Essay On Linear Regression

The volatility we used is the industry volatility approximated from the standard deviation of returns from 99 movies’ sequel. When we are evaluating a quoted price of a sequel right, 9.2728 will be a good bench mark. According to our simple NPV analysis, we would reject the

From Appendix 1, it has been determined that the PV of Driving Miss Daisy, Dead Poets Society and Batman are $95.42M, $41.27M and $27.21M respectively. The large magnitude of the PV of these 3 film sequels undermine the relatively smaller $4.96M we calculated earlier.

You provided no discussion about TAXYPR, TGEG, and DMC in Table 4. How can you insert TGEG and DMC into the regression equation as explanatory variables?

3. Visit the top 15 movie stocks according to HSX (http://www.movies.hsx.com/moviestockindex.htm). Do you agree with the predictions of the Hollywood Stock Exchange? How would you use a tool like this if you were a movie producer?

Upon looking at films that typically earn profits in ancillary markets, they have high potential with video game sales, novelization, and toy sales. Unfortunately for the producers of the film, Get Out will not be made into a video game or toys. The target audience is certainly older adults, so the only potential for a supplemental release would be the creation of a novel. The limited possibilities of further releases in the ancillary markets limits the potential for growth after theaters, so this will be important to track over the film’s

Adventure movies on the other hand, have an average performance in the market. Its total gross and operating gross indicate that people are developing interest in it and with time it might be competing with the action movies. From its mean and standard deviation, the genre is making its mark in the movie industry.

4. The bargaining power of buyers: The outlook for the target market isn’t favorable for the movie industry because it will not be growing as fast as the overall population. Buyer power is a strong force because of the target market and several other factors including: the undifferentiated product offered, switching to an alternative is simple and low cost, and customers can stay home and watch movies. The consumers are also complaining about concession and ticket costs, along with the advertisements before the film is shown.

To beginning with,the author assumes that will increase profit if they willing to pay million of dollarsto Robin. This assumption is fallcy the author is not sure that the film will attain financially successful. For exmaple, there are many movie that involved many satrs movie and did not make successful. Thereby, this assumption is convincing. Second, the author assumption that the amount of money will

The motion picture industry is a competitive business. More than 50 studios produce a total of 300 to 400 new motion pictures each year, and the financial success of each motion picture varies considerably. The opening weekend gross sales ($millions), the total gross sales ($millions), the number of theaters the movie was shown in, and the number of weeks the motion picture was in the top 60 for gross sales are common variables used to measure the

Based on our valuation of the investment, as outlined below in the Analysis portion of the report, we have determined a per-movie-value of $8.9 million when considering purchasing the rights to the entire portfolio of 99 movies analyzed in the sample data. Based on production of 10 sequels, the per-movie-value of the portfolio would be $52.25 million. Our calculations based on the hypothetical portfolio is that Arundel Partners should make this investment as long as the present value of the expected cash flows from the sequel revenues exceeds the cost of production plus the cost of the investment. Depending on what value a studio will accept as payment per sequel, there appears to be significant profitability in the investment.

Even there is an enormous uncertainty of film production and great amount of film specific investment, greater the investment can higher the probability. This is the information asymmetry in film industry, because only the production company knows the amount of investment.

Based on the limited sample, popular movies are generally increasing over the decades. However, more data would need to be collected in order to make an accurate conclusion. I created the inequality 98 ≤ y ≤ 194 to represent my data because none of the movies from the 1980’s to 2000’s were solutions to the inequality for the running time popular movies in the 1970’s. Although some of the movies from the 1980’s and 90’s are shorter than the movies in the 1970’s, all three of the 2000’s movies from my data are longer than the movies from the 1970’s and 80’s. This shows that there has in fact been an increase in movie duration over the decades. I think that the running times of popular movies will continue to increase in the future decades.

These numbers do not include 2015’s most anticipated movies Star Wars: The Force Awakens, which is expected to break the two billion dollar mark and become the highest grossing movie of all time. Even after two months since its initial release it is still being played at every cinema, ever. They are so struck for ideas that they made a movie about Walt Disney and made money. What’s next, a biopic about the guy that cleans the toilets in Tomorrowland6?

2. In all the three methods below, we calculated the per-film value of a portfolio first, and then make a summary based on the six main studios. The classified summary should help us analyze different film sequel rights and which price Arundel Partners should pay. In the DCF Valuation, we discounted the PV of Net Inflows at Year 4 and PV of Negative Cost at Year 3 to Today respectively. Then we make the difference of the two discounted PV to get the value of sequel rights. According to Exhibit 1, only MCA UNIVERSAL and THE WALT DISNEY COMPANY get positive portfolio valuation. If Arundel Partners can buy sequel rights cheaper than 4.58 million dollars per film (MCA UNIVERSAL) and 6.21 million dollars per film (THE WALT DISNEY COMPANY) respectively, the sequel rights are obviously profitable. On the other hand, Partners should be prudential about rights options due to negative valuations in other four studios. As we know that the sequel rights are not obligation and Arundel Partners can choose not to exercise the option, we apply Decision-tree approach. If

Overseas markets may have punched the gut of Hollywood, but it was nothing compared to the