Posted by Johnboy at proxy.iwerks.com on November 17, 1999 at 12:26:17:
In Reply to: Catatonic in a closet posted by Switch625 on November 17, 1999 at 11:31:36:
As one of those "self proclaimed" film finance experts (now, THERE'S a way to make friends, insult the people you want to answer your question [g]), here's a quick and dirty. I won't bore you with my credentials, read my article on distribution on Film 411 if you want more.
-Correct on the Weinsteins, they bought Dogma out from Miramax for about $12M.
-They then sell the film to Lions Gate for about $14M. And that's the end of the deal for the Weinsteins, at least as far as has been reported in the press. Note that unlike Priest, where the Weinsteins set up a different company owned by them to release the film (called Excalibur as I recall), Lions Gate is a separate entity.
-Release of Dogma is a mix of self distribution and presales in other territories. If I have my guess correct, and it's only an educated guess since I don't work for Lions Gate, they're distributing Theatrical and Video in the US/Canada themselves, with foreign distribution being done by local entities in each country/territory that pay an upfront fee to Lions Gate for the rights.
-Kevin has said that the film is already in profit from foreign presales. Not hard to believe considering the low cost and star power of the film.
-Domestic theatrical returns 40% to 50% of box office to film rental. Film rental goes to Lions Gate, where it's applied against marketing costs of the film (say $10M). So when Dogma hits about $20-25M in domestic Box Office, it's earned back its prints and ad costs. Since the acquisition cost has already been earned from foreign presales, Dogma will be in profit very soon.
-As for when Kevin, the cast, etc see more money - I don't know their deals, and Lions Gate ain't telling as this is sensitive business info. I'd guess, however, that when they recoup their costs, a backend deal for Kevin et al kicks in. So Kevin should start seeing $$ soon, since the film is a bona fide hit.
Hope this help.
Johnboy
: Perhaps this has been discussed alread but...
: Dogma cost 10 Mil to make
: The Brother Weinstein by it from Miramax for what 12 or something?
: So at this point did Lions Gate BUY it? And for how much?
: Where I'm headed is? At what point does Dogma actually start generating a profit for Bob and Harvey ( I assume Miramax made money on the buyout)or for Lions Gate or for Dear Kev if nothing else.
: I know we've got some number crunchers here on the board and a few film finance experts (self proclaimed or otherwise).
: Larry
: who is wondering just how many MORE people he has to get to go see this movie, before he can relax