April 2019 was the most exciting time
period in the history of films and
filmmaking Avengers end game ending the
era and the beginning of the last season
of Game of Thrones globally ours are
glued to screens
generally the movie business is a very
lucrative venture for example avatar is
the most expensive movie ever made its
budget stretches up to almost 500
million dollars with 150 million dollars
spent on marketing and promotion alone
the biggest expenses were new filmmaking
techniques and graphics and as well as
the creation of the new language that
involved hiring a linguist and its beta
of the movie topping 2.9 billion dollars
worldwide box office and now Avengers
endgame is on the path breaking all the
records including avatars while there
are a lot of money to be made in the
film industry the economics of
moviemaking are far from simple
generally there are three main stages
until the movie is screened to you in
cinemas it begins with a production
studio to the distributor and to a movie
theater the studio's negotiate a
contract of the distributors most of the
time large studios like Disney Universal
and Paramount other distributors and
selves and as the distributor's
negotiate contracts with the movie
theaters for a big blockbuster movie the
theater gets only 10% of the ticket
price in the first week and 90% going to
the studio so this is why you hear
people saying an opening week of the
high budget blockbusters whether it
meant expectations or it flopped the
first week is the most profitable time
period of the new movies but this profit
sharing relationship flattens as time
progresses 10% almost $1 per ticket
might sound not much profitable for
theaters but theatres still have great
incentive the back seats because of the
exorbitant margins they charge on
popcorn food and beverages generally it
mostly depends on the contract on the
movie by movie basis but usually after
two weeks the theater gets 80 percent
and as the week's go on the percentage
for the theater grows and it gets more
profitable this is also why theaters may
choose to show movies for 10 plus weeks
because every ticket is pure profit for
them at that point
studios and distributors generally make
more from the mastic revenue than from
overseas sales because in the domestic
market they get a larger percentage
still overseas tickets are incredible
important especially today this may be
partly why you are seeing more sci-fi
action and fantasy films and watch
superhero movies are such a phenomenon
they are easy to understand whether you
are in Egypt or in China it's much
harder for an indie comedy to translate
apart from movie theater Studios make a
lot of money from the merchandising it
all started with Star Wars since the
first George Lucas humppa movie
premiered back in 1977 the franchise has
made tens of billions of dollar in
revenue from toy licensing alone not to
mention licensing cost from certain
party companies in 2015
Star Wars The Force awakens brought in
700 million dollars in retail sales
Disney's Toy Story franchise has brought
in billions of dollars in retail sales
as well this strategy obviously doesn't
work for every phone but for big-budget
films that appeal to kids and comic-con
junkies alike merchandising is a cash
cow the biggest problem and common enemy
of the movie theaters and studios is
online piracy and leaks there are a lot
of developing countries where online
piracy is widespread because of
inaccessibility and in some of them
piracy and scamming is somehow embedded
into your personal kind of culture and
it's a norm and yes I'm talking about
you Rajesh the guy from IRS with thick
Indian accent and kymaro from Nigeria
who is hitting my emails and wants to
send me a check for 500 million dollars
for no reason
I mean it's legit well those developing
countries have movie theaters as well
where big blockbusters like Avengers and
Godzilla movie screen but how do HD
movies in developing countries and even
in developed countries are prevented
from getting leaked to the Internet even
though the possibility is very high when
tens of thousands of cinema owners and
workers around the world having copies
of new movies now that all movies are
distributed as digital files they are
delivered to theaters two ways the first
method is to send a hard disk drive to
the theater with the movie and all of
the trailers that studio wants to have
shown before the movie each theater gets
one copy of the movie and will copy it
from the hard drive to the servers in
each of the thorium
where the movie will be shown the other
distribution method that is growing in
popularity is to download the movie from
communications satellite or to get it
through a high-speed internet connection
to do this the theater needs a satellite
receptor dish and a library server where
the movie is received and stored once on
the library server the movie file is
sent to the playback server in the
auditorium where the movie will be shown
with either distribution method the
movie is encrypted with a strong
encryption system a digital key is sent
to the theater for each server that will
run that movie allowing the movie to be
shown in that particular of the torreón
each key will unlock that one movie on
that one
playback server and only for a specific
time period during which the movie can
be played if the movies run to be
extended then a new security key needs
to be sent with this encryption system a
single version of a movie can be
distributed to thousands of cinema
auditoriums but the presentation of that
movie is authorized and controlled by
the distributing studio right down to
the individual of the tour ium and the
hour of a particular day so in a
nutshell this makes impossible to pirate
new movies in HD or blu-ray formats to
the internet movie leaks weren't a
really problem in the old days if you
wanted to steal a film before the early
two-thousands you had to actually run
away with a disc tape or a giant stack
of reels since most movies are now
stored and distributed digitally its
worryingly easy for someone to press the
wrong button and instantly spread a film
all over the Internet last year Sony
didn't oopsey uploading an entire movie
to YouTube instead of the trailer I
really wonder how's that even
logistically possible who uploaded this
trailer a marketing team social media
crew why did any of these people have
access to the full cut of a movie that
will not make its theatrical premiere in
the United States for another 2 months
was the full cut of the movie just being
kept in the same folder as the trailer
if so why the full movie being kept in
the same folder with the trailer did no
one think at any point in the process
hmm this trailer up loads sure taking a
long time
our other sony picture movies just
hanging around in the company intranet
can someone please upload the new
Quentin Tarantino movie to YouTube next
I really can't wait well that's pretty
much it
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