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Overproduction and the Need for Blockbusters

Overproduction and the Need for Blockbusters. Sharon Freeman. In 2006. 30,000 new CD’s were released 291,920 new titles and reissued books were released 607 Hollywood films were made Most of them never made a dime. Overproduction??.

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Overproduction and the Need for Blockbusters

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  1. Overproduction and the Need for Blockbusters Sharon Freeman

  2. In 2006 • 30,000 new CD’s were released • 291,920 new titles and reissued books were released • 607 Hollywood films were made • Most of them never made a dime

  3. Overproduction?? • A crude market logic that assumes that among their nearly infinite offerings a few big-budget blockbusters along with some surprise sleeper hits will generate enough profit to cover losses incurred by everything else.

  4. How it Works Top Grossing Film $337 million Not so Good $18 million

  5. Why it works? • Media firms must know that blockbusters can rise out of their offerings • The considerable rewards of investing in potential blockbusters drive the recurrent demand for highly visible directors et al but only those who have had recent success. • Because of the cost of these films studios need to produce windfall profits on order to break even. • This puts even greater demand for blockbusters.

  6. Sequels and Prequels • Since a successful film has a built in audience and promotional engine, these prequels, sequels, spinoffs and remakes are almost guaranteed to make money at the box office. • The Dark Knight (Batman), Shrek 2 and Shrek the Third, Star Wars Episode 1 and Episode III, Spiderman 3 are among the Top 20 all time USA Box Office (As of April 2009)

  7. Action • 3 movies on the top 20 also rely on CGI, Artful Animation or Fireballs galore. • Titanic • Finding Nemo • Independence Day (Shrek 2 and 3 also but since they are sequels they don’t count)

  8. Movie Tie-Ins • Hasbro paid Lucas Film nearly 590 million for exclusive toy licensing rights in 1999. A figure that approximated the budget for all three prequels. • Helps promote movies to their target market • The promotional synergy can elevate the national release to the status of a cultural event.

  9. Fans Waiting in Line for Star Wars

  10. Formula for Predicting Hits • Brand Recognition and Popularity • Expensive Computer Generated Graphics • Dumbed down dialogue • Explosive Pyrotechnics • Youth Appeal • Plenty of Merchandising potentional • But in the end.. All hits are flukes

  11. Can’t Miss Movies that did Budget 175 Million Grossed 88 million

  12. You just can’t predict • Cost 160 million • Made 60.7 million • Same Disaster Plot as Titanic (the all-time box office champion(as of April 2009))

  13. Sex Doesn’t Always Sell • Cost 100 Million grossed on 40.2 million

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