Calculating Premium Content: Movies & Sports

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Departemen Ilmu Komunikasi, Fakultas Ilmu Sosial dan Ilmu Politik, Universitas Indonesia

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Calculating Premium Content: Movies & Sports

  1. 1. Manajemen Keuangan Stasiun Televisi Perhitungan Tayangan (movies & sports) Amelia Day Pertemuan Ke-4 28 Februari 2011
  2. 2. Video (facial recognition)
  3. 3. Pay As You Look
  4. 4. Pay As You Look
  5. 5. Like other content business… Antre beli tiket…
  6. 6. Like other content business… Antre beli tiket…
  7. 7. Like other content business… Antre beli tiket…
  8. 8. Like other content business… Antre beli tiket…
  9. 9. Same author… Different players Different medium
  10. 10. Once upon a time…
  11. 13. O  T…
  12. 14. Back to content business <ul><li>Movie business: </li></ul><ul><li>Production  script fees, wages, actor contracts </li></ul><ul><li>Distribution  cost of reel copies, packing & shipment </li></ul><ul><li>Exhibition  promotion costs, cineplex maintenance </li></ul>
  13. 15. Movie business <ul><li>Can the economic success of a film be predicted based on any ex ante observed characteristics? </li></ul><ul><li>(Charles C. Moul, A concise handbook of movie industry economics, Cambridge:2005) </li></ul>before the event &quot;
  14. 16. As movie literature recorded… Star Value
  15. 17. As movie literature recorded… Star Value
  16. 18. Bankable Stars
  17. 19. Number 1: PRODUCTION
  18. 20. Economies of Scale in Production <ul><li>Live performance for 5,000 audience </li></ul><ul><li>Live performance for 3,000 audience </li></ul><ul><li>Live performance for 1,000 audience </li></ul><ul><li>Live performance for 100 audience </li></ul>COST Star Value
  19. 21. Number 2: DISTRIBUTION
  20. 22. Economies of Scale in Distribution <ul><li>Domestic distribution </li></ul><ul><li>Global distribution </li></ul><ul><li>“ Release Window”  (cinema, home video, TV, etc.) at different times vs. “Simultaneous Release” </li></ul><ul><li>Straight-to-video release  Pay TV </li></ul>Star Value
  21. 23. Number 3: EXHIBITION
  22. 24. International Viewers <ul><li>- opened in Finland 13 Oct 2006 (40 copies) </li></ul><ul><li>- debuted at #2, after The Devil Wears Prada </li></ul><ul><li>- opened in China 24 Oct 2006 (150 copies) in 70 cities </li></ul><ul><li>- the movie's international distribution rights have been sold to more than 30 countries </li></ul><ul><li>- in Finland the movie grossed €607,038 with 79,050 tickets sold </li></ul>Jade Warrior is the first Finnish movie to be released in movie theaters in China
  23. 25. natoonline.org
  24. 26. Other Pipes of Int’l Distribution <ul><li>Release Window: </li></ul><ul><li>Theater </li></ul><ul><li>Home viewing (DVD, Video-On-Demand, Download, Television etc.) </li></ul><ul><li>Digital cache: Hulu </li></ul>
  25. 27. williamsager.com
  26. 28. Movie Costs
  27. 29. Lara Croft Tomb Raider: The Cradle of Life <ul><li>Story rights and screenplay: $ 4 million </li></ul><ul><li>Producers: $ 4 million </li></ul><ul><li>Director (Jan de Bont): $ 5 million </li></ul><ul><li>Cast: $17.25 million </li></ul><ul><li>Angelina Jolie: $12 million </li></ul><ul><li>Extras: $ 250,000 </li></ul><ul><li>Other (inc. Angelina's perks): $ 5 million </li></ul><ul><li>Production costs: $67 million </li></ul><ul><li>Set design and construction: $17.8 million </li></ul><ul><li>Visual Effects: $13 million </li></ul><ul><li>Music: $ 3.3 million </li></ul><ul><li>Editing: $ 3 million </li></ul><ul><li>Post Production costs: $ 1.5 million </li></ul><ul><li>Total: $118 million </li></ul>http://en.wikipedia.org/wiki/Film_budgeting
