The Economics of Hollywood | Economics Explained
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- Äas pĆidĂĄn 14. 06. 2024
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$42 billion dollars.
That is the amount of money grossed by films at the global box office in 2019.
Impressive? Definitely. Surprising? Probably not, especially when you consider that global box office revenues have increased year-over-year since 2005.
That was, of course, until COVID.
As youâd expect, the pandemic has devastated Hollywood - resulting in an unprecedented seventy-one percent (71%) decline in global box office revenue.
Worse yet, we all have to go another year without Daniel Craigâs No Time To Die -
a title that has since taken-on somewhat of an eerie meaning.
But putting the absence of James Bond aside ... movie ticket sales have actually been on the decline for nearly two decades - despite a steady increase in population over the same period.
So, if people are going to movie theatres less often - and they are -
then what exactly is driving the growth behind global box office revenue? [note]
To answer this question, you have to understand the economics of Hollywood.
How do movies get funded?
What is the role of government subsidies and alternative revenue sources?
How can a movie gross more than its budget and still lose money?
And finally, what are the economics behind movie theatres and their twenty-dollar buckets of popcorn?
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Yeet
it's a miracle, ee video finally
The motion graphics with text appearing on the screen is very distracting, please remove it :(
Signing up to help you get that James Bond Aston Martin
Disney is not a monopoly but they are certainly part of an oligopoly. They control a huge amount of the supply and the world's biggest franchises of course it's show them or die. I thought that argument was a bit week but overall great video
Urgh, the moving text is nauseating.
It's like ADHD turned into prose.
I usually look away from my monitor to my smartphone for distraction, for this video I did it out of necessity.
Kinetic typography is very annoying to look at, I agree
The most creative people in Hollywood might be the accountants.
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It's the people who stole the camera tech from Edison and fled to California to avoid the fed before transportation was easy to go find them. Not My problem tho.
Everything they do is certainly... original.
@@Crusader143d Hollywood was founded on piracy.
This is just my opinion, but I really disliked the kinetic typography. Takes away from the calm and easy-to-digest style of your videos which I like.
I agree
Ditto
yeah i am about to throw up go easy with it next time
I was going to post this myself. The movement is distracting. Go back to the old style please.
+1
Please consider not using that heavily animated text that twists and turns. Your videos are calm and informative. I don't need my eyes to have to move like a rollercoaster just to follow the video
Yep, the kinetic typography is far too nuts.
I also feel this way, very distracting and impedes my comprehension :(
Just adding my two cents if EE is reading this : if you have a chunk of text make it normal, but if you have title or something very short it's okay in my book, for example at 3:20, that's a cool way to show your title and 3:50 that's also a nice presentation. However at 5:56 that's too much, i would prefer to have the whole text in one go. Plus for people who are not native english speaker, it helps to pause the video and read in their own time the text.
Agreed. The pacing of the visuals is consistent and pleasant everywhere else and the kinetic type throws that off.
Is it me or is he also just talking at like a super speedy way? And exactly I love EE because of how calm and informative they are which helps a lot especially if it's something quite complex being talked about. Sorry Economics man but this new style ain't it :(
And just as we needed him, the Aussie man returns
Where my game stonks video though?
Now with a new and improved flavor!
@@EconomicsExplained Where were you Mr micheal? I missed you so much đđđ
@@EconomicsExplained FINALLY! thank you for bringing back some normality into my life, with my evening dose of Economics explained! :D
My aussie boy I got so worriedđ„ș
Good to see Michael from Economics Explained is alive and well, I was beginning to think the governments ranking at the bottom of the EE leader-board had finally got to him!
Not today my friend haha
He has a security detail made up of the finest Norwegian and New Zealander experts
*Michael Bay
I find the new text thingy distracting and a bit dizzying. Great video tho and the quality is just getting better and better!
Thank you
I agree with you Daniel. It made me quite queasy.
In some ways, it is great and brings attention to specific words and points - but when overused it's distracting, and the spinning of the frame is indeed dizzying
Lucas Brunelle yeah once or twice in a video would be fine but constantly just gets annoying
Agreed
The Economics of Hollywood: Remakes, Sequels and Prequels. Then start your own Streaming service.
@@Brent-ln9bc that's any big business, not hollywood specifically
I mean remakes, sequels and prequels are safer bets for investors compared to more risky new franchises.
@@khalmasonart yes that's true that's why I don't rail against pop culture movies as much as I used to
I know you just learned it, but please don't use the "kinetic typography". or at least not so much, especially in the middle of the videos. doing it once at the beginning might be okay. And for a video about Hollywood investors I assumed there would be way more about human trafficking and demon worship.
