Movie Profits Driven By Stories And Directors, Not Stars, Academics Conclude

Movie making is often an insane business. But moguls turn out to be pretty rational about it according to a chapter in an upcoming economics text and a recent article in an academic journal. Researchers say that studios wisely bet on stories and directors.┬áStar worship “is all but a myth,” writes S. Abraham Ravid — a finance professor at Yeshiva University — in The Economics Of Creativity, to be published next month. “Stars can still sell magazines, but not movies.” Why do studios pay big bucks for Academy Award-winners? It’s part of a strategy, along with co-financing, to reduce the risk of making big-budget films — especially R-rated ones, which represent the biggest gambles. Stars should draw at least some fans, even to a stinker of a movie, the theory goes. “In an industry where a big failure is much more dreaded than a big success is wished for, insurance is worth its weight in gold, or in eight-figure salaries.” (more…)

This article was printed from https://deadline.com/2012/12/movie-profit-research-stars-directors-scripts-387497/