As fewer people are gathering at movie theaters and more are watching on their devices at home, many people want to know whether the movie or the TV industry is more profitable. Visual media is a multi-billion dollar business, and it is based on both film and television.
People can access both on streaming services. Hollywood studios can make billions on a single film, but a popular television series can earn huge profits for hit shows. Continue reading to learn all about the profitability of movies and television.
The Film Industry
When people go to the movie theater, it can cost $40 or $50 by the time that they get popcorn and a soda. Hollywood tries to help them justify the expense by producing movies that are 3D or those that look great on the big screen. Movies cost millions to make, but if a studio nails it, they can make incredible profits.
They report the profits from movies as a number that includes box office sales both domestically and internationally, merchandise sales, and TV rights. These numbers are in the $200 millions for top movies, so making one hit film is definitely profitable.
Big-budget studio films such as Disney, Warner Brothers, or Paramount make huge profits on big-budget films, but small independent films can also be profitable, earning tens of millions. Although they make less money, their budgets are also smaller. That said, some movies flop and don’t turn a profit.
When a film is no longer in the movie theater, studios can earn money from streaming, home video, or video on demand. Some films can make up for disappointments in the box office through these later sales.
The Television Industry
Television can also be profitable, especially if they put out a popular television series. For example, HBO made huge profits with series such as The Sopranos or Sex and the City. They can also air these series on their streaming platform and attract subscribers.
They can make large profits, but it takes time. The difference is in how they earn their money. Networks make money by selling advertising during the TV show, and they can make more than $2 million per half hour on a popular show.