In the past 10 years, it seems that every film coming out in the summer is a new film to start a franchise, or yet another sequel in a franchise universe. Hell, there are films in low-budget horror franchises that are going on their 3rd films. I don’t even want to mention there’s yet another Saw film called Jigsaw that is due to be released pretty soon.
Just as I predicted the downfall of 3D films in 2015, I predict that the major success of franchise films will eventually wither away for a good while. Why? A good thing can only last so long before people get tired of it. Do you love pizza? Of course you do. Would you love to work at a pizza place where you get to eat pizza all the time? Hell yeah you would. But after a few months you
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That is a terrible start for a cinematic universe with the help of Tom Cruise.
What movies we did get this year were some fantastic original films. Baby Driver, Dunkirk, The Big Sick, and Wind River. All of these films made a lot of money each, and they all got phenomenal reviews. Why? Because people didn’t know what to expect. You can go into a Marvel film and be wowed by the visuals, but you know they’re all paint by numbers with different paint brushes.
Not only are those original films crushing it at the box office, an increasingly growing movement of horror films are cleaning up at the box office. Like IT, small budget horror films can bring in the crowds with little money. The movie The Conjuring made $318 million on a budget of $20 million (I get that it has become a franchise, but they’re still low budget and earn major bucks). The movie Annabelle made $256.9 million on a budget of $6.5 million. I couldn’t tell you one person who stars, wrote, or directed any of those movies. There are a dozen more examples, but you get my point.
What further makes these franchise films start to get weighed down with costs are the actors. No one really cares about A-list actors anymore in films. I don’t go see a superhero film because of a certain actor is in it, no, I go and see it because of the action and comic book story. Have you heard about any films beyond Iron Man that Robert Downey Jr. did that did well in theaters
Driving Miss Daisy, Dead Poets Society and Batman were chosen to be the representative movie sequels with their varied sequel rights values that can be compared to $4.96M. They were chosen because they are all one of the most highly anticipated successful films that can generate sequels. In particular, the PV of these successful sequels will help us determine if we are underpaying or overpaying the current sequel rights for each individual movie.
Movie marketing is a tricky thing. A movie could be a complete disaster, but if the marketing is done right, the movie will do well. If the movie a delightful, but the marketing is done badly, the movie could bomb and cost the studio a lot of money. I’ve seen it happen a lot over the years. Remember that movie John Carter? That movie cost a LOT of money to produce. I saw the movie since I already read the books and knew from what I saw that it was going to be a fun film to watch, but from a marketing standpoint, and having been a marketing major in college, I knew the movie was going to bomb. Why? No one knew what the hell it was about or who the hell John Carter was.
The coveted low-budget horror movie script is the holy grail of Hollywood. These movies are cheap to make and come with a with a built-in fan base making these scripts some of the most sought after properties in the industry. Examine the profit margins for movies like Paranormal Activity, Halloween, or The Blair Witch Project and you’ll see I’m speaking the truth here. Paranormal Activity raked in over $193 million dollars in profit worldwide. But did you know it only cost a mere $15,000 to make? This type of net profit generally doesn’t happen in other genres.
Bad films seem to be even worse when talented people are funding, starring or involved in production. One example is the 1987 film Leonard Part 6. It had a huge cast of stars including Bill Cosby and Tom Courtenay, who were both well respected actors at that time (Bailey). Directing the film was Barry Sonnenfeld, the man behind the Men in Black franchise, The Addams Family film, and Big starring Tom Hanks. Leonard Part 6 could have been an amazing action comedy, but it flopped. To give an example of just one failure, there were no other Leonard films, the franchise started on six, because the backers thought it would be funny to imply there had been five other films. This confused the audience. This caused people to not see the film,
The list of franchises that “went on for too long” is nearly innumerable. Ranging from movies, TV shows, or even books, popular franchises have an uncanny way of sticking around for too long as some higher corporate force looks to earn as many profits as possible. And, what’s worse, stretching such things out for too long may damage not only the ending, but the original story, as well. Because of this, there are very few series’ which actually meet a fitting and appropriate end- but when is enough enough? It’s usually fairly easy to tell, and Hollywood knows it. Nonetheless, they often drag things out for far too long, making unnecessary sequels motivated by purely monetary gain and which damage the originals. These types of films,
Arundel Partners wants to buy the rights to produce the sequels in advance rather than negotiating on a film-by-film basis because otherwise, the studios will have an informational advantage. Later on in the production process, studios will have a greater idea of the quality of the film, making them less likely to sell the rights to more profitable sequels. Advanced rights to the entire portfolio of films mitigates this informational asymmetry and creates an options-pricing model for Arundel. There is value in Arundel’s right to forgo production of the sequel if they discover that the original is a flop. If Arundel chooses to forgo producing a sequel, in this model they are now only taking a $2M loss. To the movie studios, Arundel’s proposal creates great value. By offering the cash for all movies in advance, Arundel is providing upfront financing to the cash-hungry studios, allowing them the resources to pursue other projects, especially big budget blockbusters that have substantial negative costs. The guaranteed profit of the sequel rights fees abolishes some risk for the studios, even though it eliminates their potential upside. By purchasing the rights to an entire portfolio of films from the studios, it also serves Arundel to diversify away the risks of individual films, much like investing in diversified funds of market indexes.
