B-Side has a new On-Demand theatrical program that launches small films theatrically for only about 8, 9 grand total. Purely an effort to drive potential DVD sales, it involves partnering with companies, publications, and organizations that support the film (as well as a perfectly marketable genre/subject matter). Here is a case study on how the stoner doc Super High Me made 3.4 million bucks in DVD. Check it out after the jump:
Theatrical release is essential to the film business. We believe there is nothing that will ever replace the experience of sitting in a dark room with a group of people to watch a movie.
However, of the 75,000 or more films made every year, only about 600 are released theatrically in US. The reason is that the majority of films lose money in theaters. The ‘average’ studio film spends $36 million on prints and advertising (P & A). That same ‘average’ film earns $46 million at the box office. However, the box office is split with theater owners, and distributors typically receive only 40-50% of the box office takings. That means that the ‘average’ studio film loses $14 million on its theatrical release.
So if nearly all films lose money theatrically, why do distributors even bother? The answer is that the dark-room theatrical experience is still far and away the best way for a movie to connect with an audience, and the best way to create awareness and demand for DVD, digital, VOD, and television – which is where all films ultimately make their money. Case in point: the average theatrically released film earns 25 times the DVD revenue of the average straight-to-video film.
Read the full piece HERE.
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