How HV sales used to turn big box office hits into massive box office GIANTS

[jimisawesome]

That is what I partly meant, to not belief / counting on the merchandise will get 'booked' as a studio / movie's explecit revenue fully, maybe only precentage or... especially if the company is Disney

 

I was speaking about Disney's internal bookkeeping too, how the accounting people... internally split up the ~ interactive help they give each other, not only about the final details for the overall owner,

 

 

 

It really does not matter all the licensing department at the end of the day report to the same person at Disney.  Sure there is going to be a spreadsheet somewhere that you can figure out Frozen made X, Marvel made Z, ESPN made Y but its a curiosity not something anyone needs to know unless they are going to spin off or sell one of these larger divisions. 

 

 

Let's say said toys get partly sold at Disneyland.

To what a price will they get the toys? Probably not the same as Marvel Toys would sell them e.g. to amazon.

Will e.g. get Marvel Comics ... something (internal) out of the sales? Or Marvel Toys for the lessened prize? Or the Studio for the merchandise created to look like the movie ... things and the events they did there?

How do they book such costs and income, for which sub-company.

 

If its a product that is sold else where as well as Disneyland then Disneyland would have bought that from the manufacture.  So for the accounting it would go like this.

 

Manufacture pays Disney Licensing which shows up under that line item as it would if it was sold at Walmart.

Disneyparks would see the cost of that toy under their cost and the revenue under their revenue.

It does not matter if Disney has a contract that says Disney gets item X even for Free the above is how it would be accounted.

 

Think of it kind of like this a Chicago Branch office might get its paper from Staples while the NY main office gets its paper from OfficeMax.  Each office has a person that orders the supplies without contacting the other office.  But at the end of the day its still 1 company and all the paper expenses are reported as 1 number. 

 

 

As for anyone that would have a piece of the merch it would be up to their representatives and Disney on how they are going to account for it and then how they will audit it.  I am not sure how Jack did it.  I do know that even accounting for gross points is a major negotiable point.  And again that is gross points not even net because most gross deals are not from dollar 1 but require a movie to hit certain milestones before you get your points. 

[terrestrial]

It really does not matter all the licensing department at the end of the day report to the same person at Disney.  Sure there is going to be a spreadsheet somewhere that you can figure out Frozen made X, Marvel made Z, ESPN made Y but its a curiosity not something anyone needs to know unless they are going to spin off or sell one of these larger divisions. 

 

 

If its a product that is sold else where as well as Disneyland then Disneyland would have bought that from the manufacture.  So for the accounting it would go like this.

 

Manufacture pays Disney Licensing which shows up under that line item as it would if it was sold at Walmart.

Disneyparks would see the cost of that toy under their cost and the revenue under their revenue.

It does not matter if Disney has a contract that says Disney gets item X even for Free the above is how it would be accounted.

 

Think of it kind of like this a Chicago Branch office might get its paper from Staples while the NY main office gets its paper from OfficeMax.  Each office has a person that orders the supplies without contacting the other office.  But at the end of the day its still 1 company and all the paper expenses are reported as 1 number. 

 

 

As for anyone that would have a piece of the merch it would be up to their representatives and Disney on how they are going to account for it and then how they will audit it.  I am not sure how Jack did it.  I do know that even accounting for gross points is a major negotiable point.  And again that is gross points not even net because most gross deals are not from dollar 1 but require a movie to hit certain milestones before you get your points. 

 

I knew all the points

 

I know especially how it all ends with Disney as the overall owner. I still would like to know how they internally judge it.

 

Disneyland.. I think you either didn't understan my self-trained English or you missed a/some point(s) (the same about my earlier posts).

 

Some fans-for-movie xy seem to read certain articles and based on that to expect the details out of that movie (e.g. merchandise details) to get fully accounted to the movie / the movies studio. That is wrong.

