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Distributors:How much do they make then?

Posted: Fri Jan 09, 2004 1:48 pm
by eduardo
Hi All,

Just asking a question as in a previous thread "The Death of Porn" some forumites claimed that it was the distributors who made all the money.

So my question is. On a Adult DVD/VHS tape that costs say ?20-?25 how much do the distributors make from this?

To be a bit clearer. How much would an Adult retailer pay for the product from the distributor and also how much does the distributor pay when they buy it from the producers? Approximately.

I ask as I used to manage a WHSmiths (about 3 years ago)so I know roughly what the wholesale price is of mainstream filmsas compared to the retail price.

Just wondering whether the mainstream world is similar to the world of Adult Entertainment or are the distributors indeed sharks?

As I said I'm not in the business nor do I have any intention of getting into it as I'm happy in my own field.

I suppose you could say that I'm just being a nosey git. Feel free to tell me to mind my own business if you think that it's nothing to do with me.

Re: Distributors:How much do they make then?

Posted: Fri Jan 09, 2004 4:45 pm
by davewells
Yeah 200% is about right. An old employer of me used to get $20,000 per movie. Giving the client ( distributor ) an edited master. And they would sell the finished tape for $70.00 per item ( mail order only ) for one year, then $40.00 in shops for year two, $20.00 year three. And then 5 years down the line they'd probably be in the $5 bucks apeice bucket.
Most people who frequent this site would probably be quite amazed how many tapes are actually sold per title. Anyone like to predict, then I'll come back with some answers.

Re: Distributors:How much do they make then?

Posted: Fri Jan 09, 2004 5:00 pm
by joe king
'actually sold per title'
42?


Re: Distributors:How much do they make then?

Posted: Fri Jan 09, 2004 6:09 pm
by marcusallen
The whole thing is academic in the sense that one can sell several times for different reasons, or give exclusivity or, or, or.........................etc

The point is that if an established producer was not happy with his deals, he would no longer be an ctive producer. Sure, he may well wish for more money and indeed actively seek it, but it ain't always going to happen.

My lawyer charges ?300 p/h & reckons it is not enough. So beit.

No-one is beholden to this biz. It is a matter of choice and if it don't suit...........................................

Re: Distributors:How much do they make then?

Posted: Sat Jan 10, 2004 8:35 am
by eduardo
So really the answer is that it seems most distributors do make a roaring profit then.

In the mainstream world you can buy a film wholesale from ?5.50 up to say ?8 (facts and figures a few years old) and the films sell for about ?12-?15.
Obviously discounts apply for bulk buying discounts etc.

In short a 200% mark up is alot but I agree with Marcus I suppose. It's market forces. If you like the product and price you buy or sell it. If you don't then you don't have to. It is a matter of choice.

Anyway thanks for response to the thread.

Re: Distributors

Posted: Sat Jan 10, 2004 8:59 pm
by videokim
This is a tricky question & no sensible film maker would ever tell the truth as some people will earn more than others depending on their sales, orginality & over or under selling theirselves.
Once you only had certain places to go with your films but with the changes over the last couple of years were now in more control of our futures, the ones trying to be fair have a hard slog as unlike their conning counterparts they are working with us to form a trusted working relationship earning a smaller percentage than the filmakers themselves.

Kim