The American community has long had an attraction to movies. With 462 new movies released, 8.4 billion dollars in domestic box-office sales, and 1.5 billion tickets sold, 2001 was a record year (MPAA). Although total movie production costs for the studios that are members of the MPAA1 appear to have leveled around $50 million per movie in the last few years, marketing costs are still growing.
Shugan looks at box office performance based on the team that contributes to the creation of the movie that is writers, directors, actors. His goal was to help studios forecast box office sales early on during the production process a time at which the conclude product is not available, but the track record of the production team is known. (Shugan)
Even as studios are still able to buy large first-week audiences, they are finding that internet-fueled word of mouth is making it increasingly hard for them to keep sales momentum going for mere average and bad movies. The most extreme example of this was The Hulk, where ticket sales dropped 70 percent in the second week. A good example is an Internet. Internet power as an instant communications medium. The studios will benefit to learn that the same instant communications excellence can be used in a supportive fashion if they can bother to learn how to connect it.
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