Today, the disribution models
for the release of ALL entertainment are in a constant state of flux.
The below information is basic
providing little insight to the future distribution which includes smartphones, wireless streaming to these phones as well
as theaters etc.
The audience for PG-13 rated SCORE!, which encompasses the 12 to 24 year-old demographic, accounts for 65% of all movie
tickets sold, a number which soars to 78% during the summer months. In short, they “consume” movies. And, IFR
is going to give them a great movie to consume in big numbers not only the first time through theater release, but also through
repeat DVD/VIDEO view.
Today, teenagers obtain a bulk of their information from the Internet. This means that aggressive, online
marketing will virally sell SCORE! in this thriving marketplace.
Moreover, an appealing web site, filled with information and attractive offerings, will provide continuity
and "stickiness" up to and through the theater release. Complimented with blogging, the online initiatives will prove
to be Solid Gold Medal and Record winners in themselves.
A brief sampling of budget vs. domestic, video, and international gross (where applicable) for four movies aimed at this
same demographic with comparable subject matter follows. These figures do not include additional ancillary sales revenue derived
from outlets such as television, airlines, ships, etc.
BELOW DATA IS DATED --
USED FOR ILLUSTRATIVE PURPOSES
Budget: $5 million
US Gross: $30 million*
UK Gross: $25 million*
Budget: $12 million
US Gross: $30 million
Video Gross: $45 million
Budget: $20 million
US Gross: $60 million
Video Gross: $50 million*
Budget: $10 million
US Gross: $70 million
Video Gross: $60 million
All figures courtesy of IMDB, the Internet
Movie Data Base
*Indicates still in circulation and climbing.
Estimated video figures include DVD and video sales and rentals.
HOME DVD / VIDEO MARKET
While SCORE! is destined for theatrical distribution, as illustrated in the above numbers, the home-video after-market
is a very lucrative revenue source.
The home video market was $20.3 billion in 2002, a rise of 11.5% from 2001. Purchases of DVDs grew 52.6% to $8.7 billion
and growth in rentals was 106% to $2.9 billion. Today, the DVD "revolution" is about complete with DVD players now less than
magical $79 consumer price point DVD recorder prices tumbling; and, DVD/CD drives present on most all home computers.
In comparison, $3.7 billion was spent buying videocassettes, while $5.3 billion was spent for renting. In 2002, DVD sales/rental
eclipsed VHS for the first time marking a turning point in consumer behavior.
The DVD player represents the fastest adoption of any consumer electronics product including the compact disc.
DVD penetration is at nearly 56 million households, 15 million more than a year ago, and in 2002, an average of 5.5 DVDs were
purchased per household.
According to the MPAA, the 633.2 million units purchased and 69.2 rental units in circulation are an 84% increase over
2001. Taking a lesson from the video market, the average price for a DVD is falling as the number of titles increases, and
as the industry attempts to twart unauthorized copying. Worldwide, consumers are expected to spend $30 billion on DVD purchase/rental
in '03. This dramatic increase results for several factors such as the explosion of "home-theaters" which incorporate surround-sound
technologies and now large, life-like LCD and Plasma flat-panel screens. In '04, these trends have accelerated.
Increasingly, the "digital revolution" is bring together what were once desparate technologies. Though the roll-out
formula for a film scheduled for theatrical release has not yet bet changed, options are coming available that will have further
impacts on way feature films generate revenue...such as a pay-for-view premiere with a straight to digital on-demand replay...
all supported by on-line and and on-air promotion.