I. Profitable prospects of buying movie sequel rights Arundel Partners came up with the innovative idea of purchasing the sequel rights for the entire production of films produced by one or more major U.S. movie studios before the first film is even under production. Then the company could take advantage of the special characteristics of the movie industry. For example, Arundel Partners could track the box office performance of the first movie after it was released for a few weeks in theaters and could then predict if the sequel would be profitable or risky--depending on how much moviegoers liked the original. In other words, Arundel Partners structured their investment as a call option; the purchase of the sequel rights allows the
• What are the primary advantages and disadvantages of the approach you took to valuing the rights? What further assistance or data would you require to refine your estimate of the sequel rights' value? • What problems or disagreements would you expect Arundel and a major studio to encounter in the course of a relationship like that described in the case? What contractual terms and provisions should Arundel insist
While new policies are important for Fruitvale’s long-run viability, they are more risky (Exhibit 1) and require more labor to process (Exhibit 2a). Contribution per RERUN is higher than per RUN. Incentives to underwriters for writing new policies may be contributing to the misperception of the greater value of new policies (Exhibit 2b). 2. Renewals are released the day before the anniversary date, requiring staff to respond as though they were unpredictable, rather than known for an entire year.
* MGM has external factors and one of them is also competition, they started the innovation in order to compete. Manager has all the control over the innovation. Pressure for change * #1 Caesars has pressure for change due to bankruptcy and in other to reduce cost and the external factors for it could be the competition and bad management or CEO bad
To what extent is the success of a media product dependent upon effective distribution and marketing? Warner brothers is a vertically and horizontally integrated media conglomerate owning companies in production, distribution and exhibition. Warp films is a small, independent English film company, owning warp records, a small music company. The successes of media products are relative to their aims. Profit is the most common aim as investors want returns on their investment but there is a large difference in the budget of a film from a large media conglomerate and a small independent film company like warp and so they expect different levels of revenue from the films..
Hollywood vs. History Hollywood often uses American History to make money. Our country is still in its infancy compared to the broad majority of countries around the world. Many movies that are claimed to be “based on a true story” are typically inaccurate, containing dramatic, violent, comedic, or horrific mediums, along with names being changed, details of the actual event augmented, and locations being changed. The inaccurate information that is incorporated within the movie is to obtain a goal to produce big box office revenue and to ensure people will buy tickets and merchandise. However, if changing information to help in the aide to produce a box office hit is necessary, its typically stated within the opening credits or ending credits of the movie.
Now, the main concern rests upon the decision of open this new market channel that actually was once active in 1920 but since then Goodyear has worked all the way independently. The reconsideration is now seen as a likely option but it entails also some deep concerns about the future of franchised dealers arguing that this agreement will only undermine their sales and in order to compensate for this they will be forced to start selling multiple brands that offer customers all the benefits they want even if it’s not from Goodyear. Alternatives There are two alternatives for this process or either the company decides to start selling in company of mass merchandisers, retails stores, in this case, accepting the offer from Sears. Or, the company decides to stay idle and keep losing revenues from these previously mentioned stores due to loyalty of its customers and availability of other brands in their stores. First Alternative Going alone with consistent market share loss of 32% according to Kerin and Peterson (2013, p.604) it is important for our posterior analysis that this was equal to a loss of 4.9 million units not sold worldwide.
The shows that are produced by the company costs money, the company has to put out popular shows so they earn ad sales to help keep the business afloat. At the same time, the lifestyle shows have to be placed cable systems so that people can view the shows and the ads associated with them. It would not be financially responsible to produce a show that cause the company to lost money in no ad sales and lost subscribers. In terms of human environment, the company needs to hire people that will contribute to their goals. Depending on the need, companies want to hire knowledgeable people.
As we know, people don’t like changes, especially the ones they can’t predict. If they feel uncomfortable after the acquisition, they will leave the company. High employee turnover rate will lead to vest cost of training expense and reverse effect of working environment. 1 BADM 590 Home Assignment 2 2.Return on investment Yue Wang Cisco had the acquired company’s products appear on its price list on the day the deal closed so that Cisco’s sales force could immediately begin to sell the new products. I find it is a great method to raise the acquired company’s sales.
In the early days of the film industry, narrative films were only one to two minutes long. Before then, all longer-production films were made simply for evidence of certain events or advertising. Audiences in the 1800’s were attracted to films not because of their narrative content but instead to their apparent visual effects. Because of this low interest in the film industry, funding was made possible by product placement of recognizable brand names. As Leon Gurevitch explains in The Cinemas of Transactions, early cinematic attractions share more in common with the adverts that emerged from the television industry in the 1950’s than they do with commercial films.