![]() ![]() Yet, does the blockbuster business model still work? Do larger production budgets equate to larger revenues and if so, do these films actually return profit? To address these questions, I've examined the summer box office for years 2013 - 2016. Hence, why modern summer blockbusters are often referred to as ‘tentpole movies’ as they represent the most important products in a studio’s release calendar. Summer blockbusters were to bring in the most amount of revenue for a studio because the larger the production, the bigger the audience. Thus, the summer blockbuster business model was born. Its wide national release supported by blitz advertising created the first ‘event movie’, broke office records and became the template for later blockbusters including Star Wars(1977), Raiders of the Lost Ark (1981) and E.T. Movies like Gone With The Wind, Ben-Hur and Cleopatramay be considered among the first blockbusters of the industry but it was Jaws(1975) that created the modern summer blockbuster as we know it today. For the past century, Hollywood has relied on massive productions to bring in the most ticket sales. The reason being is that huge-scale films have typically attracted larger audiences with a promise of cinematic spectacle. The term "blockbuster" in entertainment refers to big budget movie productions that attract large audiences. To optimize the demand pricing model, studios will need to raise their level of awareness of the consumer's opportunity cost of going to see a film at the movie theater. ![]() Studios should consider dynamic pricing for movie tickets to capitalize on consumers' willingness to see a film. While "better films" may seem like the logical cure, I believe box office under-performance can be mitigated by simply aligning with consumers on expectations. In this article, I want to propose a potential solution to avoiding box office disappointments like the one we just had. ![]() But why exactly do we feel so dissatisfied? Maybe because we expected more for the high price of admission. From boring re-makes, to unoriginal sequels, this summer was frustrating and disappointing for all cinephiles and movie buffs. If you're an avid moviegoer like me, you likely noticed the critical and financial let-down that was the Summer 2016 Box Office. ![]()
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