profitability
Film projects accrue profits via distribution of the film through two main distribution mediums, Theatrical and Streaming platforms. It is our intention to utilize both mediums for distribution of False Gods.
Theatrical release: Gross Box Office Revenue from Theatrical release can generally be anticipated using previous box office data of similar films of the same Genre. As such, Gross Box Office Revenue for False Gods is forecasted to be $412 million before tax (EBITDA) for the period 2024 – 2030 with each of the four (4) films forecasted to bring in Gross Box Office Revenue of $103 million. At the end of the 6 years of operation, the accumulated net profit is expected to be $124 million.
Project Performance indicators, which are the Box Office Revenues generated, include a “margin of safety” for the project, which guarantees a timely return on investment, even in the event of any deviations of the project from its estimates. In case of underperformance measures are taken by the Distributors to release the film on all Platforms worldwide to generate revenue and ensure an appreciable ROI.
Streaming release: There are basically two ways of accruing profit in the Streaming sector: An exclusive licensing deal with a Streaming service such as Netflix, Hulu, etc., for a lump sum or a Generic licensing deal based on film sales with a profit share. Given today’s atmosphere, with more and more viewers choosing to stream their films, the Streaming services need to generate more and more content to keep them satisfied. This is good news for films such as False Gods and the Saga of the Reality Crucible as it is a genre that these services are looking for.
An exclusive licensing deal for a lump sum is ubiquitous with Streaming giant Netflix. For False Gods, a project of $10 million, an exclusive licensing deal is estimated to be between $25-50 million. In this regard, for the four films in the Saga of the Reality Crucible, using the upper limit of this estimate, at the end of the 6 years the accumulated net profit is expected to be $160 million.
For other Streaming platforms and exclusive licensing deal for a lump sum is less likely. Streaming giants such as Amazon, Hulu, Direct-to-Consumer, etc., will play the film on their platform for a profit share of 70/30 in favor of the filmmaker. Estimated Gross Revenue for this type of distribution is between $20-80 million for the first 3 months of distribution.