The economic info on the Trafficking and demon worship is covered by Hollywood accounting which is too opaque unfortunately.
@@thephilosopher7173
No it's not opaque.
Trafficking and demon worship are in arms race phase.
A rivalry of Hollywood vs South Los Angeles.
Trust/Offshore Fund trafficker vs MS-13 trafficker
Baphomet cult vs Cipactli cult
@@thephilosopher7173 demon worship is supernatural not economic
@@simonpetrikov3992 The more the avg person believes that things like this are simply beyond them, the more these ppl get away with it. For if it is supernatural you're only possible solution would be a being who likewise is this way. But if you depend on such a being then you have nothing to worry about since you can't do anything. But thats not logical, because we can do something, and therefore its not supernatural.
Anyone want to bet against that the "Worst Mistakes Economics Explained did in 2121" will feature Kinetic typography?
"In Massachusetts..."
Shows Texas state capitol building with a very visible texas state flag
Was looking for this comment
Well, the quality of EE has sadly decreased steadily over some time.
Catalin Deluxus in what ways?
*Shows Istanbul skyline*
There must not be a stock footage of the Boston building. He only uses stock footage.
EE, my man, your video literally screams "I want to show off my kinetic typography skills"
Which he learnt from SkillShare, SkillShare is the online learning platform.... (I ain't typing all that out :P)
No they just discovered the envato pre-made templates
The typography is nauseating and distracting.
Ikr, "Kinetic typography" is really overrated. Not sure why so many people use it.
I've only ever seen it in music videos. In my opinion that's where it should stay...
@@MegaLietuvislt or memes
Yeah, while it worked in the ad, using it in the video almost every time there was a text became tiring very quickly.
EE: Disney is not a monopoly.
Me: Not yet. Give it a couple of years, and then I'll say 'I told you so'.
At one time I worked as an IT accounting systems coordinator. Working with the accounting team through many month-end closings, they would tell accounting "war stories" from time-to-time about how the boundaries of accounting had been stretched at one time or another. My favorite had to do with the Hollywood company which had booked its prostitution expenses to the limousine rental account. During an audit, the auditor looked at the amount they were spending on limousine rental and made the recommendation that they purchase rather than rent limousines to save money.
BWAHAHHAHAHA! I worked as a Production Coordinator and Production Supervisor in film for 15 years. I imagine it was a lot harder before Airbnb. For exceptionally high-end âtalentâ, productions could usually find a âcharter jetâ company. But honestly most of the time the actor or producer just paid for it themselves, production staff just got tapped to âfindâ the talent. Which was probably awkward. Not like I ever had to do it working my way up in the indie and studio industryâŠâŠ..
I heard the other day that music productions often had a "fade-out specialist" budgeted who was flown in from overseas... And that covered the coke consumed in the studio.
LoL
Pretty please no more extreme rotations or movements on the text shown on screen
If this were the 80's I'd be speculating about "Economic Explained: the movie."
"In a world"
@@HowMoneyWorks Someone with a video editor (and too much free time) needs to make this trailer!
After enough cocaine it sounds fantastic
Feature all female cast (Because you know gender politics).
@@EatMyShortsAU Are you female?
The kinesthetic type is a bit overstimulating to me.
Definitely
"Disney isn't a monopoly"
But that's exactly where they are heading though.
Any self-respecting business wants to become a monopoly some day!
Disney can never be a true monopoly for one simple reason: They can't stop other people from making movies. They don't control the means of production or distribution that they can keep others from using, they merely own lots of popular IPs. IPs are just ideas and it's impossible for anyone to monopolise ideas, so to complete with Disney you need better ideas.
@@secondavenger9775 Well, can't Disney just buy competing new IPs, by making an offer one can't refuse?
"Disney aren't a monopoly, they just make great movies."
No, they just own most movies.
Disney is more of an oligarch than a monopoly.
The new editing techniques are cool, but I don't think they're a good fit for this type of video. Slower and calmer is better, this new style is a little frantic and busy.
"Disney makes great movies".
I'd be with you if you hadn't brought up The Last Jedi.
He did. I rolled my eyes hahaha
You mean the best star wars movie since ESB? I guess not everyone appriceates quality
The Last Jedi is a great movie.
- *talking about Disney movies, specifically Star Wars*
"It's because they make great movies"
Bold statement there, good Sir.
It's because they have good marketing. The movies are ok.
It is just nostalgia for nerds.
I would have put it as "They make big movies" Big budgets, big reputations, big audiences and big potential returns.
