GUEST EDITORIAL: How Movie Sets Make Money Outside Of Ticket Sales

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How Movie Sets Make Money Outside Of Ticket Sales

by Kevin Gardner

From independent films to big budget action movies, movie production is an incredibly expensive venture. This is especially true when you think of large Hollywood films, but most film production can still cost a pretty penny regardless of what kind of company produces it. While most big budget films can usually rely on a projection of the value that they’ll gain from attendants to the movies, those projections are only a guess and can never be completely called in correctly until after the movie has been produced and released. For budgetary reasons, most film sets want to ensure that there will be a return on the initial investment. This is why it’s so important for movie sets to find other ways to make money so they can cover the initial cost of the price of producing the film. Here are just a few ways outside of movie ticket sales that movies make money. 

Streaming Services

With so many people watching movies from home, even movies with huge production costs are being released onto streaming platforms. This is an excellent choice for movie producers who are looking to make more cash than the initial revenue from movie ticket sales. While brand new movies generally come with a price tag of its own, many of the streaming services pay movie producers to add their movies to the streaming subscription services. This is great for movie-goers as well, as movies are not being watched everywhere. Sometimes the streaming services allow you to download movies, and with a rugged laptop, can be watched during a camping trip. This gives movie enthusiasts the ability to watch movies anywhere, and is a great choice for both movie producers and watchers for additional revenue. 

Merchandising 

One of the most popular ways that movies make additional revenue is through merchandising. This can come in many different ways and depending on the popularity of the franchise, can be one of the most cost-effective ways to make money for a movie. Everything from toys, to t-shirts, and video games, merchandising takes on a life of its own. Most of these items can be bought online first with in store pickup via bopis. The popularity presented by the initial movie ticket sales can add to the ability of this form of extra cash flow to make money, but in most cases, this is one of the higher revenue streams for a company that has made a movie depending on the popularity because merchandise sales tend to last for long periods of time after the movie’s initial release.

Product Placement and Advertising 

Another popular way for movie sets to make money is through adding products to their movie sets as a way of advertising for other businesses. This is an excellent way to make money as a movie producer because it can both add life to the movie itself through the use of product placement. Product placement can come in many different forms, from the reference of a popular social media site to a character holding a branded coffee cup. The biggest issue when it comes to product placement is the reassurance that is not overdone. Overdone product placement can easily become too distracting in a movie set, so in most cases, it should be discussed between the business and the movie producer about what ways in which the product will show up on the screen. For some companies, their contracts outline a specific amount of screen time or how much of the screen that the product takes place in. This can be tricky for directors, but can be easily discussed with the company so as not to overtake the film. 

Crowdfunding 

Most independent filmmakers do not have the cash flow or funds even close to competing with huge triple- A companies. This can be incredibly difficult to get together enough cash to make the money for your movie in the first place. Instead of relying on the other sources mentioned in this article and so that they can get their movie off the ground, many independent filmmakers rely on crowdfunding to make their movies happen. This can be an incredible way for people to make the money necessary to start production and often is one of the most profitable ways that small indie films can make the budget they want.