The mostly dreary new analysis from SNL Kagan reflects the continuing decline last year in domestic home video sales and rentals — and helps to explain why studios are so determined to expand overseas. The research firm says that the average film only recouped 46% of the release costs (negative costs plus domestic prints and advertising) from domestic box office sales and home video transactions. That’s down from 48% in 2010. Paramount’s 14 films delivered the best performance. Kagan figures the studio collected $895.5M from theaters and $242.9M in cash flow from video transactions, equal to 73% of its $1.55B in release costs. True Grit helped with domestic returns covering 134% of its $90.9M in release costs. The Weinstein Co followed with 11 films that generated $102.2M from theaters and $49.0M from home video, 70% of its $215.1M in release costs. Its top title was The King’s Speech, with a 216% return on $50.2M in release costs. Among other studios, Warner Bros also beat the industry average with a 67% return followed by DreamWorks Animation (61%) and Disney (58%). Low budget films dominate the top performing films. They include IFC Films’ Cave Of Forgotten Dreams (941% on $455,000 in release costs), Warner Bros’ Hubble 3D (754% on $2.8M), Fox Searchlight’s Another Earth (429% on $488,000), Producers Distribution’s Senna (258% on $557,000), and Rogue Pictures’ Catfish (258% on $1.6M). Top major releases included Universal’s Bridesmaids (243% on $73.9M) and Disney’s The Help (238% on $66.9M). Kagan says the annual study was based on an analysis of 450 films released on DVD/Blu-ray in 2011.

Do the release costs include the budget of the film?
Yes. The “negative cost” of a film is what it costs to produce a movie that is ready for distribution.
Hey studios,
DVDs are becoming a thing of the past and Blu-Ray never caught on. People just don’t care enough to buy the dvds anymore and it would help if the majority of movies were half-way decent.
Why buy the DVD when one can DVR in fantastic quality?
Movies are released on On Demand and movie channels way too soon for consumers to pay $20 for the DVD or $50 for the Blu-Ray.
Just not enough movies released that viewers want to own and watch over and over again.
If your paying $50 for blu-ray discs, you seriously need to find another place to shop.
$50 for Blu-Ray? $20 for DVD? Do you get out much?
Actually, for those who don’t like to shop online, $20 for a DVD is not outrageous. I think I saw Safe House for 15.99 at BEST BUY the other day. I haven’t seen Blu-Rays for $50 but I did see them for 39.99 when they were first released a few years ago.
Vinny in case you didn’t get the message: Blu-Rays are $15-$30 now.
Studios,
Vinny doesn’t speak for the majority. Only for himself. Any man who pays $50 for a Blu-ray shouldn’t be allowed to participate in this discussion.
Keep the Blu-rays coming along.
I agree in general although anyone who pays $20 for a DVD or $50 for a blu ray is a boob. Those prices are high by 2X or more depending on how thorough you are when researching where to purchase.
MAKE. BETTER. MOVIES.
Paying over $200 million for a Battleship or Men in Black sequel won’t cut it. Hell, an assembly-line, paint-by-numbers Johnny Depp vehicle isn’t even a guarantee.
21 Jump Street cost about $50 million and it was brilliant.
Green Hornet, same producer and Apatow-cast tie-in, and for $100+ Sony made nothing.
Unless you have a track record, there’s no reason at all to be throwing $100+ million at broad ideas with first time players (I’m looking at you 47 Ronin) or consistently underperforming hacks (I’m looking at you Brett Ratner).
Times are changing. Ancillary markets are dwindling. Growing the international market is great, but if more positively performing (and better developed) properties like the ones Marvel Studios makes keeps coming out… China isn’t going to save your Hasbro movies, Hollywood.
Live and learn, or die.
I don’t know the answer to this, so this is a legitimate question, but how much do US box office revenues really matter at this point? Obviously, if you do big numbers in theatres, that’s great, but isn’t the real money in putting together a library that you can sell to your corporate synergy brother? Or to others like NetFlix, foreign, etc. If DARK KNIGHT spends, I dunno, $75M on advertising, how much of that goes right back into corporate pockets a la other Time Warner owned entities? If they promo the shit out of it on TNT during the playoffs, is that ‘cost’ really a ‘cost’ or is it a way for the film division to ‘lose money’ (or not show as much of a profit) while touting cable ad sale revenue? This ‘cost vs. box-office’ argument seems so… 1995.
EXACTLY. If Universal spent $X on Battleship ads on NBC/E!/USA/Bravo then that goes right back into the company.
I hate it when some idiot tries to speak for everyone else. Actually, bluray HAS caught on. Just because you don’t have an interest, doesnt mean others don’t. It may not be as big as streaming, but so what? There will always be a market for physical discs. Studios shouldn’t stop making discs just because you don’t like them.
David Pogue in this Sunday’s NYT says the big challenge for streaming media is internet speed–we’re going to be having tons of pauses once everybody starts streaming because we don’t have the bandwidth.
Disks of any kind are nice and smooth–no bandwidth required.
What is amazing to me is that you can get a Blu-Ray PLAYER for around $50 these days. The costs have really dropped.
Sonar makes an excellent point about bandwith. When all the cable and phone companies but caps on our Internet, those discs are going to be looking good again.
This report will probably result in a substantial $1-$2 hike in per-ticket price at movie theatres, perhaps in time for the July 4th weekend.
The industry, with SNL/Kagan’s help, is prepping moviegoers for that steep 10%-15% ticket price hike.
Just keep producing expensive bad movies, remakes, gimmicky 3D and raising ticket prices! I think that will solve the revenue problem right away.
Matinees are too expensive. Can’t imagine a family going to a movie theater these days, maybe a drive-in theater.
BTW, anyone notice or care how crappy the quality of digital TV is? Lovely to have so many channels now but they all look like over-compressed youtube videos. Even the HD stuff is terrible.