The strange economics of the movie business and what it means for its future

July 1, 2012

The New York Times has an interesting article that examines the problematic economics of the movie industry and why the business doesn’t appeal to innovators. Here’s an excerpt:

For the cost of “Men in Black 3,” for instance, the studio could have become one of the world’s largest venture-capital funds, thereby owning a piece of hundreds of promising start-ups. Instead, it purchased the rights to a piece of intellectual property, paid a fortune for a big star and has no definitive idea why its movie didn’t make a huge profit. Why is anyone in the film industry?

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