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The Flow Of Money Through The Film Industry

By Dustin Rowles | Miscellaneous | December 3, 2010 |

By Dustin Rowles | Miscellaneous | December 3, 2010 |


This is kind of interesting, in a Film 101 sort of way: A graph explaining where all the Hollywood money goes. $65 billion a year in revenue actually seemed kind of small (and a fraction of the pharmaceutical industry’s profits). You can also see how much less a distributor makes renting out a movie (25 percent of, say, $4) than selling a DVD (75 percent of $20), which both makes sense in why the studios are trying to limit the growth of Netflix (and Redbox) and why Netflix can make so much profit from an $8 monthly subscription that allows viewers unlimited streaming (I’m not sure how much it cost to license content — recent reports suggest that Netflix is willing to pay $100,000 per episode of a hit show — but, it does cost around $.09 per movie to stream it).

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Dustin is the founder and co-owner of Pajiba. You may email him here, follow him on Twitter, or listen to his weekly TV podcast, Podjiba.



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