What is ancillary revenue?

• A. Revenue from theatrical box office only.
• B. Revenue made from merchandise and DVD sales.
• C. Revenue from subscription fees only.
• D. Revenue from government grants.

Answer: (B)

Ancillary revenue means income that comes from sources other than the film’s primary release at the box office. It includes things like merchandise, home entertainment sales (such as DVDs), licensing, and later streaming rights—basically money earned from channels connected to the film beyond its theatrical run. Merchandise and DVD sales are classic examples because they generate revenue after the film has opened in theaters, leveraging the film’s brand and appeal. The other options describe money that isn’t produced from selling the film itself through those secondary channels: the box office is the main revenue, subscription fees relate to a streaming service model, and government grants are funding rather than sales revenue.