Making Movie Sequels

Negotiate a clause where they can back out of the sequel rights or sell the sequel rights to some other investor

Given our analysis of the motion picture industry, we recommend that Arundel carefully select the major film studios from which they intend to purchase sequel rights. The net present value of hypothetical sequels taken from the available previous years shows not only that the industry is highly volatile, but also that certain production studios are more volatile than others in terms of their recent performance. In addition, some studios are consistently less profitable than others. (See "NPV for Each Production Company" chart in appendix) Since the success of film studios are relatively stable in the short term (see "Rental Shares of Major Film Distributors" table and graph) Because of this stability, it is possible for Arundel to approach more profitable studios with their offer to purchase sequel rights. Out of all the major film studios, only MCA-Universal, Warner Bros., and The Walt Disney Company generate a positive net present value on a per-film basis. However, according to casual inquiries, it is unlikely that any movie studio would enter negotiations with Arundel on a per film price that is less than 1 million. Instead, the film studios seem to

With the purchase of sequel rights, what Arundel is achieving is to have a call option on the revenue that each movie brings. This helps to remove the uncertainty and risks associated with producing a movie, especially with regard to moviegoers’ taste. With the sequel right, Arundel will only exercise this option to produce a sequel if the first movie proved to be popular and the sequel is hence predicted to bring in profits. This provides downside protection, as huge losses (due to high production costs) associated with a failed movie will be avoided.

In addition, once production started, the studio would inevitably form an opinion about the movie and the likeliness that a sequel would be possible. This would put Arundel at a disadvantage, because they would then have to negotiate the price for sequel rights on each film produced, while knowing much less than the production studio about the film.

Studios know that if a movie does well the first time, it is likely to do well the second time and even the third time. King Kong is no exception. Producers can presume that the glory of the original will pass on to the remake since audiences hope for that feeling again. Whether the movie is better or not doesn’t matter. Audiences will go to see King Kong over the years because the remakes are associated with the original.

Adam Sandler has been considered the worst actor to date too many. And to put it kindly his films aren’t well received by critics, at all. For the sake of continuity, I will be using critics reviews from three main sources, IMDB (A website for critic reviews), Rotten Tomatoes (average movie goers reviews) and Metacritic (A combination of both). While None of his films have passed the 7.0 mark on IMDB. The films rank from a chuckle worth picture (6.0-6.4) to a joyless watch (6.0-5.5) and conclude at a car wreck of a motion picture (5.5-3.2).

"Vacation" stars Ed Helms, Christina Applegate, Skler Gisondo and Steele Stebbins as the Griswold family. With the family's spirits in the dumps, Rusty Griswold - played by Ed Helms - decides to take a stroll down memory lane by taking

Arundel can make money selling the rights to a higher bid. Another option to make money is by producing the sequel exercising its rights but this will depend on if the net present value of the production movies is higher than the amount of buying the rights. If the future positive cashflows are undervalued Arundel can seek an arbitrage

There are several aspects of a film that will make a good comedy. A good comedy needs well-rounded characters, adventure, and a love story. If a film has well-rounded characters the viewer can relate to them in some way. If a film has adventure there is never a dull moment that will lull the viewer to sleep, and it’s packed full of crazy obstacles the characters have to pull through. If there is a love story of some kind, serious or funny, it will keep the viewer interested throughout the entire film, and keep the viewer wondering what is going to happen in the end. When a comedy has these things it will surely be a good comedic film.

No one could compare to Bill Murray’s portrayal of a slightly crazy groundskeeper, who exhaustive quest to capture the groundhog was hilarious. They added too many new characters and definitely too many comedians to the mix for this sequel. You know what the say, too many cooks ruin the stew, this couldn’t be more evident in the actors who were tripping over each other ‘s lines in order to get a laugh. They need to stick have stuck to the physical comedy of the first movie and not relied so heavily on what they obviously considered big name attractions.

After evaluation of the proposed acquisition of the movie sequel rights, we recommend to offer movie studios as a per-movie price to purchase the sequel rights for their entire portfolio of movies the studios are going to produce over the next year.

A sequel is typically released to theaters 3 years after the orignal film's initial release. Sequel rights also expire 3 years from the films initial release. Note that Arundel must declare, based on the profitability of the first release, whether or not it will produce the sequel, prior to the expiration of the rights at year 4.

Will Arnett's (Batman) performance is as angsty as it is fun to watch, and Michael Cera (Robin) contradicts nicely as a hyper child with Batman. The cast was clearly enjoying themselves while doing voiceovers, and created an authentic feel for the characters. Each line of clever dialog was said with such enthusiasm that it pulled you straight into the film, and surprised me in how the entire movie moves along like clockwork, with a fun plot to match.

DC Entertainment is not particularly well known for comedy, with movies like Man of Steel and The Dark Knight franchise, this becomes effortless to see why. With Suicide Squad, it was expected to contain the same dark humor found in the trailer, what actually occurred was a disappointment. Late

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