 

IMHO it helps people who had an impression out of such articles.... (especially) for/since a long time to see with some examples that might help them to understand - not only about internal accounting - and as such leading to recognise/not dismiss/get angry about possible other models on how to list revenues.... and the possible whys to do so.

 

My 'questions' where mostly not meant as a seeking to answers (only if someone who does actually / really know them per professional experience), but more to give people a hint about why it might be not so simple to find the 'real' revenues per (their) movie

 

 

You seem to think it doesn't matter, even to dismiss the interest....

I see it in another way. It does matter to me, not for reasons of getting shares, but for the reason of... BO theory. And some other reasons too.

Sounds familiar?

[terrestrial]

[Walt Disney]

Here's an interesting article on the current status of the industry, both broadly and studio-specific:

http://www.filmcomment.com/article/a-specter-is-haunting-Hollywood

 

This article was excellent. I can't believe I almost missed it. It was full of lots of information and excellent analysis.

 

It's interesting to see how Hollywood uses home video sales from the previous year to set budgets for the coming year. Now I see why Disney budgets are so high. They really only need to not lose money every year. However, with the decline in home video sales, that may not be the case for long (which I believe is why Tele put the article here).

 

The author seems to feel Disney is in the best shape. I think if they can keep the budgets somewhat reasonable, they can have a solid profit margin. However, Disney is also the author's worst nightmare. Disney closed down Miramax and sold their Miramax library. This means that Disney doesn't have an indie label or invest in those types of art house films that the author is worried about studios ditching if profit margins keep tumbling. But, this is a serious concern for the other studios.

 

It's also interesting how little profit studios make on movies. The budgets are so over-inflated that the profit margins aren't great. Warner Bros. is viewed as this huge success, but their profit margins are so small that it's really just an illusion. The same is true of Fox, who a lot of people around here tried to declare the winner last year because they had the highest gross of any studio, but this article makes it clear that Fox doesn't benefit from a big profit margin at all; it's their TV production that masks the studio's shortcomings.

 

It seems like Disney, Lionsgate, and Universal are doing well. Meanwhile, the other studios may have monster blockbusters (which is great for us because we love watching the Box Office), but those blockbusters aren't necessarily bringing in a lot of profits. So much for how OS is saving movie studios. It may help them make profits, but those profits aren't as great as we might think they are.

[Olive]

United States Combined DVD and Blu-ray Sales Chart for Week Ending March 8, 2015

← Previous Chart

Chart Index

 

