Once upon a time, it was all about DVD sales. Now, it’s far more about Video On Demand (VOD), television rights and streaming rights. (For more, read: The Future of the Television Industry.)
For some producers, selling pay-TV and international rights is a big source of profit because the producer doesn’t have to pay for marketing and P A costs. Films have to leave the theater at some point but they can remain evergreen on TV. How many times have you flipped through channels and come across “The Notebook” or “The Devil Wears Prada” yet again? There's also money to be made 32,000 feet in the air: airlines pay hefty sums for in-flight entertainment.
As for VOD, revenue from these deals should add hundreds of millions to a studio's bottom line. For indie films, there are several VOD release strategies: day-and-date (movies released simultaneously in theaters and VOD), day-before-date (VOD before theatrical) and VOD-only. So movies that don’t have the special effects and big-name stars to lure people to the theater often profit from this model.
And while the DVD market may have slowed dramatically, it’s not a lost cause—at least, for some films. “The Hunger Games” sold 3.8 million copies in its first weekend on DVD/Blu-Ray, so if a property is branded or has a huge built-in audience, DVD/Blu-Ray sales still could be robust.
