The Prediction Of Box Office Revenue In The Film Industry

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

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.

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?

Motion pictures are a key driver of the market for entertainment products, one of the largest export markets in US. Motion picture industry consists of three stages: studio production, distribution, and exhibition. The studios produce the lifeblood of the industry, the films that are its content. The biggest players at this level are the majors, big studios which integrate production and distribution, as do the slightly smaller mini-majors. The next stage is distribution. Distributors are the intermediaries between the studios and exhibitors. Distribution entails all steps following a film’s artistic completion including marketing, logistics, and administration. Distributors coordinate the manufacture and distribution of

* S is the present value of net inflows of hypothetical sequels at year 4; we attached different values to S for the various studios using an average of the present value of net inflows of hypothetical sequels of each studio in 1999 (found in Exhibit 7). S was also computed for the overall portfolio using an average of the present value of net inflows of hypothetical sequels of all studios.

Everything essential was created and paid for by the production studio from start to finish. In order to make this happen all movies had to make a profit to ensure these production companies required movie theaters to buy a set of their movies for customers to view. After United States v. Paramount decision production studio was divided into sectors and no longer operated as monopolies. The movie industry today differs from Old Hollywood due to its many avenues of revenue. Movies, once done being shown at the movie theatre maybe shown on TV and bought on DVD. For example, according to Variety Magazine, Girls Trip brought in 137,348,394 at the worldwide box office and has now been released for DVD sale as of October 17, 2017. Another way Hollywood contrast sharply between old and the new age is the distribution method. Hollywood now sales the rights the distribute and or show the product typically done through a contract which states of the amount sold they get X amount of profits. The distributor in addition to being able to sell the product must then also provide an adequate advertisement to promote the sale of the

Analyzing the international outlook of this industry, also according to the same source, we can see the huge potential for Cineplex in terms of opportunities. Global revenue only from Box Office in 2014 increased by 1% over the previous year, or U$ 26billions, especially considering Asia Pacific Region (+ 12%) and China (+ 4%). Overall, the global growth rate of this industry was 6% in 2014.

As the movie industry moved into the 80's and 90's a new and distinctive type of film emerged. This new style was the Hollywood studio blockbuster. As the studios began making more and more blockbusters a vacuum was created that independent film makers were happy to fill. Though opposites in style, they compliment one another in the main goal of Hollywood: making a profit. These two distinctive styles of film have simultaneously worked together to see the reemergence and recovery of 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.

Due to film making becoming more of a business than about the art, companies are not willing to take as many risks as they do not want to lose money investing in an unknown film story when they can easily release a known product that they know will make them money, therefore it is important for independent films to make

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.

With the economy in a decline, Cineplex may not be making their annual quota and can be experiencing changes in their revenue stream. Although, data has shown that movie theatre attendance has not been negatively affected by economic downturns over the past 25 years, Cineplex should still monitor economic conditions that pose a threat to their business (Cineplex, 2016, p.38). Cineplex continues to advance and require “efficient access to capital in order to fuel growth, execute strategies, and generate future financial returns” (Cineplex, 2016, p. 39).

The purpose of our project is to examine the impact different variables such as the budget, popularity, and vote count, have on movies over the past 16 years. Using IBM Watson analytics, we are discovering the trends and relationships between these variables and their effect on movies in the 2000’s. We start out by displaying how the relationship between budget and vote count by year, and its effect on revenue. This report also examines the popularity of the movie industry over the last 16 years by identifying trends in the relationship between release date and popularity of the movies. Next, we look how the budgets for these movies have changed over the last 16 years. By studying these factors, we can better understand how the budget,

The Determinants of Box Office Revenue for Horror Movies article is organized into five different parts; the introduction, survey of the literature, data and model, determinants of box office revenue of horror movies, and the conclusion. The introduction gives background information of horror films over the decades and how it still continues to be a popular genre. The last paragraph of the introduction is the purpose statement can be found. The purpose of the research for this article was to “analyze the motion picture industry” and focus on certain elements to figure out the earnings of horror movies (Terry, King, Walker,

In today’s world thousands of movies release each year. Every movie has its own promotional strategies. To pull audience in theatre, producers and movie distributors use innovative strategies. There is a tough competition between movies, so promotion is most important part.