[Upd-discuss] huh: Hollywood copes with digital age

[Mashilamani Sambasivam]

My understanding of the BBC documentary and article is
the following:
* Hollywood studios has been getting 5% returns ***FOR
YEARS***. It is not a recent phenomenon or something.
* Ofcourse with the digital age its profits
are eroding more and more.
* But <quote>they can get more if they put the
money in the bank </quote>. That is if they
let their investment sleep in the bank, the
studios will make more money.

What I was getting at is NOT that they have no
way to reduce costs or increase profits
in digital age.

What I was getting at is that there are 
more motives to making 1 million per minute films
than meets the eye. That is why they were willing
to make less profits than they would if they
let their money sleep in the bank.

This will become much more obvious in the future 
fileswapping age if the studios' profits drop even
more
and they continue with same vigour.

Masi


--- M Featherston <mlfeatherston@gmail.com> wrote:

> That's a good question. Movie studios obviously need
> to make money,
> just like any other business, but their chosen line
> of business is
> somewhat unique.
> 
> So, if 4 out of ten movies make money, everything is
> ok for film
> companies. In baseball, you are considered a
> successful hitter if you
> succeed 3 out of 10 times.
> 
> I think the movies makers, the old guard I mean,
> will probably do
> pretty much the same thing that they have done for
> decades. I think
> market forces beyond their control may eventually
> change them, but it
> is going to have to be something very dramatic.
> Plus, it makes sense
> that film producers look at other way to make money
> off of films.
> 
> MLF
> 
> On 6/2/06, Mashilamani Sambasivam
> <mashi3981@yahoo.com> wrote:
> > On how hollywood is coping with filesharing:
> >
>
http://news.bbc.co.uk/1/hi/programmes/click_online/5019472.stm
> >
> > Another interesting programme was:
> >
>
http://www.bbc.co.uk/pressoffice/pressreleases/stories/2002/04_april/22/hollywoodinc.shtml
> >
> > Extracts from the programme:
> > <quote>
> > *A film costs tens to hundreds of millions of
> dollars.
> >
> > *For a studio, as an investment, 6 out of 10 films
> > fail.
> > *For a studio, as an investment, they get 5%
> return.
> > They can get more if they put the money in the
> bank.
> > </quote>
> >
> > what I am getting at is why do the studios put so
> much
> > effort (0.1 to 1 million dollars per minute of
> film
> > footage), time and money if the studios can get
> much
> > better return on investment elsewhere. The obvious
> > is deeply influencing culture. But apart from
> that,
> > what is so important about movies?
> >
> > anyone have any thoughts on any of the above?
> >
> > Masi
> >
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