Title: "Risk Management in the Motion Picture Industry" Author: Arthur De Vany (University of California, Irvine) Published in: Journal of Cultural Economics (Also expanded in his book Hollywood Economics)
If you are less interested in economics/statistics and more interested in corporate strategy and production management, I recommend: Title: "Risk Management in the Motion Picture Industry"
Paper: "Disney, Netflix, and the Battle for the Living Room" Source: Harvard Business School Case Study (Prof. Anita Elberse) If you are less interested in economics/statistics and
Why it's useful:
Verdict: Read Arthur De Vany to understand how productions get made and funded. Read Anita Elberse to understand how studios compete and survive in the streaming era. Verdict: Read Arthur De Vany to understand how
The paper demonstrates that the film industry does not follow a normal statistical curve (bell curve).
Most people think studios are in the business of "making movies." This paper proves they are actually in the business of managing risk. It is useful because it explains the "why" behind every decision a studio makes—from why they make sequels to why they pay actors astronomical sums.
