I just wanted to know that how do animation studios make money?
I'm not talking about animation for advertisement. I'm talking about studios that make feature length films.
Like after they have made an animated movie, do they sell it? Or do they tie up with distributors and then share profit from box office?
I've read that these studios get 40% from the box office and the rest goes to distributors.
Now let's say that my animation studio made a movie for 80M dollars. And then it made 500M dollars at box office. If we take 40% of this 500M my studio is supposed to get 200M dollars. Now let's deduct the cost of making the movie I.e, 80M dollars. So ultimately I'm left with 120M dollars at my disposal.
My question is who's pocket does this 120M dollars go to? And if my understanding of the above said working is wrong, do correct me in the comments. Thanks