  28. 30. Terminator 3: Rise of the Machines <ul><li>Story rights (Carolco and Gale Anne Hurd): $19.5 million </li></ul><ul><li>Screenplay: $ 5.2 million </li></ul><ul><li>John D. Brancato & Michael Ferris: $ 1 million </li></ul><ul><li>Director (Jonathan Mostow): $ 5 million </li></ul><ul><li>Producers: $10 million </li></ul><ul><li>Cast: $35 million </li></ul><ul><li>Arnold Schwarzenegger: $29.25 million </li></ul><ul><li> (+ 20% gross profits) </li></ul><ul><li>Arnold's perks: $ 1.5 million </li></ul><ul><li>Rest of principal cast: $ 3.85 million </li></ul><ul><li>Extras: $ 450,000 </li></ul><ul><li>Production costs: $58 million </li></ul><ul><li>Post-production costs: $ 4 million </li></ul><ul><li>Visual effects: $20 million </li></ul><ul><li>Music: $ 2 million </li></ul><ul><li>Other costs: $33.6 million </li></ul><ul><li>Total: $187.3 million </li></ul>http://en.wikipedia.org/wiki/Film_budgeting
  29. 31. Movie Gross
  30. 32. Terminator 1, 2, 3, 4 <ul><li>Carolco Pictures (1991) </li></ul><ul><li>Hemdale Film Corporation & Studios: Pacific Western Productions (1984) </li></ul><ul><li>Internationale Medien und Film & C2 Pictures (2003) </li></ul><ul><li>The Halcyon Company (2009) </li></ul><ul><li>Terminator 2: Judgment Day ($519,843,345) </li></ul><ul><li>TOTAL 4 MOVIES: $1,402,938,567 </li></ul><ul><li>AVERAGE PER MOVIE: $ 350,734,642 </li></ul><ul><li>Total costs Terminator 3: $ 187,300,000 </li></ul>http://en.wikipedia.org/wiki/List_of_highest-grossing_films * Canada and U.S. gross only.
  31. 33. natoonline.org natoonline.org
  32. 34. natoonline.org natoonline.org
  33. 35. TV Window
  34. 36. Broadcast Income <ul><li>in-kind donations of time and skills by volunteers (common with community broadcasters) </li></ul><ul><li>direct government payments or operation of public broadcasters </li></ul><ul><li>indirect government payments, such as radio and television licenses </li></ul><ul><li>grants from foundations or business entities </li></ul><ul><li>selling advertising or sponsorships </li></ul><ul><li>public subscription or membership </li></ul>
  35. 37. Blockbuster Package <ul><li>MTV Networks has acquired the broadcast premiere rights to some of 2010's hit theatrical films from NBC Universal Domestic Television Distribution. </li></ul><ul><li>Spike TV, the deal's primary beneficiary, attains rights to &quot;Robin Hood&quot; ($310 million gross worldwide), &quot;Wolfman&quot; ($160 million), and &quot;Green Zone&quot; ($94 million), which target the network's male demographic of Men 18-49. </li></ul><ul><li>Comedy Central procures the rights to the broadcast premiere of &quot;Get Him to the Greek&quot; while MTV acquires &quot;Scott Pilgrim vs. The World.&quot; </li></ul>http://www.prnewswire.com
  36. 38. www.trifectaentertainment.com
  37. 39. www.trifectaentertainment.com
  38. 40. www.trifectaentertainment.com
  39. 41. www.trifectaentertainment.com
  40. 42. www.trifectaentertainment.com
  41. 43. More on broadcast release windows per movie title see schedule samples at: http://www.ascentsyndication.com/programs/Paramount-Elite.aspx
  42. 44. What about Sports Programs?
  43. 45. More on sports rights contract in other countries, see: http://en.wikipedia.org/wiki/Sports_broadcasting_contracts_in_the_Philippines
  44. 46. Money Money Money <ul><li>Money, money, money Must be funny In the rich man's world Money, money, money Always sunny In the rich man's world Aha-ahaaa All the things I could do If I had a little money It's a rich man's world </li></ul>
  45. 47. Next Week: TV Operations

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