Week Three Notes
Week Three Notes MGT 470
Popular in Entertainment Management Seminar
Popular in Business, management
This 2 page Class Notes was uploaded by Pam Muhart on Monday February 15, 2016. The Class Notes belongs to MGT 470 at Pace University - New York taught by Dean Braun, Dr. Lant in Spring 2016. Since its upload, it has received 20 views. For similar materials see Entertainment Management Seminar in Business, management at Pace University - New York.
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Date Created: 02/15/16
2/10/16 Week Three Notes • What gets people out to the movie theater? o The stars o Genre (action is most popular worldwide) o Timing (Christmas and summer time are the most popular) o Family traditions o MOW (movies of the week) • Evolution of the Movie Industry o Drivers of change: § Technology § Financing/Capital requirements § Laws § Technological/strategic changes in all stages of the industry value chain • Development • Production • Distribution • Exhibition o Development § Consists of the producers, screenwriters, investors (seed money—best to invest early to have time to negotiate better deals) • Book to movie adaptions go through author and agents o Production & Distribution § Consists of the studios (in production and distribution) or the production company § Production costs: • Negative cost components: costs of making a film negative • Above the line: pays for the producers, talent, directors • Below the line: pays the crew (where most of the money goes) § Distribution windowing: time sequence in which a film is released (usually 1-4 months in theaters, then progressively over Pay Per View, On Demand, on DVD, etc.) § “Movies stuck in development”—about 10% get produced 2/10/16 o Film Cash Flow Waterfall § The studio makes deals and collects in the contract whatever percentage they keep § Overhead—movie producers need to recoup what they spent to get a film into “the can” • IMAX o Business model § Old: Selling hardware to project IMAX films in regular theaters § New: Developed technology to change film into IMAX film o Made movies for museums and long-term installations o Created the technology to film and/or modify feature length films o Revenue model § Software & hardware to movie theaters § Adapted revenue model • Free conversion for percentage of box office revenues (now investing in success of the movie) • Still sell software/hardware in some markets because they can’t depend solely on box office sales for every movie o Threats to revenue models: § Increase in R&D § Decrease in adoption by theaters o Competitors to IMAX § 3D (RealD company)—a low cost system tech company § The theater owners developed their own IMAX technology (they can keep all the box office profits) § IMAX has a lot of patents on their technology to control barriers to entry
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