direct to DVD (question) ?

[Randall_Oelerich]

How does a direct to DVD (Blockbuster, Netflix, etc) deal usually work? I know with theatrical distribution, theaters usually take 50% of gross ticket sales, then of the remainder distributors take at least 50% of that, meaning the filmmaker might in the end get 25% of gross ticket sales. I think they say even if a filmmaker gets nothing from theatrical distribution it is still a great thing, because people now know about the film, and later buy or rent it, and tell others about it.

So, what about life after the theater, or simply direct to DVD/Netflix sales? What kind of deal does the filmmaker usually get from that? Is a distributor involved in direct to DVD, and if so what percentage do they get from direct to DVD distribution?

 

[jls4]

Like Ryan said it differs. Many companies just buy your movie outright - no residuals - just one complete neat payment. Truly I like it better this way - at least on the low end side. It's easier for accounting and such and to keep everyone happy. You say hay we made xyz amount, your portion is this and it's over.

With residuals on a low budget project it can hurt you with accounting costs - somebody has to keep up with all the little checks.

But to answer your question, many just buy you out.