Rank	Title	Units this Week	Total Units	Spending this Week	Total Spending	Weeks
1	The Hunger Games: Mockingjay - Part 1	2,107,156	2,107,156	$37,892,925	$37,892,925	3	Buy
2	Big Hero 6	445,909	3,354,775	$8,080,788	$59,252,276	5	Buy
3	Tinker Bell and the Legend of The Neverbeast	388,846	388,846	$8,064,026	$8,064,026	1	Buy
4	Outlander: Season 1 Vol. 1	144,780	144,780	$3,875,307	$3,875,307	1	Buy
5	Barbie in Princess Power	79,406	79,406	$1,243,451	$1,243,451	1	Buy
6	Horrible Bosses 2	61,760	276,556	$1,320,901	$4,953,727	4	Buy
7	Foxcatcher	56,832	56,832	$1,091,537	$1,091,537	1	Buy
8	Paw Patrol: Marshall & Chase on the Case	44,918	44,918	$396,177	$396,177	1	Buy
9	Dumb and Dumber To	41,390	569,493	$841,597	$10,676,743	5	Buy
10	Sons of Anarchy: The Final Season	38,335	195,121	$1,379,091	$6,003,831	2	Buy
11	The Interview	38,057	525,245	$437,289	$6,000,548	11	Buy
12	Game of Thrones: The Complete Fourth Season	37,743	672,116	$1,218,621	$21,944,687	3	Buy
13	John Wick	31,656	911,741	$540,449	$16,116,787	5	Buy
14	The Captive	30,456	30,456	$448,883	$448,883	1	Buy
15	The Hunger Games: Catching Fire	29,290	6,507,419	$270,422	$114,184,193	53	Buy
16	Fury	27,304	1,228,976	$447,444	$22,613,970	6	Buy
17	Birdman or (The Unexpected Virtue of Ignorance)	27,297	331,763	$466,694	$5,810,823	5	Buy
18	Frozen	26,389	18,830,898	$552,023	$349,829,166	51	Buy
19	The Book of Life	24,777	795,089	$443,115	$13,941,268	6	Buy
20	St. Vincent	24,610	245,987	$473,952	$4,322,285	3	Buy
21	Dracula Untold	23,567	867,964	$493,578	$16,437,192	5	Buy
22	The Best Exotic Marigold Hotel	23,081	1,388,615	$372,057	$18,924,214	129	Buy
23	Alexander and the Terrible, Horrible, No Good, Very Bad Day	22,589	628,709	$432,625	$11,224,461	4	Buy
24	Downton Abbey: Season 5	21,957	517,507	$632,747	$13,514,458	6	Buy
25	Despicable Me 2	21,757	12,905,835	$221,061	$226,536,851	65	Buy
26	The Hunger Games	20,908	13,383,761	$196,607	$215,537,078	134	Buy
27	Divergent	20,904	3,188,813	$304,383	$54,974,862	31	Buy
28	Lucy	19,708	1,339,827	$385,638	$25,061,213	7	Buy
29	Guardians of the Galaxy	19,700	6,514,878	$418,198	$119,113,919	13	Buy
30	101 Dalmatians	19,596	5,076,740	$448,567	$112,752,291	800	Buy

 

[terrestrial]

A visual presentation of the studios BO, revenue, and profit

 

See also the percentages of profit in relation to the other datas per studio

 

THR Movies ‏@THRmovies 12 hrs12 hours ago

.@THR's annual breakdown of money at the major studios is here: http://thr.cm/0wzRn2 

Edited March 21, 2015 by terrestrial

[Walt Disney]

 

A visual presentation of the studios BO, revenue, and profit

 

See also the percentages of profit in relation to the other datas per studio

 

THR Movies ‏@THRmovies 12 hrs12 hours ago

.@THR's annual breakdown of money at the major studios is here: http://thr.cm/0wzRn2 

 

 

That's a big year in profitability for Disney. It looks like they're rapidly making back the money that they spent to buy Marvel. That's a good thing because then they can work on making back the money that they spent on buying Lucasfilm.

 

The one thing I don't like about the chart is that it doesn't separate the TV production profits from the film profits. So it masks the shortcomings of WB and Fox when it comes to profits from films. Also, this makes Universal look worse than it actually is by comparison.

Edited March 21, 2015 by Walt Disney

[terrestrial]

[terrestrial]

 

BVA: Brits Spent $8.9 Million a Day on Home Video in 2014 26 Mar, 2015 By: Erik Gruenwedel Electronic sellthrough revenue matching U.S. output

Despite an industry push toward digital sales of movies and TV shows, packaged media continues to resonate among average consumers in the United Kingdom.

British consumers in 2014 spent more than £6 million ($8.9 million) a day on packaged media, including DVD and Blu-ray Disc, according to the British Video Association. That’s double the amount spent on music, cinema or pizza.

With about 6,000 titles released annually, the British home entertainment market is the third-largest globally after the United States and Japan, according to IHS.

The BVA said about 50% of British adults — 24 million people — bought a disc last year, matching purchase levels set in 2013. The trade group said 57% of all video sales were impulse purchases, while 55% were for catalog product.

Speaking March 24 at an industry event, BVA chair Robert Price, who is U.K. managing director of 20th Century Fox Home Entertainment, said the data underscores the resilience of packaged media and strength of video entertainment.

