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by sriramk 4957 days ago
Is this really true? If you look at the top grossing movies, they're all studio blockbuster vehicles. The cost of star salaries, huge marketing splashes, etc are still as bad as ever.

I don't see any evidence that the COGs for producing the head revenue generators are any lower than what it was, say, 5 years ago.
2 comments
ebrenes 4955 days ago
To add to what jasonwatkinspdx has said already, it seems to me that this follows the typical pattern of disruption. First you'll see the bottom markets being let go by the big studios and you'll start seeing other independent bodies picking up those lower markets. Until finally the big studios only make up the top segments, if anything the polarization seems to indicate just this type of shift.

I think you're also seeing some breakthrough into the middle areas where players such as HBO are able to compete with big block buster movies in terms of mind share. Series like Game of Thrones for example opted to be produced in the "lower echelons" instead of being fit into block buster movies. In a way it seems obvious, the material fits better in a series format, etc... but the fact that it is possible should make it clear that 50-60 million budget can compete and in some cases excel that which is produced by a multiple hundred million dollar blockbuster.

That to me is a significant change, hopefully one of many to come.

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jasonwatkinspdx 4957 days ago
You can't expect to understand a broad shift if you're only looking at the top grossing movies. That's like predicting the US economy by only looking at Bill G and Warren Buffet's asset sheets.

The Crank movies are a good example of something you couldn't really do 10 years ago. They were filmed on budgets with 10mm to 20mm. Typically a movie involving so many stunts would be far more expensive. Compare to say the Fast and Furious movies which have budgets in the 100mm range.

And while the current financial picture for the studios is hit driven, that's largely because of the high minimum cost to get a production done. As production costs fall films don't have to sell as well to be profitable, creating more of a long tail to the market.

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