Exploring ROI on Low-Budget Films: Insights on AVOD and Market Trends (Full Transcript)

Speaker 1: The question is, what kind of budget, like if you have a $350,000 movie, if you have a $500,000 movie, can you expect to generate an ROI on that investment through AVOD specifically? Or just AVOD, or just like basically the revenue streams that you're talking about, without selling international, without like, what's the boiling point where you're seeing like, you know what, really, I mean, if your movie is over $150,000, $200,000, and again, there's case by case basis, I know that, every movie is different. But generally speaking, if it's a $100,000 movie, I mean, obviously, if you have a $10,000 movie that has Nicolas Cage in it, you have a really good chance of making your money back. So the lower the budget, it's always better, but there's a balance. So I don't know, what do you think?

Speaker 2: I think that if you have a decent film that you spent $150,000 on, you can expect to recoup in a couple of years.

Speaker 1: Right. But if you're having, but once we get, we start getting into that half million, 600,000, you really have to, you have to, you have to have all, all cylinders firing at all times, hitting perfectly every single time.

Speaker 2: Yes, unless there is something going on in the market that makes your content valuable. An anomaly.

Speaker 1: For example. An anomaly, basically.

Speaker 2: Well, our black cinema, we have lots of films that make $300,000, $400,000, $500,000, okay? It's an underserved market right now. Right. So how long that will last, I don't know.

Speaker 1: Right. I mean, well, Tyler Perry built an entire empire off of that niche.

Speaker 2: Exactly. So, you know, so it, it, the answer is it depends. So you don't necessarily, and none of those have stars. Right. They don't have any stars in, you know, a couple of them might have some Instagram, celebrities. Yeah. But, but, but in general, it's, it's not necessary for them to be successful. It has to be a good, still has to be a good story and have good production value.

Speaker 1: But, but generally that's not enough anymore.

Speaker 2: Right. It's not. But, you know, but that is an underserved market and, and we see quite a bit of success for that. You know, so.