“How many other categories reinvent and refresh themselves every single week — and with products that enjoy such high awareness and emotional engagement? How many [industries] can claim an unrivalled halo effect across multiple household brands and product lines, from confectionary and spirits, to clothing?,” Price said.

Meanwhile, David Sidebottom, senior media analyst at Futuresource Consulting, said electronic sellthrough (or Digital HD) of content continues to grow — driven in part by early release dates.

“We are starting to see signs that the recent success of electronic sellthrough in the USA is being replicated in the U.K, with over 30% growth in sales in 2014. This performance was driven by high-profile new services, increased consumer awareness and a number of studio initiatives,” Sidebottom said.

That said, packaged-media purchases represented two- thirds of all video spending in 2014. Total retail sales topped £1.4 billion ($2.1 billion) with DVD and Blu-ray accounting for 89% of spending, followed by Digital HD.

 

http://www.homemediamagazine.com/research/bva-brits-spent-89-million-day-home-video-2014-35528

[terrestrial]

IMHO interesting in general and especially insofar as e.g. users here argue often about ~ population ~ 100% watch TV, use the internet, are meant as 100% in surveys about the internet or other use (done via the internet):

 

Nielsen: Disc Player Use Rivals Social Media Social media may be everywhere, but it hasn’t surpassed DVD As U.S. consumer interaction with media becomes increasingly on-demand, mobile and social, monthly use of DVD and Blu-ray Disc players remains surprisingly strong, according to new Nielsen data.

Consider that on a monthly basis 142 million consumers use either a DVD or Blu-ray player — the same number that access social media on an app on a smartphone. That’s more than people who connect with social media on a computer (133 million) or on the Web (124 million) on a smartphone.

Nielsen didn’t specify how the disc players were used — either for packaged media or streaming media — but their use topped video game consoles (97 million) and multimedia devices (43 million).

The main reason “old school” technology such as a disc player continues to resonate is the television. It remains at the center of the home entertainment universe. Nielsen found that 285 million people watch traditional TV on a monthly basis. That dwarfs the number of people accessing the Internet on a computer (198 million) or listening to the radio (258 million).

“While the average American adult spent nearly a week (149 hours 14 minutes) on average watching traditional television each month in fourth-quarter 2014, other ways to connect with content were desirable as well,” Nielsen wrote in a blog post.

Indeed, 181 million watched time-shifted content, underscoring the value of the DVR, on-demand programming and post-primetime viewership tracking.

The research firm found that U.S. adults spent well over 15 hours each month watching time-shifted content, close to 30 hours using the Internet on a computer, and over 43 hours using an app or the Web on a smartphone. In addition, the average consumer's monthly time spent listening to radio reached 58 hours and 36 minutes.

While Nielsen said the rise in technology and TV-connected devices has given consumers — and programmers, marketers, agencies and advertisers — myriad distribution choices, among those options remains packaged media.

“The current state of the media universe is much like that of the cosmos — continually changing,” the research firm wrote.

 

Nielsen tracks Netflix, Instant prime, .... since December 2014 too, I guess they start to get a more actual picture

[terrestrial]

United States Combined DVD and Blu-ray Sales Chart for Week Ending March 15, 2015

