What Is The Market Value Of Your Film?

What Is The Market Value Of Your Film!

Determining the potential value of a proposed film.

In the United States, the value is typically based on a forecast of revenues (generally 10 years for films and 20 years for television shows), beginning with theatrical release, and including DVD sales, and release to cable  broadcast television networks both domestic and international and inflight airline licensing.

If I say the market valuation of my proposed debut feature "OMA" is US$2.8 Billon, many people in Nollywood will think I have an overrated estimation of myself instead of focusing on the commercial opportunities for the film from the box office, cable TV, OTT distribution platforms and movie merchandise.

Movies have multiple streams of income and taking advantage of the marketing opportunities is a must do to maximise the profit potential of your film in the short term and long term market valuation.

Market value of the movie merchandise for "OMA" is over US$1billion from the sales of "OMA" fashion products, photo book and other collectible items.

The following appraisal on the valuations of movies by Stephen Kerr is very important.

Great filmmaking has always been about telling great stories. You don’t need Leonardo DiCaprio or Denzel Washington to tell a great story. Nor do you need twenty million dollars and exotic locations. Movies that have long lasting value are movies that touch people’s lives and hearts. The original Rocky was not a big budget movie; Little Miss Sunshine was not an expensive movie; and Beasts of the Southern Wild was not a big budget movie. But they all had themes and performances that resonated with countless millions of movie goers around the world.

The proliferation of low quality films that was brought on by the rise of the DVD market in the 1990’s did not do filmmakers any service. It simply encouraged them to make more low quality films. The DVD as a medium is all but dead, and over-the-top delivery services like Netflix and Amazon are not replacing that lost revenue. Movie makers are better off making one great film every three years than three poor quality movies every year. We hope what the client learned from our evaluation of their film library was that maybe they should focus on having 25 really good movies in their catalog instead of 250 so-so ones."
- By Stephen Kerr.
Stephen Kerr, has been an appraiser of film and television properties for more than 25 years. He recently finished the valuation of a major film library for the owners/distributors of those titles. What Kerr gleaned, about the state of the film industry and current market value of independently produced movies, by interviewing almost a dozen highly respected domestic and international film distributors might surprise people. It is not easy for most filmmakers to be objective about the documentaries and movies that they just spent two years of their lives and millions of dollars to make. Distributors have to be objective, they know that films are a product that gets consumed and then put on the shelf like every other entertainment or intellectual property, including books, music and videogames. Sarah Nean Bruce interviewed Mr. Kerr to get his take on the current state of the film industry and respective value of film assets – past their release dates.
https://www.linkedin.com/pulse/how-much-films-worth-stephen-kerr