In Hollywood, the DVD industry is becoming more and more important, and it is not an exaggeration to say that DVD has saved some film companies.

Most Hollywood movies cannot recover costs from the box office, and profit-making people are even more likely to talk about failures like "Catwoman", as well as dolls, figures and peripheral licensing, can bring income, but this is a patent for adapted movies or super-large productions, and it cannot appear in films with investments of only a few million dollars or even hundreds of thousands of dollars.

Video tapes, DVDs and TV broadcasts have become the ways for these films to make profits, and they are also the profit points for most Hollywood films.

DVD, a medium that is cheaper and easier to circulate than videotape production, has, to some extent, even saved some major Hollywood studios.

The most typical one is Sony Columbia Pictures. After "Spider-Man" was offline from theaters, Sony Entertainment immediately released the DVD of the film. The regular version was priced at $19, and the luxury suit was as high as $39. It sold more than 5 million sets in the first week alone, earning more than $120 million. The DVD sales of the year it was released were as high as $215.3 million!

This is only the sales volume in North America.

In today's era, movies with high box office have almost all brought extremely high DVD sales.

For example, last year's popular cartoon "Finding Nemo", the DVD disc sold more than $150 million in its first week of its launch, far exceeding the first weekend box office in North America.

Murphy remembers it very clearly that these years are the best era of DVD, and it will not take long. With the rapid development of online video on demand and download, DVD will decline rapidly.

"Deadpool" undoubtedly encountered a good era.

At the end of July, 20th Century Fox officially launched the DVD of "Deadpool" into the North American market, using large institutions such as Walmart, target, and Amazon as the main sales carrier, and also launched sales on e-commerce such as eBay and Amazon.

As for sales, it can only be described as hot.

Although the DVD discs are not as good as Spider-Man and Finding Nemo due to the Deadpool scale, the sales figures in a week are also gratifying, easily breaking the $100 million mark, as high as $112 million.

Compared with the box office figures that require layer-to-layer sharing, DVDs actually bring higher profits.

Twentieth Century Fox can get the most profits. A DVD studio sells it to a seller for wholesale prices. The videos are from $10 to $20, Deadpool is at $15, and the luxury suit is at $25, while DVD suppression costs are at $2, often only one percent of the price.

Almost all of this money goes back to the studio, but generally the studio will provide the underwriter with a promotional fund of about 5% or no more than 10%.

This is just a short-term DVD and long-term rental. Hollywood has an extremely mature operating method in this regard.

Compared with simple and clear sales, the sharing of DVD rental is more complicated.

First, the renter will give the studio a reserve price, that is, no matter whether the movie is rented or not, the studio can get a sum of money from the renter. The box office price of each DVD video is different, about 3-10 US dollars, and the higher the box office, the higher the price.

There are several different ways to rent. Normal rental fees are the main source, and there are membership fees. In addition, if the rental disc is not returned on time, the leased disc will be automatically sold, that is, the money of the rental disc users will be deducted according to the sales price. In the current general way, the studio will draw 0.5-2 US dollars from each rental income. The price is determined according to the box office figures of this film. If it is a sales, there is also a ratio of each disc to be drawn, which is higher, about 5-10 US dollars.

The rental fee is not always included. According to the contract, it has an effective time, which is about 25-80 weeks. The higher the box office, the longer the cycle.

When it expires, the leaser must destroy a certain percentage of the DVDs and return the remaining one to the studio or buy it for one dollar each.

In addition, all bad debts, bad credit, publicity and mailing fees will be deducted from the income sharing.

If a single movie is a big-selling film like "Deadpool", the studio can earn $5-8 million from a single leaser. This is only the rental part, and the sales part is more than this. In other words, a movie with a big box office hit, Hollywood can earn tens of millions of dollars in revenue from DVD rentals, and this income is almost all net profit.

At the same time, Twentieth Century Fox also negotiated the first round of TV broadcast rights for "Deadpool", selling the first round of TV broadcast rights for the film for a high price of $25 million.

All of these incomes are closely related to Murphy, and his director's contract stipulates that dividends can be distributed from them.

After agreeing on the TV copyright fee, Twentieth Century Fox first paid Murphy the last million of his director's base pay.

