9Managing Risk
Summary—The chapter focuses on how we measure risk in the movie business . It starts with a discussion of individual film volatility and presents what a single-picture financial model looks like. Special attention is paid to the challenges independent producers face in securing meaningful theatrical releases, with a case study on the film My Dog Skip introduced. The chapter ends with a discussion of strategies to minimize risk on individual film investments, addressing the entire budgetary and genre spectra, and assessing the alternative strategies of bifurcating rights by preselling foreign or doing a worldwide studio deal.
How do we measure risk in the movie business? The answer is with difficulty. Clearly there are a number ...
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