Rice,
Excellent find.
What we need to remember regarding Freak Talks About Sex is that we are not selling and idea of a film that will need to find actors, directors, producers, camera men, etc... We already have the film made and after adding the musice and re-editing it to feature more of Steve Zahn, it will be ready to release in theatres. All it needs is a distribution company to pick it up.
So we are talking instant revenue from the distribution company that picks it up, just from the upfront advancement fees that we are required to receive. Plus if it gets released to the Foreign market, which Leonard Shapiro is quite experienced in, they do things differently which actually benefits small budget films. They pay higher upfront advancement fees that are non refundable should the movie due badly. Alot of small budget films make a couple of million dollars on the Foreign market fees alone and not taking into account if the film does well, which would be more dollars in our pockets.
Also, another profitable avenue is video sales/rentals. Here is the formula for video sales/rentals: NET of sales/rentals x 20% = royalty for NSKY. Lets say your film is in conservatively speaking, 5000 video stores ranging from Blockbuster,Hollywood videos, Record stores, and independant stores. If each store only does a low $500 a month net x 5000 stores that would equal $500,000 a month net sales.
20% of $500,000 = $100,000 a month profit, and this is based on a very low figure. Movies that are received well could easily average thousands a month which would mean millions of dollars a year.
So we have a lot of ways to make money for NSKY.
And again, patience is the key here.
Retaylor |
