MOVIES

BOX-OFFICE INCOME

Movie houses usually split box-office receipts with a movie's distributors. Exhibitors, as the movie houses are called, take a higher percentage the longer the run

First week 50%-50% split

Second week exhibitor 60% - distributor 40%

Third week exhibitor 70% - distributor 30%

Fourth week exhibitor 80% - distributor 20%

Fifth week exhibitor 90% - distributor 10%

The movie house or exhibitor's percentage is called 'the nut'. Sometimes movie houses will agree to give up their nut entirely for a blockbuster and rely on the concession stand to make money. Movie houses typically markup 60% on confections.

Distributors have a lot of expenses to cover.

Typically 6 million for advertising and marketing a movie

Making multiple prints of a movie at $1200.00 a piece.

Distributors are also responsible for after markets like International distribution and video and television distribution.

The Lesson of Intolerance by D.W. Griffith

  1. $2 million dollars spent to produce the movie
  2. D.W Griffith was broke
  3. The dilution of creativity

ARTISTIC VERSUS BUDGET ISSUES

Clint Eastwood has no problem finding financial backing because of his low-cost films.

Francis Coppola refuses to compromise on artistic detail. For the movie Apocalpse Now, Coppola spent a small fortune building his own army when the Pentagon refused to provide troops and equipment. The government was worried about his slant on the Vietnam War.

FINANCING SOURCES

The average movie costs $24 million dollars

1991 James Cameron's movie Terminator 2 cost $110 million

Who Framed Roger Rabbit cost more than $60 million

The average Canadian film costs less than $1 million

Who finances movies?

  1. Major studios with profits from previous movies
  2. Investor Groups in Canada receive tax breaks
  3. Banks will meet front-end expenses
  4. Government funding such as the National Film Board

1195 Telefilm's budget was $152 million with $122 million coming directly from taxpayers

  1. Canadian film-makers have different government initiatives available:
  2. $40 million from Telefilm for developing, producing and marketing Canadian films
  3. $15 million for television and cable distribution
  4. Special Tax Credits
  5. A Special Foreign Investment Policy for International distribution
  6. $1.3 million for training
  7. Special provincial initiatives for direct funding

MORALITY, CHANGING MORES AND CURRENT MOVIE CODE

1907 Chicago passed a law restricting objectionable material

1922 worried moviemakers created the Motion Picture Producers and Distributors of America to clean up movies.

When the Depression struck, many people linked the nation's failure with "moral bankruptcy".

1930 adopted the Motion Picture Production Code

CURRENT MOVIE CODE

1968 several industry organizations established a new rating system by the Classification and Rating Administration Board.

F: Suitable for family viewing, including young children

G: Suitable for general audiences and all ages

PG: Parental Guidance suggested because some content may be considered unsuitable for preteens

PG-13: Parental guidance especially suggested for children younger than 13 because of partial nudity, swearing or violence

AA: Anyone under 18 must be accompanied by an adult (over 18)

R: Restricted - not open to anyone under 18

NC-17: No children under the age of 17 should be admitted

THE FUTURE OF FUNDING IN CANADA

American lobby groups are putting pressure on the Canadian government to stop subsidizing Canadian film projects.

Feel the assistance is in violation of the North American Free Trade Agreement.

Example of co-funding Due South. Produced by a Canadian production company, CTV and CBS.

1990s seen the success of Jim Carrey and James Cameron

Funding for Canadian films will likely decrease.

National Film Board's stance is it cannot compete with Hollywood, but that we should not abandon making Canadian films.

COMMERCIAL VERSUS ARTISTIC PRIORITIES

Star Wars posters, bed sheets have pulled in $2 billion dollars 7 years after the movies release.

Batman tie-ins rang up $500 million dollars in 1989

Music also a popular tie-in

Product placement such as Tom Cruise downing a Pepsi in Top Gun.

E.T. the alien coaxed out of hiding with Reese's Pieces. (M & Ms were not used by Mars Executives for fear of associating their candy with something as ugly as an alien).

Miller Beer paid for 21 references to its beer in Bull Durham.

TOP -EARNING CANADIAN MOVIES SEE CHART PAGE 145.

The Canadian Film Industry, like other media in Canada, will probably

Continue to be a mixture of private and public funding.