Explained: The Business of Film Production

Movies are very expensive to make. If you have wondered – ‘Where does the money come from? Where does it go?’, this explainer is for you.

The money for making a film comes from a production house. Earlier, producers were individuals. But now, it is rare to find an individual as a producer.

The Team that makes films

The production house selects the stories it wants to produce. Then, it puts the team together. The team must have at least the following members:

A. Writer

B. Director – The Director is responsible for the entire production of the film. They approve the art sets, they guide the actors, everything.

C. Music Team

D. Specific Technical Directors – The Art Director is responsible for all the sets that you see in the film. The Music Director creates and governs the music. The Action Director manages the action sequences, if any. The Costume Director is responsible for, well, dresses and costumes worn in the film. Likewise, specific directors are taken on board based on the needs of the story.

E. Casting Director – The Casting Director finds the best actor for each role.

F. Technical Team – This team does the execution. Everything in a film must be perfect – the lights, sounds, dialogues, art, music. This team manages the execution.

G. Actors – And finally, the actors bring the story alive on screen.

The production house pays each of these professionals and bears the other costs of making the film. The production house also bears the risk of a film failing.

In addition to costs of production, every film also needs to be marketed. The marketing team ensures that the film is promoted in the right way.

How films are sold

Films make money in different ways. The best known, of course, is that screening rights are given to movie halls, where people pay money to come and see the film.

Internet Streaming platforms like Netflix, Hulu, etc., also pay for the rights to screen the film.

The third way for a film to make money is merchandise. You might have seen toys based on Frozen or Disney Princesses. The production house makes money each time a toy based on that film is sold.

The fourth way for films to make money is international release. For example, suppose we want to see an American film in India. The American production house gives an Indian cinema chain the rights to show the film in their theaters. For this, the Indian theater chain will pay the American production company a decent sum.

Even Indian films make good money on overseas rights since Indian films are popular in Nepal, Pakistan, Middle-East, Canada, Africa, US, and other geographies.