Download E-books The Hollywood Economist 2.0: The Hidden Financial Reality Behind the Movies PDF

By Edward Jay Epstein

A totally revised version of the preferred advisor to Hollywood funds, up to date to mirror even more moderen movies and trends

In a Freakonomics-meets-Hollywood saga, veteran investigative reporter Edward Jay Epstein is going undercover to discover Hollywood’s “invisible funds machine,” probing the dazzlingly advanced funds in the back of the hits and flops, whereas he solutions an incredibly tough query: How do the studiosmake their money?

We additionally learn:

+ How and why the studios harvest silver from previous movie prints ...

+ Why stars do—or don’t do—their personal stunts ...

+ the way forward for Netflix: Why the “next monstrous factor” now turns out in such deep trouble...

+ What it bills to insure Nicole Kidman’s correct knee…

+ How Hollywood manipulates Wall road: including the tale of the purchase of MGM… in which a consortium of banks and hedge money misplaced a few $5 billion… whereas Hollywood made millions.

+ Why Arnold Schwarzenegger is taken into account a freelance genius…

+ The destiny of significant fare: How HBO, AMC, and Showtime have stumbled on how you can become profitable provide grownup drama, whereas the Hollywood studios like to cater to youngster audiences.

+ Why Lara Croft: Tomb Raider is thought of a “masterpiece” of financing ...

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Already, theatrical releases, regardless of the blinding attract they nonetheless carry for the media, serve basically as launching systems for video clips, DVDs, community television, pay-TV, video games, and a bunch of alternative items. this alteration isn't really unavoidably undesirable information for Hollywood’s colossal six studios. Ever because the Seventies, they've got produced the most important proportion of television’s so much winning sequence, together with such hits because the a number of CSI exhibits. Their significant libraries syndicate or license to cable networks and native stations so much in their video clips and tv indicates, they usually earn a royalty from each one motion picture despatched out at Netflix, in addition to licensing charges on strikes rented at Blockbuster and different videostore chains. Even Redbox will pay the studio an identical wholesale rate as different video shops (about sixty five percentage of the retail price). as a result, it isn’t unbelievable that the studios are actually selling executives who're more matured with the mass viewers than with the vanishing movie-theater viewers. THE final DAYS OF THE VIDEO shop In 1997, magnate Sumner Redstone warned Hollywood studios that the video shop enterprise “is going into the lavatory” if it didn’t get a few aid. His corporation, Viacom, not just owned Paramount, yet Blockbuster leisure. leases from Blockbuster’s 6,000 shops placed $3. nine billion funds within the six significant studios’ wallet, and he argued that “the studios can’t stay with out a video apartment enterprise. we're your revenue. ” accordingly, the studios agreed to percentage the price of stocking Blockbuster’s shops in go back for a proportion of its condo sales. He gained that conflict, yet misplaced the battle. Fourteen years later, thirds of America’s video shops have closed and Blockbuster has long past bust. In April 2011, Dish community got it out of a financial ruin public sale with plans to transform what continues to be of its apartment shop enterprise to streaming a los angeles Netflix and film merchandising machines. the opposite significant apartment shop, motion picture Gallery, had liquidated its 4,700 shops in April 2010. “The shop version is now dead,” a former most sensible government just about Blockbusters wrote me lately. “The movement to $1-per-day leases has performed it in. ” The pioneer in dishing out $1 condo DVDs out of kiosks in fast-food eating places and supermarkets is Redbox. It used to be created in 2004 as a three way partnership among McDonald’s and Coinstar, which then received out McDonald’s. by means of taking out clerks, actual property rentals, and the shop itself, Redbox created a company version with which no brick-and-mortar shops may compete. Redbox did have a stumbling block: It needed to finance the purchases of latest titles weekly. To get the wholesale rate of $15–$18 in line with identify from the 2 major wholesalers, VPD and Ingram, it wanted a wide minimal order. “The capital had to fill the … machines used to be outstripping Redbox’s earnings,” stated one individual taken with the enterprise. The irony this is the studios supplied Redbox an answer. to delight an indignant Walmart, the studios’ greatest DVD customer—which bought such a lot of its new titles within the first weeks in their release—it had to hold up Redbox’s releases.

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