Abstract
Movie industry sources and academics claim that film production is a risky business in which revenues and profits accrue to a few successful releases, most of which happen to be big-budget productions. At the same time, Hollywood produces hundreds of low-budget movies annually that seemingly have low chances of success from the outset. This is the paradox that the current research seeks to explore. We hypothesize how key elements of small films' business strategy serve to help low-budget film ventures to achieve profitability. We then draw on rich data assembled specifically for this research to explore the hypothesized cost-side and revenue-side inputs and also to compare the profitability of low-budget and big-budget film ventures. Contrary to the prevailing wisdom, we find that, on average, both big-budget and low-budget films generate a profit, when all major sources of revenue and cost are considered.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
