By Charles C. Moul
This brief guide collects essays on all features of the movie by means of major professionals in political financial system, economics, accounting, finance, and advertising. as well as bringing the reader an up to date viewpoint on what's identified and what has been complete, it contains either new findings on a number of themes and instructions for extra study. subject matters comprise estimation of theatrical and ancillary call for, profitability stories, the solution of obtrusive paradoxes in studio govt habit, the interplay of the and govt, the affects of the latest adjustments in accounting criteria, and the position and value of participation contracts. New effects comprise findings at the precise nature of the seasonality of theatrical call for, the predictive strength of surveys dependent upon trailers, the impression of the Academy Awards, the efectiveness of past heritage measures to gauge forged contributors and administrators, and the substitutability of flicks throughout varied genres.
Table of Contents
1. Critiquing Hollywood: the political financial system of films Janet Wasko
2. movie creation within the electronic age: what can we learn about the prior and the longer term S. Abraham Ravid
3. motion picture accounting Harold L. Vogel
4. Theatrical releases and the launching of films Charles C. Moul and Steven M. Shugan
5. the flicks exhibition enterprise: serious matters, perform, and learn Jehoshua Eliashberg
6. gains out of the image: examine concerns and profit resources past the North American field workplace Charles B. Weinberg.
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Additional info for A Concise Handbook of Movie Industry Economics
Very Violent (VV) films are films that are described as violent with a qualifying adjective such as extremely violent or graphic violence. SEXV are films that are rated both for violence and for sexual or sensual content. Source: Ravid and Basuroy (2003). In other words, returns on very violent films are not stellar, but they are more predictable than average. 2b). 4 percent “break even,” consistent with all previous work. Violent films as a whole break even less often than other films. ”23 Thus, producing violent films may not be a profit-maximizing strategy, but it is a safer bet for executives.
Generally, these media economics texts and the journal echo the concerns of mainstream (neoclassical) economics. As the journal’s first editor explains: Media economics is concerned with how media operators meet the informational and entertainment wants and needs of audiences, advertisers and society with available resources. It deals with the factors influencing production of media goods and services and the allocation of those products for consumption. (Picard 1989, p. 7) For the most part, the emphasis of media economics is on microeconomic issues rather than macroanalysis and focuses primarily on producers and consumers in media markets.
An excellent series of articles in Hollywood Reporter (1991) by David Robb shows how net-profit contracts are used and abused. The articles establish a tendency to inflate costs and show that net profits were indeed unlikely to be realized, using very nice case studies. , which cost a little more than $50 million to produce, had revenues in excess of $205 million by December 31, 1990. Yet, the profit statement sent to investors showed a loss of close to $20 million. 24 Why use profit-sharing contracts at all?