Hollywood Rules Case Solution

1. Introduction/ Problem/ Identification

Managers in Hollywood and on Wall Street are depicted in this case. Dave Griffith, the film's producer, is responsible for securing financing, so he approaches Kim Meyer, a prominent hedge fund manager, with a business proposal. New forms of investment, like the Slate Finance Arrangement (SFA), have emerged as the economy has developed, and these have vastly improved upon the old ways of funding motion pictures and other forms of entertainment. Wall Street powerhouses like Goldman Sachs and Morgan Stanley were also keen to get a piece of the movie industry's lucrative pie. More than $13 billion was made between 2005 and 2007 by 150 films in the film business. Data from the 75 highest-grossing films in 2006 in the United States will be analyzed in this report. From a larger dataset of 150 movies with outliers and missing data, this final dataset of 75 movies was created. Only films with confirmed budgets between $20 million and $100 million were included in the final dataset. The purpose of this report is to examine the various elements that contribute to the box office success of movies, allowing a potential investor to make an informed choice about the type of film to finance.

2. Analysis

Wall Street's top fund manager, Kim Meyer, has made a series of wagers against recent blockbusters, including Spider-Man 3 and Pirates of the Caribbean 6, predicting that they would underperform. His predictions were consistently disproved by the box office successes of the films. However, his coworkers made millions of dollars off of these financial agreements. This case study follows two actors, Kim Mayer and Dave Griffith, to help us learn what Mayer didn't know about the filmmaking process and how the production was funded. Kim Mayer is an investor seeking for movie projects, and producer Griffith has 30 minutes to convince her that Hollywood is worth her money. Griffith recognizes the significance of the opportunity and the need to do a thorough financial study to ensure the success of his film. In this analysis, we choose to focus on a variety of factors that contribute to a movie's financial success. This report investigates the impact of opening weekend, genre, sequels, previously released films, and other independent variables on box office earnings. Although regression is the primary method of analysis, the report concludes by discussing other factors that have a significant role in the film's box office performance.

3. Alternative solution

1. Opening weekend gross, domestic box office, international box office, and opening weekend theatres are only some of the factors used to compile this first snapshot of the statistics. According to the data in the Table, the lowest opening weekend gross of 2016 was earned by "One Night with the King," at $4,120,497; the highest was earned by "Ice Age: The Meltdown," at $68,033,544; and the average was $17,468,465.57. In 2016, the lowest value for total U.S. gross was created by "Flyboys" with $13,090,630, the average value was $59,620,650.83, and the greatest value was produced by "Happy Feet" with $198,000,317.