Then, Murphy's lawyer Robert and accountant David began to urge Twentieth Century Fox to fulfill the share clauses in the contract between the two parties on time.

Murphy's director contract has a step-by-step incentive clause.

The agreement takes the production cost of the film of $60 million as the basic point. If Deadpool can reach the cost line of $60 million in the future, he, as a director, can receive one percent of the North American box office as a reward. Once the North American box office rises to $100 million, this proportion will increase to one-50 million, $150 million to two percent, $200 million to two percent, $200 million to two percent, and $250 million to three percent.

There is also a note later. Once the film's North American box office exceeds the $300 million mark, director Murphy will receive 5% of the total North American box office as a reward.

At the beginning, no one would have imagined that Deadpool could exceed the $300 million mark in North America.

Twentieth Century Fox signed such an agreement not to bet with Murphy, but to inspire the creative team with director as the core to go all out. Although Hollywood films have many sources of revenue channels, box office is the basis of all this. Just like DVD sales and leasing, there is no high box office downs, and it is impossible to raise the price at all.

Moreover, the box office of "Deadpool" in North America was $300 million and $250 million, which brought a very different income to the 20th Century Fox in all aspects.

Murphy can take five percent of the North American box office, which is $15 million, plus $3 million in basic film pay, and his directorial income in "Deadpool" is as high as $18 million.

This is a very high number. If there is a single-round income figure, only front-line directors can get it.

On the other hand, he can also get two percent of the dividends from various North American copyrights of Deadpool, which are long-term income.

After 20th Century Fox received the North American box office share of "Deadpool", Murphy not only asked the other party to pay personal compensation on time, but also required that the return on Stanton Studio's investment be paid in the two months after the film was removed as stipulated in the contract.

The production cost of "Deadpool" is $60 million, and Stanton Studio invested $15 million of it, which means that it can get a quarter of the profit after removing various costs of the film.

Twentieth Century Fox also wants to continue to cooperate with Murphy, and with Cara Fais in Stanton Studio, there has not encountered much obstacles. Hollywood companies will not blatantly do too much to deal with investors in the industry like foreign funds.

What's more, now everyone can see that Murphy is a huge potential stock, and continuing to cooperate may bring more profits.

After deducting various taxes and fees, Twentieth Century Fox received a North American box office share of $150 million from theaters.

As we all know, this part of the money is not profit.

Twentieth Century Fox first took away its own distribution commission, more than 10% of the North American box office, more than 30.7 million US dollars, and then the promotional and marketing expenses paid in advance, up to nearly 40 million US dollars, and then up to 15 million US dollars in copy production costs. Now digital screening technology has not been promoted, and copy production costs are still high.

In this way, Twentieth Century Fox will take away $85 million first.

The box office share of Murphy and other creators also need to be calculated. At that time, almost all the creators signed a reward agreement with a bonus of basic pay. Although others are not as high as Murphy's share share, they have exceeded tens of millions of dollars together.

In addition, the warehousing, travel, insurance, legal and accounting expenses incurred during the screening process must also be included in the cost. The film is a trade union filing project and requires a certain proportion of the expenses to the trade union. Although it is not too much, it cannot be arrears, otherwise it will be a big trouble.

These scattered together amount to nearly five million dollars.

The total cost of a film is quite expensive, far from being as simple as the production cost. Apart from the 85 million US dollars of 20th Century Fox, the others are also as much as 30 million US dollars.

The remaining $35 million will be shared by Stanton Studio and Twentieth Century Fox according to the investment ratio.

The distribution company has an absolute advantage. Even for a super-selling film like "Deadpool", Stanton Studio cannot recover the investment cost through the North American box office alone, but the North American box office is only part of the film's many sources of revenue.

Today, Deadpool has a global box office of nearly $560 million and an overseas box office of more than $250 million.

Although the share share ratios that 20th Century Fox can get are also different due to different share policies and taxes in different countries and regions, in general, the issuing company can get about a quarter of the overseas box office, and Stanton Studio can also participate in the share of this revenue.

The box office is only part of the film's revenue, and the surrounding revenue. In just North America, Deadpool's DVD and TV copyrights sold terrifying figures. Apart from the fees and other costs paid to Marvel, Stanton Studio can also take a quarter of it.
Chapter completed!