← Previous Chart

Chart Index

Rank	Title	Units this Week	Total Units	Spending this Week	Total Spending	Weeks
1	The Hunger Games: Mockingjay - Part 1	971,695	2,900,826	$16,344,663	$50,468,632	4	Buy
2	Night at the Museum: Secret of the Tomb	760,818	760,818	$12,835,333	$12,835,333	1	Buy
3	Big Hero 6	327,947	3,507,939	$6,138,248	$62,072,429	6	Buy
4	Tinker Bell and the Legend of The Neverbeast	175,036	541,121	$3,693,080	$11,073,807	2	Buy
5	The Sound of Music	65,672	2,392,825	$1,406,881	$55,744,320	1,162	Buy
6	The Legend of Korra: Book Four — Balance	53,140	53,140	$888,473	$888,473	1	Buy
7	Barbie in Princess Power	50,884	128,875	$779,459	$1,990,672	2	Buy
8	Flintstones and the WWE Stone Age Smackdown	44,217	44,217	$733,157	$733,157	1	Buy
9	Paw Patrol: Marshall & Chase on the Case	40,903	85,821	$372,217	$776,030	2	Buy
10	Russell Madness	40,731	40,731	$416,191	$416,191	1	Buy
11	Dumb and Dumber To	39,614	578,434	$771,434	$10,802,346	6	Buy
12	Horrible Bosses 2	39,243	309,410	$815,024	$5,622,783	5	Buy
13	Game of Thrones: The Complete Fourth Season	37,367	661,351	$1,198,876	$21,460,858	4	Buy
14	The Hunger Games: Catching Fire	37,101	6,488,581	$411,088	$113,922,717	54	Buy
15	Divergent	36,935	3,210,001	$424,453	$54,558,548	32	Buy
16	Frozen	35,300	18,797,470	$744,613	$348,883,505	52	Buy
17	John Wick	35,195	878,970	$600,368	$15,324,829	6	Buy
18	Despicable Me 2	34,319	12,899,070	$371,285	$226,467,768	66	Buy
19	The Interview	33,971	527,533	$385,472	$5,970,231	12	Buy
20	The Best Exotic Marigold Hotel	33,662	1,422,012	$490,647	$19,408,061	130	Buy
21	Fury	33,481	1,190,035	$547,274	$21,721,910	7	Buy
22	Outlander: Season 1 Vol. 1	31,251	171,456	$1,144,874	$4,914,814	2	Buy
23	The Book of Life	30,593	782,893	$522,425	$13,568,953	7	Buy
24	Birdman or (The Unexpected Virtue of Ignorance)	27,123	334,443	$472,706	$5,805,439	6	Buy
25	Alexander and the Terrible, Horrible, No Good, Very Bad Day	26,366	631,615	$519,508	$11,288,584	5	Buy
26	Sons of Anarchy: The Final Season	26,176	217,796	$934,854	$6,837,955	3	Buy
27	The Red Tent	24,731	24,731	$441,201	$441,201	1	Buy
28	Downton Abbey: Season 5	24,680	528,207	$617,435	$13,736,556	7	Buy
29	Guardians of the Galaxy	24,355	6,180,639	$539,452	$112,057,224	14	Buy
30	Dracula Untold	24,018	830,464	$480,361	$15,642,750	6	Buy

 

[narniadis]

If Hunger games keeps the halving up Mocking Jay 2 wont even sell 2m copies total.....

[Mojoguy]

If Hunger games keeps the halving up Mocking Jay 2 wont even sell 2m copies total.....

Home video sales are falling each year. That's just the way it is, with a few exceptions.

[terrestrial]

[edroger3]

Bluray -65%, DVD -45%. Damn they really need Frozen 2.

[terrestrial]

Bluray -65%, DVD -45%. Damn they really need Frozen 2.

 

I'm guessing they compare it to the week ending 23 February 2014. Not a lot of new releases, all of them TV-series'... I didn't look up what got releases this year as new release, but if no blockbuster movie nor a based on a pay-tv service distributed high scoring TV-series got released I'd not surprised.

 

I post the Blu-Ray chart of that date, I think it shows what I mean (I hope)

