Learn more about movies with this collection
Essential product management skills
How to work effectively with cross-functional teams
How to identify and prioritize customer needs
The cost to make a movie has little or no correlation to its profitability.
Movies cost so much because of the financial concept known as Parkinson's Law, which means film budgets will continually expand to use the capital available, regardless if the extra cash results in a better product.
9
279 reads
During the mid-2000s economic boom, Wall Street hedge funds partnered with investment banks to push $15 billion into Hollywood films. A new payment structure gave outside investors a slice of a film's total profits over its product's lifetime, such as box office sales, video on demand, DVDs, TV licensing, in-flight movies, product placement and toy licensing.
This meant that studios could spend less of their own funds while making more expensive movies.
6
93 reads
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