How porn makers make money? They must be requiring very big budget to support workers.?
I am sure that only 1 in million spends money for porn, rest watch if they get for free. How do porn survive by just advertisements and directing to other websites and subscriptions only?
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August 19th, 2010 at 12:59 pm
There are millions in the world, Porn will survive even if 1% of porn watchers pay for it. There are quite a lot of people who love porn
August 19th, 2010 at 1:09 pm
well porn in the uk is different to the us.. BOX sets is where the money is.
for examaple
i was contracted to make a 5 dvd box set cost was for props = 5 guys plus 5 girls = £50’000 per dvd
other cost are licence fee’s and hire for location, medicals and food.
if they own their own equipment and do in house editing
each dvd can cost about 60’000 X 5 total cost, not including salary of staff the production company pays the rest of staff on salary so that deduction come in yearly liabilities..
so 300’000 to make a decent BOX set
thats sounds alot but the production company i work for. also offered Royalties of 25p per dvd. =£1.25 per BOX set.
i added this up and figured that they would go bust,,
but they had contract for min distribution totaling 30’000 box sets world wide,,
so although they spent 300 000, on this one production, as lone as they sell them for more than a £10 each they are making on the production..think the box set are sold to retailers for about £20
so a decent production production can turn over £600 000 and only spend £300 000
obviously the production company have massive over heads , but sale gross profit to sale ratio is about 100% on what they spend. to what they take..
other liabilities like the staff salaries, and cost of producing come out of that 100% profit, taking it down to im guessing about 75% profit margin..
so even if some gets copied and put on the net for free sites, profit from in hand dvd,s is still alot
some companies like Cineworld plc ( the uk cinema ) made 30 000 000 million profit … but had to turn over 300 000 000, million to do this… i mean 10% total profit isnt much but when you turn over 300 million = 30 million profit share holders are happy
if each production cost them half a million and profit is a 3rd of a million … then 10 productions they are 3 million up.
the profit isnt in each porn movie is in the massive turn over…
to earn a lot you need to spend a lot