MBA Geek

$41 million dollars a week. Now that’s a whopping amount of money by any stretch of the imagination. I was thinking about the movie industry in relation to pirated movies a couple of days ago and the thoughts I was having is around the remuneration that all the people invovled in the creation of media are due. Sure, it takes a substantial amount of effort to produce a movie like this, but once the costs are covered, who reaps the rewards?

The answer is the investors behind the movie. They are the people taking the risk that the movie might be a bust, and therefore deserving of the massive rewards we’re seeing in this case. But one mustn’t forget all the other movies that are produced that never make it. The truth is that it’s not as simple as retailing ballet shoes or Ferrari parts, the market profile and risk that make part of the movie market are quite different to other markets.