Replies to post #647 on Independent Film Development Corp. (IFLM)

[mrwilson00454]

That assuming it gets made, which it sometimes doesn't. Again the Exec Prod won and an award at Sundance. That's huge. That's real.

[mrwilson00454]

That's 20% + the actual budget and that comes out of first monies. Then there's points above and beyond the 20%. If a $5MM movie makes $50MM at the box office (BO), then a single point is worth about $200K. If the money people have 50 pts, which is typical, then their take is about $9MM above and beyond the production budget +20%, which will already be recouped. Assuming these numbers, the money people take away pre-tax about $15MM ($5MM*120%=$6MM + $9MM(for pts)= $15MM. The power question is what does IFLM make, assuming all these numbers are real (budget, P and A, etc.) The producers, director, actors, screenwriter, etc. get the other 50 pts.

That's easy: all distribution companies take their 15% to 20% off the top. The exhibitor then takes there 15% to 20% (movie theaters don't make a lot at the BO, that's why they charge $7 for popcorn). Depending on the percentage, on $50MM in BO, IFLM could take anywhere from $7.5MM to $10MM.

And that's the way the numbers work. And all this does NOT include VOD, DVD or international, which is typically double the US BO.

FWIW.