"We are all made of stars"

- Moby

A little while back I floated the idea that stars are beginning to lose their power to pull in a guaranteed audience. Apparently, I'm not the only person questioning the foundational principles of Hollywood business models. The concept of "content is king" is penetrating every aspect of the entertainment industry.

A story released by Reuters, "Hollywood rethinks use of A-list actors" was published on Friday. In it, author Alex Dobuzinskis cites the success of lower budget films like The Hangover (35M) and District 9 (30M) and the relative failure of Surrogates, Funny People, Land of the Lost, Imagine That, Duplicity and A Christmas Carol - most of which I mentioned in my previous post.

What this story does explore, that I didn't include in my post, is the outstanding success of Twilight and the expected success of New Moon. The Twilight Saga has taken complete unknowns, a modest budget, and strong storytelling to create a global franchise of attention and profit. The box-office numbers aren't quite as big as Harry Potter films, but neither are the budgets. Three or four Twilights could be made for the budget of a single Harry Potter and the Philosopher's Stone, and that's really the point. Studios and production companies should be smarter with their funds and their risks. The old adage "Don't put all your eggs in one basket" applies just as well to the millions of dollars involved in film production. When a $30 million film has as strong box office potential as a $150 million film wouldn't you rather have the 5 chances of striking film gold presented by the cheaper films?

The global recession is tightening budgets across all industries; plumbers and electricians aren't the only people being asked to reduce their salaries. The salaries of two A-list stars would pay for the entire production of District 9. Producers are reading the writing on the bottom line in black and white, and all too often in red. But as the economy recovers, the film industry faces greater challenges and more permanent changes. The film industry has largely been "recession proof", and this economic dip is no exception. Global box-office has not dwindled significantly over the last year. According to Box Office Mojo weekend reports, 5 of the 10 previous weekends had stronger income than previous year's same weekends. Business isn't booming, but it's not going terribly. But the major studios don't survive based on film revenues along any longer. Now they are pieces in larger corporate conglomerates that also rely on television, music, print, retail, construction and service industries.

More, and cheaper, productions will mean more work for writers and crew - but will lead to smaller paydays for top talent. Actors willing and able to adapt to changes in the marketplace will survive and continue working in the future. Those unable to sacrifice their upfront windfalls will be left behind by the changing conditions in our industry.

"We are all made of stars"

- Moby

A little while back I floated the idea that stars are beginning to lose their power to pull in a guaranteed audience. Apparently, I'm not the only person questioning the foundational principles of Hollywood business models. The concept of "content is king" is penetrating every aspect of the entertainment industry.

A story released by Reuters, "Hollywood rethinks use of A-list actors" was published on Friday. In it, author Alex Dobuzinskis cites the success of lower budget films like The Hangover (35M) and District 9 (30M) and the relative failure of Surrogates, Funny People, Land of the Lost, Imagine That, Duplicity and A Christmas Carol - most of which I mentioned in my previous post.

What this story does explore, that I didn't include in my post, is the outstanding success of Twilight and the expected success of New Moon. The Twilight Saga has taken complete unknowns, a modest budget, and strong storytelling to create a global franchise of attention and profit. The box-office numbers aren't quite as big as Harry Potter films, but neither are the budgets. Three or four Twilights could be made for the budget of a single Harry Potter and the Philosopher's Stone, and that's really the point. Studios and production companies should be smarter with their funds and their risks. The old adage "Don't put all your eggs in one basket" applies just as well to the millions of dollars involved in film production. When a $30 million film has as strong box office potential as a $150 million film wouldn't you rather have the 5 chances of striking film gold presented by the cheaper films?

The global recession is tightening budgets across all industries; plumbers and electricians aren't the only people being asked to reduce their salaries. The salaries of two A-list stars would pay for the entire production of District 9. Producers are reading the writing on the bottom line in black and white, and all too often in red. But as the economy recovers, the film industry faces greater challenges and more permanent changes. The film industry has largely been "recession proof", and this economic dip is no exception. Global box-office has not dwindled significantly over the last year. According to Box Office Mojo weekend reports, 5 of the 10 previous weekends had stronger income than previous year's same weekends. Business isn't booming, but it's not going terribly. But the major studios don't survive based on film revenues along any longer. Now they are pieces in larger corporate conglomerates that also rely on television, music, print, retail, construction and service industries.

More, and cheaper, productions will mean more work for writers and crew - but will lead to smaller paydays for top talent. Actors willing and able to adapt to changes in the marketplace will survive and continue working in the future. Those unable to sacrifice their upfront windfalls will be left behind by the changing conditions in our industry.