Stunning news from industry research company SNL Kagan. As money gets tight in Hollywood and lay-offs are reported on a regular basis, contrary to the studio’s solution of cutting back, Kagan’s say no, make more films, spend more money! Are they crazy??
Well, maybe not. They looked at 611 films released by the majors between 2004 and 2008 and broke them down into genres, – action, comedy drama etc. then they reassembled them as slates of five, ten and fifteen films. They then anaylsed the mix of each slate in terms of probability of making big at the box, where action was high and drama low.
The result was, the bigger the slate, the more likelihood for profit. Where the five film slate made a loss of $94m, the fifteen film slate made a staggering $466.4m profit!
This was over a 12 year period of exploitation and included the usual revenue streams.
So the word is, make more to make more. Simple!
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