The Prediction Of Box Office Revenue In The Film Industry

* 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.

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?

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.

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.

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

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.

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

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.

From its beginning in the 1890s, the film industry has never been stagnant. Consumers continuously spend their hard earned money on the films that are released in theaters every week. However, choosing which film to buy tickets for can be rather difficult. Thankfully, the hundreds of movies that have been released can be grouped into several genres such as, comedy, horror, and fantasy.

Despite that the lack of quality is evident, there is limited creativity involved in terms of development and production. There are problems associated with the distribution network also. Movies lose their sheen in this prospective and not do well. This raises the opinion that the box office is facing disaster. I believe that there is disproportion between the number of movies and the cash pool of the industry.

This movie will most likely generate a lot of ad revenue, which will make it

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,

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,

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.

is growing outside of the USA. This kind of growth includes the large countries that previously specialised in film production. For countries such as China and India, the annual release of films has grown progressively for the past decade, followed by a forced growing purchase power and investments in cinemas (Lorenzen, M. 2008). The American film industry must, in a way, watch its back. Especially when the amount of small film countries, such as Denmark and Switzerland, has grown. The smaller countries have attracted attention by not only up-scaling their production, but also winning market shares from Hollywood. Other new filmmaking countries are also on the rise, with Korea, Mexico etc. joining the market, who bring cheaper production technologies to their advantage (Lorenzen, M. 2008).