How Much Does It Cost To Start A Video Production Company? (In 2024)
Looking to start a video production company?
But curious about:
- how much it costs to start a video production company?
- what are the typical video production company startup costs?
- or the actual cost of starting video production companies?
Well, we have the data to prove it, supported by real video production companies and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a video production company?
Based on our data reported by actual video production company founders, the average cost of starting a video production company is between $15 and $320,000.
Additionally, our data shows that the the median startup costs for a video production company are around $5K.
Remember, though, not all video production companies are the same - and neither are people's budgets. It's important to distinguish between different levels or types of video production companies
Real World Examples: How much does it cost to start a video production company?
We asked real video production company founders and business owners how much it actually cost to get started?
Here is what they said:
Kiran Shahbaz
Founder of Snackable Studios ($40K/month)
"The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much."
Kiran is the founder of Snackable, a business helping video creators create, grow, and monetize their content.
Eddie Castillo
Founder of Altered State Productions ($80K/month)
"Total Equipment Startup Costs -" $35,000.
"Total SAAS Startup Costs -" $5,000.
"Total Production Startup Costs -" $8,000.
"Total Marketing Costs -" $2,000.
"Total Salaries Costs -" $150,000.
Eddie Castillo is the co-founder of Altered State Productions, a full-service digital marketing agency that launched without venture capital and has since seen considerable success in the industry.
Aaron Connolly
Founder of Animation Explainers ($85K/month)
"In terms of funding, it wasn’t until Animation Explainers started amassing a stream of return clients that Aaron and Dylan decided to reinvest the money earned back into the company."
Aaron Connolly and Dylan Healy are the co-founders of Animation Explainers, an animation video production company that specializes in explaining complex products, services, and messages for organizations worldwide.
Alex Safavinia
Founder of Explainer Videoly Pte. Ltd. ($100K/month)
"In terms of financing the business, it was my savings. The initial costs were spent on the basics such as desktop computers, animation software, website hosting, electric bills, and so on."
Alex Safavinia is the founder of Kasra Design, a company specializing in custom animated and live-action explainer videos.
CHRIS KELLY
Founder of ProductionCrate, LLC ($50K/month)
"Our first website cost me around $15/year for hosting and some extremely basic web-building tools."
Chris Kelly is the founder of ProductionCrate, a video production business that provides royalty-free music, video effects, graphics, and sound assets to a community of over one million users.
Hope Horner
Founder of Lemonlight ($1.5M/month)
"We wanted to validate the market so we built a $12 website on Squarespace, signed up for a free Mailchimp account, and hacked together a rough sales presentation."
Hope Horner is the founder of Lemonlight, an on-demand video production company that launched in 2014 and generated over $1 million in its first year.
Joe Forte
Founder of D-MAK Productions ($54K/month)
"We started the business with a Canon 60D DSLR camera and a Macbook Pro and grew from there."
Joe Forte is the founder of D-MAK Productions, a video production business that has been operational since 2011, averaging $350k a year in sales for the past five years.
Tarun Lachhwani
Founder of Filmbaker ($50K/month)
"Our initial funding was about 4 - 5 lakhs (INR), starting in 2017, being in a service industry did not require a huge investment but the consistent will to keep getting better at what we do."
Tarun Lachhwani is the co-founder of Filmbaker, a Video Production Company that started in 2017 and has successfully delivered over 1,000 stories for 250+ clientele.
Matthew Gattozzi
Founder of Goodo Studios ($25K/month)
"I started this business by myself as a freelancer in Austin with my camera ( $350 Nikon D3400), a laptop ( $1,100 Dell laptop), and a subscription to Adobe Creative Cloud ( $68/month )."
Matthew Gattozzi is the founder of Goodo Studios, a content creation studio that focuses on creating photos and videos for direct-to-consumer brands.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful video production companies that you can learn from.
Starting a video production company - what you should know:
When it comes to starting a video production company, understanding the nuances between making things cheaper or more expensive is crucial.
