Pros And Cons Of Sequels

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

3. In the event of a hugely successful movie, the studio may want more compensation for the sequel than agreed. Also, studios might potentially seek additional money from Arundel in the event of cost overruns during the making of an initial film. In light of this, we would recommend that Arundel take the following actions in formulating its contracts:

5. Assume that a maximum of ten sequels can be made in any given year (choose the sequels that are most likely to be made—for example if the main character in the film dies then a sequel is unlikely to be made) Using the same decision-tree approach, what would you estimate to be the per-movie value of the sequel rights to the entire portfolio of 99 movies released in 1989 by the six major studios?

All of these films were very successful that resulted in record box-office revenue. The New

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.

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.

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.

What are primary advantages and disadvantages of the approach that was taken by us in valuing the sequel rights? Our analysis of Arundel's proposal includes a net present value calculation of each movie production company. Arundel feels that waiting to purchase sequel rights until after the movie goes into production will make it more difficult and costly to purchase the rights. Below are advantages and disadvantages of our approach.

There have been recent studies on animals where the scientist cloned the animals. Cloning is something many people are split on. Some say it is bad some say it is good. I think cloning is a bad thing. Cloning can be a bad thing in many ways. I will be covering some of those ways in this paper.

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.

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.

When I was a kid, my favorite Star Wars movie was Star Wars: Episode II – Attack of the Clones. To be more accurate, my favorite sequence in any Star wars film was the battle of Geonosis. The years between this film and its sequel were spent reenacting the battle with my action figures. Despite my love for that fight, even at my young age I realized the rest of the film wasn’t as good as the climax. The same holds true now, as Attack of the Clones is only marginally better than its predecessor.

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.

As times are changing, knowledge and information are also changing. With that, the development of motion picture complexity has changed the film industry by a continuing technological evolution. It is evident that films have changed significantly over the last 100 years. The intricacy of filmmaking technology has rapidly progressed, allowing creative potential for filmmakers. Films are often due to technological advances, or even to reintroduce a classic story. Some examples of films that have been remade include Scarface (1932), remade in 1983, and The Magnificent Seven (1960), remade in 1998. King Kong (1933) is another example of a film that has been remade. The remake, King Kong (2005), directed by Peter Jackson, shows technological

characters from the previous movie. The rebel base is now on an ice planet. The