Hollywood studios in midst of their own horror show
October 6, 2009
John Horn, Ben Fritz and Rachel Abramowitz
Copyright © 2009, The Los Angeles Times
{excerpts}
The recent firings and hirings of studio executives at Disney, Universal and elsewhere point to a widespread corporate panic amid sharp declines in DVD sales.
... as DVD sales have collapsed by as much as 25% at some studios, access to outside financing has vanished and production and marketing costs remain sky-high, media companies are cracking under all the pressure.
As the lineup of newly elevated studio executives scramble for solutions, expect an even greater emphasis on so-called "branded entertainment": sequels and movies based on toys, old television shows and other familiar themes. ... There also will likely be far fewer adult dramas and less reliance on movie stars -- many of whom can no longer draw ticket buyers, and are seeing their guaranteed salaries slashed.
"They still haven't found a new business model to replace the old one."
For years, DVD sales, coupled with the growth in international markets, compensated for box office losers.
But as the global economy tanked, so did DVD income.
At the same time, foreign monopolies in paid television have driven down the formerly generous license fees paid to American studios for cable and satellite reruns, while increasingly popular local language productions ... have cut into the international box-office returns for U.S. productions.
As profits vanish, new capital has become as unattainable as the best picture Oscar.
When times were flush, the studios spent like sailors on shore leave, handing out lavish producer deals, flying private jets, adding millions in overhead (including their own compensation) and pouring fortunes into poorly executed projects ...
Thanks to Kidsis for the link.
This just highlights the problems in Hollywood. A-list actors got paid too much. Producers got greedy. Studios chucked money at bad projects because they had too much money available. Studios depended on DVDs to make up for losses on bad projects. We trained people in studios in other countries to make 'American-style' movies, who now make them in their own languages. Their financing has dried up, probably due to referring to investors as "suckers".
What's so sad is that I could make movies for the rest of my life and still make money on most, if not all, of them. Hollywood is clueless as to what really is selling the movies.
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Tuesday, October 6, 2009
Saturday, March 29, 2008
Part IV - Book Review - The Big Picture by Edward Jay Epstein
You might want to begin with my first, second and third posts on The Big Picture : The New Logic of Money and Power in Hollywood by Edward Jay Epstein.
This is on the Social Logic of Hollywood.
Chapter 22 About the difference between only making movies for money, and those for social reasons.
Chapter 23 Hollywood community vs. the outsiders
Chapter 24 about the Elites of Hollywood (categorically)
(Stars, Directors, Agents, Writers, Producers, Execs, & Gurus)
Chapter 25 Reasons for work
Chapter 26 Hollywood Deceptions (Psuedoheroes, Psuedorealism, Psuedoyouth, Psuedoacting, Psuedopraise, Psuedo credits, & Psuedonews)
Political Logic of Hollywood
Chapter 27 Shaping the views of people watching
Chapter 28 Politics & social pressure groups and Hollywood
Chapter 29 Politics that affect Hollywood globally.
Epilogue The Future of Hollywood and movies.
I'm off to the library to get the book I read years ago that just arrived by inter-library loan, and there's another few books that I'll probably read next week, plus maybe a DVD or two.
This is on the Social Logic of Hollywood.
Chapter 22 About the difference between only making movies for money, and those for social reasons.
Chapter 23 Hollywood community vs. the outsiders
Chapter 24 about the Elites of Hollywood (categorically)
(Stars, Directors, Agents, Writers, Producers, Execs, & Gurus)
Chapter 25 Reasons for work
Chapter 26 Hollywood Deceptions (Psuedoheroes, Psuedorealism, Psuedoyouth, Psuedoacting, Psuedopraise, Psuedo credits, & Psuedonews)
Political Logic of Hollywood
Chapter 27 Shaping the views of people watching
Chapter 28 Politics & social pressure groups and Hollywood
Chapter 29 Politics that affect Hollywood globally.
Epilogue The Future of Hollywood and movies.
I'm off to the library to get the book I read years ago that just arrived by inter-library loan, and there's another few books that I'll probably read next week, plus maybe a DVD or two.
Tuesday, March 11, 2008
Part III - Book Review - The Big Picture by Edward Jay Epstein
You might want to begin with my first and second post on The Big Picture : The New Logic of Money and Power in Hollywood by Edward Jay Epstein.
We start with Production aspects.
Chapter 6 - details Developmental Hell.
Chapter 7 covers getting the green light.
Chapter 8 is a short synopsis of pre-production work, post-greenlight.
Chapter 9 is a synopsis of production shooting.
Chapter 10 is a synopsis on CGI and sound in post.
Chapter 11 covers editing and the costs of getting it caught up in a clearing house.
We move onto creating (or finding) the audience.
Chapter 12 covers the basis to create an awareness of a movie.
Chapter 13 covers the publicity and marketing campaign and costs for a film.
Chapter 14 covers theatrical release dates.
On to the economics of hollywood.
Chapter 15 deals with how theaters make (or lose) money, ratings, length of stay for a film, etc.
Chapter 16 deals with foreign market distribution and advertising.
Chapter 17 covers the the home video revolution (in all formats).
