The Iron Yuppie
Thought[ful|less] coverage of news, politics, technology and anything else that catches my fancy.Thursday, January 27, 2005
G-Rated Movies make more money
Sometimes, I don't understand what businesses are doing. There are a lot of recent studies that highlighted how simple statistics and modeling allowed businesses to be far more successful (the Oakland A's/Red Sox are two recent examples); I'm curious as to why more organizations are not going through this kind of process. To the point, I saw this same article in Fortune and Tigerhawk captures the essence quite well. G-rated movies make more money, why wouldn't movie studios focus on them?
The commentor on the same page highlights the real problem... is the situation that there are very few G-rated movies so they all get high returns but make up a lower percentage of total returns (thereby indicating the market for G-rated movies are saturated) or is there still room for more? You'd think that this would be what market forces would be perfect at finding out. Unfortunately, with so little flexibility in distribution, we do not have a true market economy for that end of the entertainment industry... yet!
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