Know all about production houses – Work and money-making tricks

Know all about production houses – Work and money-making tricks

The job of film production companies is to make content around videos, films, or short films and releasing it in the market. Film production companies are different from cinema studious because they produce content for other companies like social media, promotions, television, etc., whereas film studious make content for the general public.

There are many things that a movie production company in London would do, for example, developing content, hiring staff and crew, scripting, casting of artists, etc. Still, the question arises here that how does the movie production

company make money? The answer to your question owns the shares and the shared partnership can vary from 1% to 70%.

Given below are the lists of things from which the production houses make money 1. Ticket Revenue The majority of the earnings done by selling the movie tickets goes to the theatre owners, and the remaining balance amount is distributed among production houses and distributors. The amount of shared profit depends upon the film's contract. Let’s suppose the film didn't work very well at the box office, then production houses have to take a minimum cut of the profit giving theatres a significant share.

With the uprising of OTT platforms, it is even more challenging to collect ticket revenue. Over the top (OTT) platforms allow the general public to stream the content anytime and anywhere.

2. International Sales In this 21st century, it has become a necessity to release the movie on internal platforms. The foreign box office is more profitable than the domestic box office because foreign currencies are expensive and profitable. As we all love to watch superhero movies, and these movies don't require any translations, it is easy for production houses to release the film internationally.

3. Star Cast The star cast of the movie also affects the earning of the film.

Suppose, if a mega start is playing the lead role in the movie, then your movie will indeed perform better at the box office when in comparison to other movies of the same categories. It

doesn't matter whether the content is good or bad. Higher the TRP (Television Rating Point) of the leading star, the more the profit.

4. Television, VODs, and Streaming Movies have to come out of the theatres at some point, but they can stay forever in the TVs, CDs, and OTT platforms. Usually, by selling the movies to TVs and streaming, platforms production houses earn tons of money. They are the primary source of income for the production company because they aren't responsible for paying ads.

5. Clients Being extraordinary in your job is not enough to be a successful movie production company. If you have a suitable script and star cast, the first thing you have to do is hunt for the right client.

Pitch the client and then close the deal. It is essential that the

client must have the interest to work with you otherwise. For that matter, a personal relationship with your clients is also necessary.

6. Extra Funds The job of a production house is to observe and take active participation in the movie-making process carefully. Generally, the production houses are not responsible for paying for advertisements and promotions; this is the job of a distributor.

So, sometimes, the excess amount can be a source of income for the movie production company. Therefore, it is pretty tricky for a company to play both roles; production house and distributor.

Conclusion: It is not hidden from everyone that movie houses only earn when they have made the right choices in choosing the clients, cast and crew, funding, and more. Otherwise, impromptu decisions have always witnessed significant failures.