I just wanted to know that how do animation studios make money?
I'm not talking about animation for advertisement. I'm talking about studios that make feature-length films.
Like after they have made an animated movie, do they sell it? Or do they tie-up with distributors and then share profit from box office?
I've read that these studios get 40% from the box office and the rest goes to distributors.
Now let's say that my animation studio made a movie for 80M dollars. And then it made 500M dollars at box office. If we take 40% of this 500M my studio is supposed to get 200M dollars. Now let's deduct the cost of making the movie I.e, 80M dollars. So ultimately I'm left with 120M dollars at my disposal.
My question is who's pocket does this 120M dollars go to? And if my understanding of the above-said working is wrong, do correct me in the comments.
Thanks. Your comments are appreciated :)
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Animation producers make movies and money like everyone else. There is a script, a crew of animators, a production period, and then marketing and a distribution release to theaters or streamers. Only difference is the length of time usually required during the production phase
Thanks Erik :)
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I don't know for sure. But I believe that what the animation studio gets paid is pretty much all the animation studio will see. So, if you have an animation studio, and your studio gets hired to make a movie for 20 million dollars, that is all you will ever see. I think the box office numbers are very misleading because that is not profit, that is ticket sales. If you make a movie on your own, then you have to find a distributor to get the film into the market. And different distributors work in different markets. etc.
Thanks Hagop :)
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Are you talking about big production companies like Disney or smaller boutique type studios owned independently? If the project concept originated from the boutique studio itself then it reaps all the profits. If the big production company subcontracts a boutique studio to create it's property, then the production studio is generally payed for the time and labor. Contractual agreement s may also be individually tailored in this situation depending upon the studio's relationship with the big production company.
Thanks Hanna :)