Movie Revenue: Where Does the Money Come From?

Continuum Pictures treats the film industry as the lucrative business it is. The projects we produce will provide a source of residual income so we may continue to do what we love most– making movies.  Most film companies become complacent and settle into the market channels they are most familiar and comfortable with.  We will challenge every project and consider all of the possible ways we can get our products to market and maximize the revenue opportunities. 
Here is how the most commonly used market channels work:
Domestic Theatrical Release and Distribution: By licensing the production to established theater distributors, the film will be released to theaters nationwide. In addition to being the primary market for motion pictures, theatrical releases also provide consumer awareness for more lucrative revenue channels: home video, pay per view, and television broadcast. 
Continuum Pictures has the option of being its own distributor by directly contacting film laboratories, theaters, foreign distribution partners, and marketing agents. This empowers us to have more control over the timely theatrical releases and a larger share of the revenue.
Home Video: Taking the form of DVD and Blue Ray, the market for home video is two to three times that of a theatrical exhibition. Building upon the theatrical popularity of a picture, home video provides an excellent opportunity for long-term receipts. This includes direct market sales to the consumer as well as short-term rental opportunities like Netflix, Blockbuster, and Red Box.

Pay-Per-View: Cable and satellite companies such as Comcast, Time Warner, and Direct TV provide their customers with pay-per-view and video-on-demand options for newly released films.  The pay per view phase typically begins six weeks after home video release dates.
Broadcast Rights: Cable and Network television license the film for a period of time for both exclusive and non-exclusive periods to broadcast the film.  Examples of such network licensing can be seen on channels such as HBO, Showtime, FX and NBC.
Foreign Rights:  Theatrical releases to foreign markets often out-produce the domestic US gross receipts for motion pictures.  These deals take the form of sublicense agreements or outright foreign sales of a feature to a given market. This form of revenue includes foreign video, pay-per-view, and broadcast.
New Media: In the ongoing growth of the Internet, additional distribution and means of revenue now exist, including sites such as Hulu, Netflix Instant, iTunes, YouTube, and Facebook.  We will utilize the relationships we have with these new media outlets to expand distribution through the new age of digital rights.
Other Rights: Revenue can also be gained through other means such as airline exhibitions and product merchandising.
Once a quality film product has been completed, it can realize revenue from multiple market channels and continue to see residual revenue for decades to come.

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