United States Blu-ray Sales Chart for Week Ending February 23, 2014

← Previous Chart

Chart Index

Next Chart →

		Title	Units this Week	% Change	Total Units	Spending this Week	Total Spending	Weeks
1	new	Game of Thrones: The Complete Third Season	475,547		475,547	$14,261,655	$14,261,655	1	Buy
2	(1)	The Jungle Book	104,254	-74%	506,573	$3,019,201	$11,049,488	334	Buy
3	(2)	Ender's Game	82,579	-76%	424,252	$1,962,071	$8,781,873	2	Buy
4	(4)	Cloudy with a Chance of Meatballs 2	35,904	-55%	476,849	$824,351	$10,948,441	4	Buy
5	(3)	The Best Man Holiday	35,019	-75%	176,490	$840,113	$4,102,445	2	Buy
6	(7)	Despicable Me 2	33,364	-33%	5,166,435	$727,677	$103,323,703	11	Buy
7	(6)	Jackass Presents: Bad Grandpa	29,351	-44%	368,560	$635,150	$7,893,627	4	Buy
8	(5)	Escape Plan	27,625	-48%	194,087	$551,386	$3,875,103	3	Buy
9	(-)	Game of Thrones: The Complete Second Season	19,959	+970%	520,582	$616,325	$17,833,858	53	Buy
10	(9)	Free Birds	19,203	-56%	133,200	$468,927	$2,982,076	3	Buy
11	(-)	Game of Thrones: The Complete First Season	17,486	+174,760%	641,936	$1,311,265	$37,284,532	103	Buy
12	(8)	The Counselor	17,162	-62%	62,162	$421,854	$1,349,741	2	Buy
13	(10)	Captain Phillips	16,987	-43%	412,605	$389,671	$9,714,533	5	Buy
14	(12)	Fast and Furious 6	16,254	-37%	2,856,963	$505,506	$70,184,412	11	Buy
15	(13)	Last Vegas	13,910	-46%	154,794	$345,796	$3,658,343	56	Buy
16	(14)	Justice League: War	12,559	-48%	106,970	$188,262	$1,666,748	3	Buy
17	(20)	Man of Steel	12,008	-27%	2,948,846	$160,661	$60,436,371	15	Buy
18	(16)	Riddick	11,789	-43%	430,661	$280,692	$10,052,573	6	Buy
19	(23)	Pacific Rim	11,442	+6%	1,632,221	$149,543	$8,559,704	19	Buy
-	(-)	Star Wars Trilogy	11,122	-25%	688,215	$365,250	$42,133,257	492	Buy

[BadAtGender]

Bluray -65%, DVD -45%. Damn they really need Frozen 2.

 

 

 

I'm guessing they compare it to the week ending 23 February 2014. Not a lot of new releases, all of them TV-series'... I didn't look up what got releases this year as new release, but if no blockbuster movie nor a based on a pay-tv service distributed high scoring TV-series got released I'd not surprised.

 

The comparable week a year ago was the one Frozen was released: http://www.the-numbers.com/home-market/packaged-media-sales-chart/2014/03/23

[edroger3]

 

I'm guessing they compare it to the week ending 23 February 2014. Not a lot of new releases, all of them TV-series'... I didn't look up what got releases this year as new release, but if no blockbuster movie nor a based on a pay-tv service distributed high scoring TV-series got released I'd not surprised.

 

 

In  Week 12/2015 disk sales was 112M$, in week 11/2015 (MJ1 opening) 120M$ and in week 10/2015 (BH6 opening) 138M$. Frozen alone did 125M$ in first week in release (more than the weekly sales of the entire market). So "they really need Frozen 2", that this year could be Minions.

[terrestrial]

I picked the wrong month...  

 

I don't know why, but that happed to me now the 3rd time (the other two times happened here in RL this week), for whatever reason (maybe bcs it was AGAIN snowing here ) I seem to be stuck mentally in 'it's winter not spring' feeling

 

This week we had already a gale/hurricane (= Orkan),...

http://americanlivewire.com/2015-04-01-intense-storm-kills-at-least-9-people-in-europe/

In my wider/larger region no train, uptown railroad or.... was driving anymore, many streets blocked..., also we had additional repeatedly snow (including again this night) and hail, mostly melted away again now = high noon

I live on the top of a hill in southern Germany, fingers crossed we will be back to silent nights tonight, my family looks a bit sleep-deprived, including the dog

[terrestrial]

too early, only Blu-Ray is out

Edited April 6, 2015 by terrestrial