Chapter 18 covers television distribution.
Chapter 19 covers basic merchandising.
Chapter 20 covers why violence, or nudity may be added or subtracted to fit the audience, regardless of the story.
Chapter 21 talks about winning rough formulaes, especially those in relation to the billion-dollar-earning movies.
That's about it for now, tune in for part IV.
We start with Production aspects.
Chapter 6 - details Developmental Hell.
Chapter 7 covers getting the green light.
Chapter 8 is a short synopsis of pre-production work, post-greenlight.
Chapter 9 is a synopsis of production shooting.
Chapter 10 is a synopsis on CGI and sound in post.
Chapter 11 covers editing and the costs of getting it caught up in a clearing house.
We move onto creating (or finding) the audience.
Chapter 12 covers the basis to create an awareness of a movie.
Chapter 13 covers the publicity and marketing campaign and costs for a film.
Chapter 14 covers theatrical release dates.
On to the economics of hollywood.
Chapter 15 deals with how theaters make (or lose) money, ratings, length of stay for a film, etc.
Chapter 16 deals with foreign market distribution and advertising.
Chapter 17 covers the the home video revolution (in all formats).
Chapter 18 covers television distribution.
Chapter 19 covers basic merchandising.
Chapter 20 covers why violence, or nudity may be added or subtracted to fit the audience, regardless of the story.
Chapter 21 talks about winning rough formulaes, especially those in relation to the billion-dollar-earning movies.
That's about it for now, tune in for part IV.
Sunday, March 9, 2008
Part II - Book Review - The Big Picture by Edward Jay Epstein
In my first post on The Big Picture : The New Logic of Money and Power in Hollywood by Edward Jay Epstein, The first chapter covered 60% of the old system and 40% of the new system.
Then it moves into Part I: The New System which consists of chapters 2, 3, 4, & 5. Chapter two is about those who created the new Hollywood entertainment conglomerates and how they did it. Chapter three is on the problems with moving product into foreign markets, and how they overcame them. Chapter four covers the "Big Six" in entertainment. Detouring around problems, and creating the various axis of controlling the market. Chapter five covers, in a nutshell, how they make money while rarely making a profit.
It's truly interesting stuff, and while I can understand their wish not to pay the gluttonous governments of the world their over-taxation beyond the minimum due. It also serves to fill their greedy pockets. Well, if they avoid paying most of the taxes, the government raises business rates across the board to compensate, thus further burdening other businesses often most detrimentally, small businesses. Second it provides that they can shelter themselves from paying much in the way of back-end to anyone. Now I'm not against anyone making a profit, nor even a big profit. However, when it doesn't help your workers who are helping make that profit, or worse, you screw them to make your profit, then you are really just a greedy bastard.
Part of this can be stated because they are publicly traded companies & that their bonus' are paid in stock. Therefore rather than concentrating on dividends, they focus on raising stock price. Of course, the fact that the government always wants more in taxes, rather than coming up with ways to reduce spending, means that they are at least as much of the problems as the companies themselves.
Bah, anyways, 5 chapters down, 24 to go, plus epilogue, notes, acknowledgements.
I'm going to I.L.L. Planning the Low-Budget Film by Robert Latham Brown on Tuesday and probably be able to pick it up later in the week. If you haven't heard of it or him, I'll sum it up. He is a well known line-producer who doesn't go over budget. His book, contrary to it's title, covers budgeting any movie, regardless of budget, and is basically the industry bible as far as books on the subject go.
Then it moves into Part I: The New System which consists of chapters 2, 3, 4, & 5. Chapter two is about those who created the new Hollywood entertainment conglomerates and how they did it. Chapter three is on the problems with moving product into foreign markets, and how they overcame them. Chapter four covers the "Big Six" in entertainment. Detouring around problems, and creating the various axis of controlling the market. Chapter five covers, in a nutshell, how they make money while rarely making a profit.
It's truly interesting stuff, and while I can understand their wish not to pay the gluttonous governments of the world their over-taxation beyond the minimum due. It also serves to fill their greedy pockets. Well, if they avoid paying most of the taxes, the government raises business rates across the board to compensate, thus further burdening other businesses often most detrimentally, small businesses. Second it provides that they can shelter themselves from paying much in the way of back-end to anyone. Now I'm not against anyone making a profit, nor even a big profit. However, when it doesn't help your workers who are helping make that profit, or worse, you screw them to make your profit, then you are really just a greedy bastard.
Part of this can be stated because they are publicly traded companies & that their bonus' are paid in stock. Therefore rather than concentrating on dividends, they focus on raising stock price. Of course, the fact that the government always wants more in taxes, rather than coming up with ways to reduce spending, means that they are at least as much of the problems as the companies themselves.
Bah, anyways, 5 chapters down, 24 to go, plus epilogue, notes, acknowledgements.
I'm going to I.L.L. Planning the Low-Budget Film by Robert Latham Brown on Tuesday and probably be able to pick it up later in the week. If you haven't heard of it or him, I'll sum it up. He is a well known line-producer who doesn't go over budget. His book, contrary to it's title, covers budgeting any movie, regardless of budget, and is basically the industry bible as far as books on the subject go.
