The ways that Hollywood loses money is the red meat of news reporting on the industry.
The headlines screamed in early 2012: “Movie attendance falls to 16-year low,” “Hollywood in turmoil as DVD sales drop,” and “John Carter Financial Disaster For Disney.”
What goes largely unreported, however, is that the studio have found other ways to make money. Despite all the hand-wringing in the press over losses, the 6 major studios made record profits. Consider Disney for example. Despite the “John Carter” fiasco, the studio made record profit in fiscal 2012. How is this possible?
The studios have found new ways of making money.
1. They are licensing to new media. Since 2010, there has been an explosive growth in license fees for studio-owned TV series, both still-on-the-air and older ones...