Equipment Costs
Purchasing high-quality cameras can be a significant investment. For instance, a decent DSLR or mirrorless camera can cost between $1,000 to $3,000, while professional-grade cinema cameras can set you back anywhere from $5,000 to $15,000 or more. Beyond cameras, you'll need lenses, tripods, microphones, and lighting kits. A basic lighting kit might cost around $100, but more professional setups can easily cost upwards of $1,000.
Editing Software and Computers
Editing software is another essential expense. Adobe Premiere Pro, for instance, offers monthly subscriptions at around $20.99 per month, whereas a one-time purchase of Final Cut Pro X will cost you $299.99. Additionally, high-performance computers are required for smooth video editing. A mid-range video editing PC could cost between $1,500 to $2,500, while more advanced setups might exceed $5,000.
Studio Space and Rentals
Renting studio space can be another major expense. Small studio spaces might cost around $500 per month, whereas larger, fully-equipped studios could range from $2,000 to $5,000 per month depending on the location and amenities. Alternatively, renting equipment as needed can save on upfront costs but expect to pay $100 to $500 per rental, depending on the gear.
Miscellaneous Costs
Additional expenses include insurance, which can be around $500 to $1,000 annually, and marketing, which can vary widely but should be at least a few hundred dollars per month. Keeping these costs in mind, initial startup expenses for a video production company could range from $10,000 to over $50,000, depending on the quality and scope of your equipment and services.
Potential Costs of Starting a Video Production Company
Starting a video production company involves several critical costs, ranging from equipment purchases to operational expenses. Here's an in-depth look at the potential costs involved:
| Category | Item/Service | Cost Range | Notes |
|---|---|---|---|
| Equipment | Camera | $1,000 - $10,000 | Depending on the brand and model, such as DSLR or cinema cameras. |
| Lenses | $500 - $4,000 per lens | Wide range depending on type and quality (e.g., prime, zoom). | |
| Tripod | $100 - $1,000 | Professional-grade options tend to be more expensive. | |
| Lighting Kit | $500 - $3,000 | Includes softboxes, LED panels, and other lighting needs. | |
| Microphones | $100 - $1,500 | Lavalier, shotgun, and other professional mics vary in price. | |
| Audio Recorder | $200 - $1,000 | For capturing high-quality audio separately. | |
| Gimbal/Stabilizer | $200 - $1,000 | Essential for dynamic, smooth camera movements. | |
| Editing | Computer | $1,000 - $4,000 | High-spec machines for video editing, like Mac or high-end PCs. |
| Editing Software | $20 - $50 per month | Subscription services like Adobe Premiere Pro or Final Cut Pro. | |
| External Hard Drives | $100 - $500 each | For storing large video files. | |
| Office Space | Rent | $500 - $2,500 per month | Cost varies significantly by location and office size. |
| Utilities | $100 - $500 per month | Including electricity, internet, and other utilities. | |
| Labor | Salaries (Editors) | $3,000 - $6,000 per month per editor | Depend on experience and location. |
| Freelance Fees | $20 - $100 per hour | Variable depending on project scope and freelancer expertise. | |
| Marketing | Website Hosting | $10 - $50 per month | Services like Bluehost or SiteGround. |
| Domain Registration | $10 - $20 per year | Cost varies by domain name availability and extension. | |
| SEO Services | $500 - $2,000 per month | For improving website visibility. | |
| Social Media Marketing | $200 - $1,000 per month | Depending on ad spend and target demographics. | |
| Miscellaneous | Business Licenses & Permits | $50 - $400 | Varies by jurisdiction. |
| Insurance | $500 - $2,000 per year | Liability insurance to protect against potential lawsuits. | |
| Office Supplies | $100 - $500 | General supplies like stationery, software subscriptions, etc. | |
| Travel Expenses | Variable | For shooting on location, including transportation and accommodation. |
These costs represent a broad spectrum of what might be involved in starting a video production company, varying based on scale, quality of equipment, and location. Proper planning and budgeting can help manage these expenses effectively.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
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