In fact only 12% of its gains were from box office ticket sales, the rest were derived from merchandise ranging from LucasArts’ video games, toys, and anything with the intellectual trademark of Star Wars. The reach of this merchandise became a phenomenon with, “every kid had to have the action figures, lightsabers, key chains, games, books, pajamas, etc” showing a clear imprint of Star Wars on our culture but also a change in tactic of Hollywood corporate. After Star War, Hollywood realized that studios could gain more money from the merchandise than from the actual movies and thus began encouraging movies from which toys and such merchandise could be made. 20th Century Fox thus changed gears from producing critically acclaimed movies like The Right Stuff, to The Terminator 2, and later, the many superhero spin offs we know and love
It can very difficult to make a good sequel to a recent blockbuster movie. How likely is it that lightning will strike twice, not very. Creating an all new epsiodic event for you already established characters can be daungting and redundant. These icons have proven themselves to be heoroes in the viewers eyes and writers have to raise the bar even further to coerce moviegoers to part with their entertainment bucks.
No longer is box-office the main source of revenue for studios as it was in the early days of Hollywood. Today only 6 conglomerates are responsible for almost all of the world's filmmaking. Lucrative licensing deals, merchandising, spin-offs, television shows and so forth have become more important than the actual box-office generated. According to Jay Epstein "Even though today's system of filmed entertainment shares much of the same physical geography, nomenclature, and mythology as the studio system that preceded it, it did not evolve out of it it appeared with surprising suddenness, and replaced it." He argues that a handful of aspiring businessmen took the reins of the industry and steered it to where it is today. These 6 conglomerates hold 72% of the total market share and have an average of $26.5 billion revenue, while the total box-office revenue in the U.S. in 2000 was only $7.6 billion8. Film production today is not the expression of the director, writer or producer but more their attempt to capitalize on the medium. Modern films cost an average if $100 million in advertising and production cost, while the average box-office of
Olaf’s Frozen Adventure, Star Wars: The Last Jedi, Jumanji: Welcome to the Jungle, Pitch Perfect 3, Fifty Shades Freed, The New Mutants, and Avengers: Infinity War. These are seven out of the seventeen movies that appear when googling “movies coming out soon.” They stretch over various genres including comedy, action, children’s movies, musicals, and drama, however there is one common thread connecting all these movies; they are all either spin offs or sequels. In an age of advanced technology and the ability to spread ideas rapidly why is it that the media industry keeps returning to the same ideas. Why are over 41 percent of the movies that show up after searching for “movies being released soon” spin offs or
A movie’s greatness is often measured by its monetary returns. There are numerous examples of huge commercial successes that are able to draw dollars from people with each iteration of their product even when the movies themselves are less memorable. Think of Fast & Furious or Transformers, hugely popular, even producing a great movie from time to time. Less often, is a franchise that produces a string of great films. Star Wars and James Bond have consistently brought viewers to the box office over decades. Many of those movies will be watched by generation after generation. Then there is the oddity, the financial dud that gets better ratings with time. The Shawshank Redemption didn’t impress on opening weekend. It didn’t have a surge after a limited release with great reviews. It did have a compelling story and superb acting providing the viewer an emotional experience. That experience allowed The Shawshank Redemption become one of the most well-regarded movies of recent history.
The trend of sequels began and studios were eager to make large profits off high grossing box office hits. A franchise of over twenty films in forty years, James Bond helped every man with an adventurous side fantasize about the life of a spy. These action packed movies all shared the similar plot of Bond fighting against enemies, primarily Russians. These films also revived the political era because each of his enemies was the same as Americans during the Cold War. Hits such as Jurassic Park, Star Wars, and The Godfather gained cult followings which demanded the stories be continued. The Godfather, a classic, was deemed great enough to add on to, but it like many other sequels received considerably less praise after the second. Yet the big named studios still made them simply to receive the greatest possible profit out of these franchises.
Fans wait months (sometimes, longer) to see a blockbuster, and in that time success can become unattainable. The Force Awakens becomes evaluated not on its own merits, but
With a weekend in the cinema behind it, it made a mark at the box office, setting a record for biggest August debut with $135 million take. Similar to Batman v Superman, the film dropped sharply from Friday to Saturday, losing more than almost half its percent of its box-office momentum. That brings the film’s long-term earning potential into question, and the bad reviews don’t help. With one behind-the-scenes source claiming it needed to make at least $750 million just to break even, it faces a long struggle— especially since it’s likely to be shut out of release in asia, which is becoming a major financial factor for blockbuster
A swath of videos titled “Why Action Movies Suck” have been buzzing around the internet for the past few years. They have discussed surface details of some of the practical and obvious reasons why so many big time action movies released over the past few years have been such a massive disappointment.