locutus12 said:
wrong, they already retail at that price in america, canada, and several other countrys. but here in england which is what i am concearned with, we pay more and for no good reason. as far as getting wrid of the excess crap, most people just want the film, they dont want tassles and tie backs, expensive baubles and trinkets, just the film, nothing else. this then cuts out a nice chunk of post production costs.
It's not wrong. I live in the US, and I see retail pricing, and I see discounting after premium pricing after discounts start to set in.
Cutting out the crap would not make much difference to overall costs, because the crap is a very small part of costs. I'm an investor. I've had a lot of money in films, and I DO know what I'm talking about.
I agree most people don't want a lot of extras. I certainly don't. But, firstly, some people do, and secondly, it doesn't cost much to add.
locutus12 said:
also they could release the film on a proper site endorsed by the movie industry to download for a fee of £5 to £7. id gladly pay to download it and i bet you a large chunk of the 16 million people on broadband in the U.K. would too...
Yes, they could. But it's not going to happen until the film has been through the premium route, because so much of the recovery of cost comes from the premium route. Also, part of that revenue process involves segmenting markets, and if you allow downloads, you either have to restrict site access geographically, or you mess up that segmenting. Maybe some brave company will test your distribution method, and maybe it'll be a raging success, in which case every will jump on it. In the meantime, who is going to risk making a huge loss by trying it? Not me.
locutus12 said:
what you mean is if they dont make millions the actors will no longer be able to be paid several million a pop for a film. What is the most expensive aspect of any large business? its wages.
Yes, A-list actors get paid very handsomely indeed, but they also bring in audiences and ell DVDs. They are marketable, and they know it. They put bums on seats and they sell DVDs
because they are in the movie. If they lose that marketability, they lose their giant pay checks too. So unless you can think of a way to break that cycle, we're all stuck with it. If one studio refuses to pay market rate, they go to another one that will pay market rate. However much we might all wish it wasn't the case, it is the case.
locutus12 said:
i was a finance officer for the largest HIV charity in europe, i think i can understand simple economics.
Then you should understand the concept of profit taking at the margin. Which is how the film industry works.
I'm a chartered accountant with 40 years business experience and have been running my own businesses for 20 of them. I've been an investor in movie production for 12 years and I STILL don't fully understand movie accounting. That's why I pay an expert. If you haven't been fully involved with movie accounts, then you really have no idea of just how arcane they are. Believe me, it's a minefield. And before anyone comments on how I can invest in movies without understanding movie accounting, it's simple - I have lawyers that know how to write contracts and they DO understand movie accounting.
locutus12 said:
your just not looking at the distribution methods available, they can save millions on packaging, advertising, actors wage packets and they can adapt to the new media distribution hub of the global economy, the internet. but they dont want to, its that simple. they dont want to cut the actors wages, they dont want to use more economical packaging methods, and they sure as hell dont want to start full scale selling of DVD films on the internet.
It's not about costs. It's about profits. The methods that are used are used because they are tired and tested. Distribution via internet has been looked at, and may come. But up until very recently, the infrastructure simply would not support large-scale high-quality transmission, and I rather doubt it would now. Then there's the DRM issues, copy protection and so on. Maybe it'll happen, and maybe some studios will take a flyer or two. But don't hold your breath.
You seem to be making a common mistake ... that of thinking that just because you'd pay a low price for a heavily curtailed product, that everybody else would. You're missing the point totally. At the price level you're talking about, the profit margin is dramatically reduced. If you halve the price, you may generate the same turnover if sales double but you don't generate the same profit. And, unless you know the cost structure, you can't even predict whether profits go up or down for any particular combination of price and sales volume. The profit models for a dynamically-priced item like a film release are VERY complex, because profits change very quickly in such a market. And if you forego those premium sales, you forego exactly that part of the process that pays most of the advance costs. At least in the immediate future, you may get low budget movies released like that, but it's not going to happen with Hollywood blockbusters.
locutus12 said:
theres talk of them releasing the DVD on the same day of the cinema release in order to cash in on media hype (many of you may have noticed DVD releases are getting closer and closer to the cinema release anyway), many influencial people in the industry are pushing hard for it, which if passed (and i hope it is) is really gonna put a nice dent in your "released in a controlled way" methodology.
It's not "my" way, it's the way the movie industry works. You can believe me or not, but it's not some abstract theory of mine. It's how things are.