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How Films Make Money

How Films Make Money

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The number one question I have been asked over the past three decades is: ‘How Films Make Money’. And yes, independent filmmakers can certainly make money with their films. But the film income landscape can be challenging. The successful filmmaker today will develop a holistic and strategic approach. This means you have to start selling your film all the way through from writing, financing, production, and distribution. Here are some keyways in which independent filmmakers can generate revenue from their films:

1. Pre-Sales

• Filmmakers can sell the rights to their films to distributors in different territories before the film is completed. This can provide upfront cash that helps cover production costs.
Reality check: Film pre-sales only work if you have major talent attached to your film.

2. Film Festivals and Prizes

• Winning awards at film festivals can increase a film’s marketability and lead to distribution deals. Some festivals also offer cash prizes, which can directly contribute to recouping production costs.
Reality check: It is unwise to rely on winning an award to help your film’s profile. Awards are selected by a jury who might not ‘get’ your unique film. Prize money and screening fees are generally 4 figure and take a lot of time travelling to the events.
Review: Why filmmakers attend film festivals  

3. Distribution Deals

• Traditional distribution: Securing a distribution deal with a company that will handle the marketing and distribution of the film in various markets. This can include theatrical releases, which can be lucrative if the film attracts a significant audience.
• Direct distribution: Filmmakers can also choose to distribute their films directly to audiences through platforms like Vimeo On Demand, Amazon Direct Video, or through their own websites. While this cuts out the middleman, it requires a strong marketing strategy.
Reality check: Whichever distribution route you take, remember that financial success relies on the marketing of the film, and the honesty of the distribution company. i.e.: will they pay you, and will they pay on time.
Review: 10 Film Distribution Basics

4. Video on Demand (VOD)

• VOD platforms provide revenue shares based on the number of views or downloads. This includes transactional VOD (TVOD), where viewers pay for each viewing, subscription VOD (SVOD) like Netflix, and ad-supported VOD (AVOD) like Tubi or free channels on platforms like Roku.
Reality check: Success on VOD platforms rely on the visibility of your film, and the amount of marketing you are able to generate for your film.
Review: Get your film delivery requirements right

5. Licensing and Syndication

• Licensing the film for broadcast on television networks or streaming platforms can be another source of income. Syndication deals, particularly for series, can also be profitable if the content has broad appeal.
Reality check: The best way to secure licensing and syndication is to submit your proposal to the development executives of the TV or streaming platform, and hope they click your film into production. You will get a fee, but unlikely to secure additional royalties.
Review: Derisk your film’s finance

6. Merchandising

• Depending on the film’s content and audience, selling merchandise related to the film can be a viable revenue stream. This can include DVDs, posters, clothing, and more. This could be one of the best ways for films to make money.
Reality check: If you can create a film that promotes sales of merchandise, you could have a winner. Again, this takes the additional resources of funding the creation of the goods, plus payment collection and shipping. The Harry Potter films, for example, have huge merch sales. But their film has an extremely high profile.

7. Crowdfunding

• Platforms like Kickstarter, Indiegogo, Greenlit and Patreon can be used not only to fund the initial production but also as ongoing revenue streams by offering exclusive content, experiences, or merchandise in return for donations.
Reality check: Crowdfunding requires a large commitment of time in order to be successful.
Review: The Hidden Benefits of Crowdfunding

8. Educational Sales

• Selling the film to educational institutions for use in classrooms or libraries can open up another revenue stream. Distributors that specialize in educational sales can help filmmakers reach this market.
Reality check: Go to your local education authority and see what topics they are teaching. See if your project matches their curriculum, be it history, science or geography. Making a film that meets their delivery requirements.

9. Screenings and Rentals

• Organizing paid screenings at community centers, art houses, or through local businesses can generate direct revenue. Filmmakers can also rent out their films for private viewings or special events.
Reality check: You might want to get in a van, go on the road, and like the filmmakers behind the classic Jesus Christ vampire Hunter did. They earned a high 6 figure number, but it took them over a year on the road.

10. Secondary Markets

• After the primary run, selling the film in secondary markets (international territories, airlines, hotels) can prolong the revenue life of a film. These additional film distribution windows can provide longtail revenue.
Reality check: Exploiting long term revenue should be part of any film distribution plan. It is time-consuming. You need to evaluate the cost implication of pursuing these additional windows.

Fade out:

Making money as an independent filmmaker often involves juggling multiple revenue streams and maintaining control over as much of the production and distribution process as possible. It requires a balance of creativity in both the artistic and business sides of filmmaking.

Ways Raindance Can Help You

A taster evening; 99 Minute Film School – a single evening explaining how the film industry works.

A taster One Day Masterclass: Saturday Film School – discover the ins-and-outs of writing, directing and producing a film in an information packed and entertaining day

The Raindance 2 year Higher National Degree: a student’s entry point to Higher Education
Study filmmaking or acting over 2 years at one of our 3 international campuses! This is a full-time University level course. Through Raindance, students will have the opportunity to attend renowned courses delivered by industry professionals and attend our networking events to develop further opportunities.

The Raindance BA in Filmmaking or Performance: The Raindance Film School Top-Up BA (Hons) in Film and Performing Arts Practices is a one year practical course. It’s been designed to provide aspiring, and existing, Film and Performing Arts practitioners the opportunity to develop their existing academic or professional experience up to BA level in a chosen pathway or pathways (producing, directing, screenwriting or acting).

The Raindance MA: Study your MA in Filmmaking or Screenwriting at Raindance Film School (accredited by De Montfort University). They are 21st-century degrees for filmmakers, entrepreneurs, creatives and future academics wishing to upskill or transition into the film and digital media industry. These programs provide a unique opportunity for you to benefit from the experience of Industry Experts across the world, whilst developing your personal professional practice, as well as your research and independent study skills.

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