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This article is from the Sex Movies FAQ, by director@gti.net (The Director) with numerous contributions by others.

20.10.4 How much does a distributor wholesale the video to a retailer for?

Ah, the heart of the business. First you have two levels of
distribution. Often the producer or company that owns the film
is also a manufacturer and distributes their own and other
products into the marketplace. The marketplace is very funny
now. Some things go out at a total cost of $3-4 bucks. I don't
see how they can make any money but they do. Many others go
out at $11 from the manufacturer, the distributor tags on a
"nickel" (5 bucks) and the store another "nickel" and that
seems to be the average story. Fetish tapes still seem to go
out at about $18 which is why there are so many folks trying
to enter this business, but they don't understand how to do
it, and therefore usually have disappointing sales after their
first few. (new names, and titles always seem to have a better
than average sale)

 

Continue to:

• prev: 20.10.3 After completing a project how much would a producer receive from a distributor? I assume they sell all rights and raw footage.
• Index
• next: 20.10.5 Perhaps you could differentiate between amateurs and features - shot on video or shot on film. Bottom line - where's the profit made!

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