How much money does the horror movie industry make

A total of , million tickets were sold to see horror movies in compared with 55, the previous year. Other horror hits in the top 30 movies of included M. As a result horror rose among all genres in terms of market share from being the sixth most popular in to third in Loria added that movie economics is fuelling the commercial clout of the genre. You can produce it for not that much money and get very big returns. In an age of superheroes and shared universes where everything increasingly feels like a big-budget franchise, that can really be a big asset for studios. You want diversity and not just characters and titles that you will also find on lunch boxes. Horror very much delivered it this year. But that originality looks set to be tested next year.

What’s the average cost of making and selling a Hollywood blockbuster?

While horror as a category may be the seventh highest grossing genre in the movie business, the films of the horror genre are sometimes the most profitable. But horror films often cost a fraction of what competing movies in the comedy genre cost, which makes the genre ideal for small risks with huge rewards. Horror has been an ideal genre for films with smaller budgets because a lot of scares can be produced with a minimum of expensive effects. The original «The Texas Chainsaw Massacre» terrified audiences with the simple visual of a man with a murderous power tool. New filmmakers and producers flock to the horror genre to make money and gain a successful reputation. The low production costs of making a film with handheld cameras for a «found footage» type of horror movie can make a cheap film budget even cheaper. While there are plenty of horror films that under-perform, this genre often produces the biggest success stories. The biggest money to be made in the horror business is with material with which audiences are already familiar.

“We’re going to need a bigger boat”

When you think of the most profitable movies at the box office, you probably think of the Hollywood blockbusters — films that grab headlines because of their huge budgets and equally huge profits, like «Avatar,» «Titanic» and «Pirates of the Caribbean. Most of the time, movies with smaller budgets provide studios with the most bang for their buck, if the film reaches a profitable state. We’ll take a look at the top 20 movies that have provided the biggest return on investment ROI according to industry info website, The Numbers , and the ones that have been the biggest Hollywood flops, to find the movie genre that consistently provides the best returns. After the dollar value of the international gross is divided by the movie budget, this value is divided by two to obtain the percentage return ; this extra step is conducted in order to determine the approximate funds that are returned to the movie studio. It should be noted that The Numbers’ statistics are rough estimates of budget and box-office income, and DVD sales and rental income are not included. Do the characters in these classic films reflect what it’s like to work on Wall Street? Bottom Line Though The Numbers might not be precise, it gives a good estimation of the movie genre that can provide the best ROI at the box office. Some of these films did get limited release and went on to make a lot of money through sales and rental, but many of them simply lost their respective film studios buckets of cash. Overall, horror movies consistently have the most films in the top 20 for ROI and the least in the lowest 20 ROI, while drama is the exact opposite, having just two in the top 20 and dominating the bottom

The overall profitability of horror movies

The general perception is that they are fun to make, achievable on the lowest budgets and can earn a lot of money. The final item on that list normally relies on the assumption that the horror movie in question has a chance to be the next Paranormal Activity or Blair Witch Project, both of which were ludicrously successful and therefore almost certainly highly profitable. But what of the horror genre more widely? For every runaway success, there are a whole host of flops and failures which make no money and are barely watched by anyone. This research is just one part of an eighteen-month project I conducted studying all aspects of horror movies. Profitability is always a tricky topic to cover in the film industry. I have added some more expansive notes at the bottom of this article, but here is a precis of the key caveats:. Across all movies released in US cinemas between and , horror movies appear to have the highest chance of making a profit, compared to movies within other genres.

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Alex Huntsberger , Communications Specialist October 18, Here on the OppLoans Financial Sense blog, we write a lot about how to make your money go farther. Compared to the hundreds of millions of dollars it costs to produce an action blockbuster like, say a Marvel movie or a Star War , horror movies are relatively inexpensive to make. In fact, the horror genre has never been one that racked up massive production costs. Rubber masks and shadows are both quite cheap. Jason Blum has taken this approach and filed it down to an exceptionally sharp, stabby point.

The most profitable types of horror movies

From a distance, the movie business might look pretty glamorous. Celebrities and producers glide down red carpets, clutch their Oscars and vacation in St. Barts…just because they. The public can be fickle, the industry is in flux, and just about any movie is an extremely risky investment, even a film starring big name actors and actresses.

Major studios and indie filmmakers alike now spend much of their days looking for new sources of revenue, because dles sales are no longer the be-all and end-all for films. This is in part because it costs far more to make and market a film than it. Romantic comedies or some children’s films need to promote themselves via TV commercials and media advertisements, and those costs add up quickly.

For any type of film, whether a blockbuster or an indie production, things like tax incentives and revenues from product placements can help pay down the budget. If they’re given an ma,e to shoot a film in Canada or Louisiana or Georgia, producers will usually hustle to do so. Still, there are a few tried and true ways that films can attempt to make money. The percentage of revenues an exhibitor gets depends on the contract for each film. Many contracts are intended to help a theater hedge against films that flop at the box office by giving theaters a larger cut of ticket sales for such films, so a deal may have the studio getting how much money does the horror movie industry make smaller percentage of a poorly performing film and a larger percentage of a hit film’s.

You can see the securities filings for large theater chains to see how much of their ticket revenue goes back to tge studios. Studios and distributors generally make more from domestic revenue than from overseas sales because they get a larger percentage. Mwke, overseas ticket sales are incredibly important, especially today. Independent filmmakers can actually make money if they have a great foreign sales agent who can sell their film in key overseas markets.

Once upon a time, it was all about DVD sales. Films have to leave the theater at some point, but they can remain evergreen on TV. As for VOD, revenue from hotror deals should add hundreds of millions to a studio’s bottom line.

As the saying goes, nobody knows anything in Hollywood. The film industry indudtry in flux, and ticket sales alone don’t drive revenue. In Hollywood, there are no guarantees.

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Smart, data-driven decisions can help independent producers succeed. We have crunched the numbers on what to make and how to make it. For this article, we are taking a look at the horror genre. We have boiled down all our data, statistics and modelling to a number of quick takeaways on the horror genre. They are:. Using real-world data and statistical modelling, we are able to estimate the profitability of most major horror movies. This takes into account all income streams from theatrical through to television syndication and offsets all costs including advertising, distribution and fees.

2. …but also the riskiest

Quoctrung Bui. Imagine this scenario: you’re a big movie producer with a little bit of cash in your pocket, ready to invest. What kind of film are makf going to back? What movie would be the best deal for you? A key metric for any investment is return on investment ROI. It’s a measure of the amount of profit from an investment relative to the cost of the investment. The higher ROI, the better the investment. Using data from ,ovie Systema company that collects entertainment industry data, we looked at what kind of films have had the best return on investment over the last five years. And within the horror category, profits can be huge on small investments.