Angel Studios made headlines last summer with its groundbreaking pay-it-forward model for distributing tickets to the blockbuster film, Sound of Freedom. The company exceeded expectations by distributing 105% of its planned outlay of tickets, sparking both praise and controversy in the industry. In this article, we will delve into the impact of Angel Studios’ unique approach and analyze its financial implications.
Instead of the expected 1,738,367 tickets, Angel Studios distributed a total of 1,827,634 tickets, generating a substantial pool of $26,075,511 from customers paying it forward. This strategy of allowing patrons to purchase tickets for others at $15 per person resulted in a global cume of $249.5 million for the film. This surprising success challenged traditional box office norms, outperforming even major Hollywood blockbusters like Indiana Jones and the Dial of Destiny.
Despite its financial success, Sound of Freedom faced its fair share of controversy. The overlap between supporters of the film and believers in QAnon conspiracy theories created off-screen buzz, while the pay-it-forward model caused confusion in the marketplace. Photos circulating on social media depicted empty auditoriums at the film’s release last July, leading to skepticism about the reported grosses. However, Angel Studios defended the model, stating that almost $26.1 million in tickets were reserved for patrons, with $21.8 million in tickets eventually redeemed.
Angel Studios invested $6.4 million in marketing efforts to promote the availability of free tickets, in addition to $1.1 million in third-party fees to facilitate the pay-it-forward plan. Major theater circuits like AMC, Regal, and Cinemark verified the distribution of 1,827,634 seats. The company’s CEO, Neal Harmon, emphasized the significance of spreading the film’s message, highlighting the willingness of moviegoers to contribute more than 10% of the box office revenue.
AMC Theatres’ EVP of Worldwide Programming, Elizabeth Frank, praised Angel Studios for its innovative approach, describing the distributor as “unencumbered by traditional business practices.” She emphasized the company’s focus on consumers and willingness to bring unconventional projects to theaters. AMC Entertainment CEO, Adam Aron, defended the film against claims of empty theaters, highlighting the significant number of viewers at AMC locations.
Amidst challenges like the 2023 Hollywood strikes and the need to rebuild habitual moviegoing, newer entrants like Angel Studios offer hope for the industry. With plans to release six films this year, including the upcoming biopic Cabrini, the company’s direct marketing and pay-it-forward strategy complement AMC’s efforts to revitalize the cinema experience. The incremental additive effect of Angel Studios’ approach signals a potential shift in the industry landscape.
Angel Studios’ pay-it-forward model has left a lasting impact on the film industry, challenging traditional distribution methods and sparking conversations about audience engagement and box office success. While controversy and skepticism surrounded the model, the financial results speak for themselves, underscoring the potential for innovation in a rapidly changing industry. As Angel Studios continues to disrupt the status quo, the future of cinema distribution remains ripe for transformation.