> Between 2007 and 2011, pre-tax profits of the five studios controlled by large media conglomerates (Disney, Universal, Paramount, Twentieth Century Fox and Warner Bros) fell by around 40%, says Benjamin Swinburne of Morgan Stanley.
Mass-market luxury industry takes hit during largest recession since Great Depression. News at 11.
>In 2011 American cinemas sold 1.28 billion tickets, the smallest number since 1995. Last year, ticket sales rose back to 1.36 billion and box-office revenues to a record $10.8 billion
So the year over year volatility is in the single digits and following the economic recovery they're back to making record profits.
It seems like the only point the article makes is that that TV is doing better than film right now. But that isn't "movies are doomed," just "TV is doing really well."
>A move from analogue to digital film enabled perfectionist directors to shoot more takes and touch them up afterward, using up expensive production and editing time. Studios have also started to make more “tent pole” films: big releases that can support the bottom line like a pole holds up a tent. These typically rely on expensive special effects, rather than compelling scripts, to attract a global audience.
Jevon's effect in action. The thing is, that's not actually a problem: If you're making more profit from doing that than it costs to do it, it's sustainable. If you're not, why are you doing it? Stop it and go back to creating a larger number of less expensive films based on compelling scripts rather than special effects. It seems to be what people are asking for anyway. You can't simultaneously expect to be taken seriously in complaining that what you're doing isn't working and refuse to change what you're doing.
They keep talking about John Carter as a failure. I saw it. It wasn't great. And the reason wasn't bad acting or bad special effects, it was that it had a mediocre script. So yeah, try hiring some better writers next time. They apparently cost less than special effects anyway.
>Between 2006 and 2012, the six big studios also cut the number of films they made by 14-54%, according to Nomura.
And then they wonder why they're not doing as well as they want to.
>And they started to pay actors and directors far less.
It's about time. Hard to find sympathy for "we're not making enough money" when you're still paying eight figure compensation to individuals.