Revenue Share for Movies on the iTunes Store: An Updated Guide

What is the approximate revenue share for a movie on the iTunes Store? The revenue share for movies on the iTunes Store, now part of Apple TV, follows a standard model where Apple typically retains a percentage of the sales. This article provides an updated guide on the revenue share breakdown, including the differences between purchases and rentals, promotional deals, and exclusive content arrangements.

Industry Standard Revenue Share

The general rule for revenue sharing on the iTunes Store is that Apple retains about 30% of the revenue from digital sales. The remaining 70% is distributed to content owners, which can include studios, distributors, or even individual filmmakers. This model has remained relatively consistent over time, but specific agreements can vary based on negotiations between Apple and content providers.

Role of Distribution Companies

It's important to note that the revenue share on the iTunes Store is significantly impacted by the distribution company that acquires the rights to your film. Distribution companies play a crucial role in the entire process as they typically own the rights to the movie after acquisition. Depending on the terms of your agreement, the distribution company might retain a higher percentage of the revenue, leaving you with a smaller share.

For instance, some distribution companies might keep 25% and you could receive 75%. Alternatively, you might have to pay a fee to the distribution company to host the movie on iTunes, in which case you would keep a larger portion of the revenue. The specifics of these deals can vary greatly depending on negotiations and the terms of your agreement.

Revenue Distribution for New Releases

For newly released movies, the revenue distribution can be different, especially in the case of major studios. Major studios typically retain approximately 90% of the margin from sales and rentals of newly released movies. This applies to both SD (standard definition) and HD (high definition) product offerings.

When it comes to rentals, major studios often retain between 70-75% of the rental revenue. These margins can vary depending on the specific terms of the deals they negotiate, but they generally follow a similar pattern.

Smaller distributors and lesser-known titles might face less favorable deal terms. The exact percentages can fluctuate, making the market somewhat fluid and unpredictable.

Direct Deals with iTunes

While you can try to work directly with iTunes, the platform is generally more responsive to representatives that it already has a relationship with. These representatives, often part of 3rd party professional services, are considered the top of the food chain in digital video distribution. Therefore, working through a reputable representative can maximize your chances of getting a favorable deal.

When working with a representative, the remaining 70% of the revenue (after Apple's 30%) is typically split between you and your representative. It is advisable to have a clear understanding of the fee structure that will be applied by your representative to ensure that your share is maximized.

Conclusion: The revenue share for movies on the iTunes Store is influenced by multiple factors, including the distribution company, sales type, and the negotiating power of both parties. Whether you are a major studio or an independent filmmaker, understanding the nuances of revenue sharing can help you secure a more favorable deal and maximize your earnings.

For those interested in learning more about the business of digital distribution and monetizing their films through the iTunes Store, consider consulting with experienced professionals in the field who can provide tailored advice based on the specifics of your situation.