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MGM. Metro Goldwyn Mayer. Ars Gratia Artis Art For Arts Sake?. The Future Strategy of an American Icon. Starring:. Serkan Ileri. Daniel Perez. Alex Rech. Anjali Bal. Alessandro Bigi. Joseph Kujiashvili. The Golden age of Hollywood. 1924
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Metro Goldwyn Mayer Ars Gratia Artis Art For Arts Sake?
The Future Strategy of an American Icon Starring: Serkan Ileri Daniel Perez Alex Rech Anjali Bal Alessandro Bigi Joseph Kujiashvili
The Golden age of Hollywood • 1924 • Merger between Metro picture corp Goldwyn Picture corp and Louis B. Mayer Pictures • early 1930s • Biggest film company in Hollywood • Greta Garbo and John Crawford • 1936 • Gone with the wind • Wizard of oz • Late 1930s • USO • Sell war bonds and finally • James Stewart and Clark Gable enlist
The Age of Innovation • 1940 • Hanna Barbera created Tom&Jerry and other animated series • Numerous Oscar nomination • 1957-1959 • Company shows first losses • Produce Jail house rock and Ben Hur • Ben Hur recive eleven oscar awards • 1962 • Prodice first James Bond movie “Doctor No” • Highest grossing series for MGM • 1968 • Produce 2001 Space Odissey • Contiue to show loss
The Age of Kerkorian • 1969 - 1970 • Kerkorian buys MGM under Tracinda Corp. • Sells MGM memorabilia • Sells distribution center • 1979 • Kerkorian annonces MGM will be a hotel company • 1981 • MGM purchases United Artists and expands library • 1986 • Kerkorian sells MGM to Ted Turner • Ted Turner sells it back 74 days later
The Age of Kerkorian the sequel • 1990 • Kerkorian sells MGM movie lots to Lornar • 1990 • Kerkorian annonces sale of MGM to Giancarlo Paretti • 1996 • Paretti defaults on loans • Causes collapse of Bank Credit Lyonnes, France • Kerkorian repurchases MGM • 1997 • MGM purchases Metromedia International • 2003 - 2004 • MGM owns biggest film libraryin the world • MGM shows profits and zero debt • MGM annonces one time dividend pay-out
Big 7 Easy access to capital Distribution channels Logo & Characters recognition Portfolio diversification Indies vs. Studio • Indies • Lower overhead costs • Indipendence • Innovation • Controversial issue
Value Cost and Speed Value • Decreasing Oscar • Decreasing box office revenues Cost Speed • Average Production Budget 63,8 Million US$ • MGM production budget 26 Million • Can’t control ticket prices • Produces twelve to twenty movies per year beetween UA and MGM • James Bond
Internalinformation Financial Data
SWOT Analysis • Threats • Buy-out • Low recognition production quality • Internet • Chinese market • European response to market share growth • Weacknesses • Smallest of the “Big 7” • Low Brand Recognison in comparison to Dysney • Kerkorian (75% • Strenghts • Box Offices (4100 films) • 8900 TV episodes (120 nations) • 205 Academy Awards • Rights to several logos and characters • Zero debt on Balance sheet • Opportunities • Vertical Integration (Partnership and mergers) • International production companies • Digital Film (decrease costs) • Utilize library for new market creation • Parnership with DVD producers
DVD Sales growth 2002-2003 Canada 39% Germany 76% France 109% MGM controls 17 % of the total DVD market in the USA
MGM & Television Library contains 8900 television shows Operate 108 television channels internationally Own 20% shares in: WE, AMC, IFC Maintain right market NBC television programming internationally
Future strategy • MGM brand development • Theatre production • Cross pubblicities (cinema houses) • Increase quality • Partnership agreement (Pixar, Dreamworks) • Higher investment into film production