Question: What are some current events in your industry? What is the impact of these events on the industry?
Summary: "LOS ANGELES (AP) — 'Paranormal Activity 3' didn't just go bump in the night. It made a ton of noise at the box office with a record-setting, $54 million opening.The third film in Paramount Pictures' low-budget fright franchise, which was No. 1 at the box office, had the biggest debut ever for a horror movie, according to Sunday studio estimates. It broke the previous record part two set a year ago with $40.7 million. It's also the biggest opening ever for an October release, topping the $50.35 million Paramount's "Jackass 3D" made last year." According to this article and Don Harris - Paramount's president of distribution - the third movie was the best out of all three, and that is why "this installment did so well."
Analysis: Obviously Paramount has profited from this movie, but besides Paramount the movie theatres did as well. With so many people coming in, imagine how much soda, popcorn and snacks were sold that day. Companies like Blockbuster, Netflix and Hulu are going to make some profit of that film, when it's going to come out on DVD. Newspapers and Magazines are going to profit from that movie because they're publishing movie reviews and different articles about Paranormal Activity 3 and that's what people want to read about "today"; so possibly more people are going to buy newspapers and magazines that contain at least some info about the movie in the following week or two, than they used to before. So overall, I think we can say that the success of the movie 'Paranormal Activity 3' has (or will have) a great impact on the media industry in the future, possibly even near future.
I think you make a very good point here about the fact that media doesn't exist in a vacuum. The events that go on in the world have a big impact on the revenues of media companies. While it is true that there is a lot of influence between the different branches of media and entertainment (like in this example where a new movie may increase newspaper sales), it is also important to note that events outside of the industry influence the shifts in consumer needs and preferences. These can range from minor events that change sales for a week or so, to major changes that influence the way the market operates.
ReplyDeleteYou did a nice job of identifying many stakeholders in the industry - if a movie does well, many related people make a profit.
ReplyDeleteI think it should be emphasized, though, that this cycle will continue again. With Paramount Pictures reaching massive gains, they have more money to put into more movies, which then benefits theaters, Netflix, newspapers, and the like again and again.