramount-Elite.aspx

What about Sports Programs?

More on sports rights contract in other countries, see:

http://en.wikipedia.org/wiki/Sports_broadcasting_contracts_in_the_Philippines

Money Money Money

Money, money, money Must be funny In the rich man's world Money, money, money Always sunny In the rich man's world Aha-ahaaa All the things I could do If I had a little money It's a rich man's world

Next Week: TV Operations