@@EatMyShortsAU actually the nerds hate the new trilogy
@@pk9580 Yeah I heard about that.
Hedge funds: "AMC is overrated"
Meme investors: "Hold my overpriced Coke."
Me: *grabs overpriced popcorn*
You literally MUST make that as Kinetic Typography.
It Flies...
Mr economics man is back. Been a long two weeks
That kinetic typography almost made me nauseous, pls dont do that again. Love the video
Sir, I have missed my Economicâs being explained to me. I almost went back to school
18:35 I think the "Disney makes great movies" part is up for debate. Especially considering the example you made with the new Star Wars movies.
Yeah, this seemed so backwards to me.
"Here's an example of them acting like a monopoly. But they're technically not a monopoly so that means everything is fine."
Uh, what?
I think âpopular moviesâ is more accurate.
@@comik300 That made sense.
They are not a monopoly because the movie theaters can show other movies. They don't NEED to show Disney movies, but can chose other studio's, hence no monopoly.
But because the Disney movies are so anticipated, the cinemas not showing the movies will simply lose many customers. Yes, they wouldn't make money with the tickets sells, but still sell drinks and snacks, which does provide an income. And any other movie they could show instead of the Disney movie, will never be visited as often and thus likely make less money.
So, it's not a monopoly, although Disney acts like they have one and the cinemas don't really have a choice.
@@lubue5795 yeah, Disney is a part of a Oligopoly, not a monopoly, but EE made it seem like it's "Free Market"... No, he literally said "it's because it's a free market and Disney's movies are really good".
It's less of a "AKSCHUALLY" pedantic correction and more of a misleading correction.
The power of long running franchises seemingly taking hold of some consumers due to nostalgia or just simple comfort despite the quality - gaming the system of a fandom's demand.
Just taking a moment to feed that CZcams Algorithm. Also, you're going a more than a bit overboard with the kinetic typing. A little bit is okay but too much and people start developing headaches. I guess what I am saying is that moderation is the key.
Not a fan of the rotating words. It's hard to follow, simple still text is much better.
Please go to the old editing style, calm and focused on your narration, no need for flashy text and over-editing.
Last time I was this early New Jersey was âthe Hollywoodâ
"Thomas Edision has entered the chat"
I feel like this is very similar to Tom Scott's video: CZcamsrs have to declare ads. Why doesn't anyone else?
Still very important subject since endorsement laws are nothing but fair.
Just had CZcams recommend that to me, excellent video
âLook at this new skill I learnedâ
*sad editor noises*
8:01 Tom scott just talked about this!
You stole my comment :(
Yeah, but most likely this video was already done when Tom made his publica
"Disney makes great movies..."
Well, that's a bold claim!
In a financial sense, it's not a question when compared to other studios
âDisney simply make great moviesâ
Uses The Last Jedi as an example.
Normies gonna normie
If Disney makes great movies, then McDonald's makes delicious, healthy exquisite cuisine.
I assume this was a sarcastic remark on EE's part, and he will provide a real answer later on..? Please EE?
@@FireHax0rd I swear I've seen so many respectable people having such a terrible taste in movies, enjoying then simply for the fact they're 'part of the bigger franchise' and being loud, colourful and bombastic it makes me suicidal.
@@FireHax0rd maybe it was a reference to the massive second week drop off the movie experienced which would have cost most cinemas the chance to make a profit off the movie. Or it was just the first big movie to demand 100% of the first time gross.
the rotating text makes me dizzy
*Things are getting worse, it's so bad that having a job doesn't mean financial security*
Several intelligent people are terrible investors because they face the market with untrained psychology and untamed emotions. . You need to keep raw, irrational emotion under control.
Really wish I knew what I know now several years ago in my early 20's.
Investing today is priceless because tomorrow isn't promised, trading bit-coins, gold, silver and crypto secures a better future financially.
@@schimdtbouchard5484 This is very true.
How many wealthy people or billionaires became wealthy by wages and salaries or by saving in a bank account? You don't even know one right?
Yeah I agree with you, I think the best time is now .
@@schimdtbouchard5484 funny enough they don't know how the fiat money keeps losing value.
Our global economic value just keeps declining. Dollar will soon not be the safe haven.
It's been a long month, but he's finally back.
"Who provides the funding of the studios?"
Answer: China
Calling the Sequel trilogy "great movies" feels dirty...
Well it is great from a certain point of view ; a Financial one
Super pleased you enjoyed my class! Just embarassed by how baby-faced I was 8 years ago.
I think we can all agree that kinetic typography is a horrible thing that must end right now. Your content is of great quality, it doesn't need distractions to hide an actual lack of content, it is full of it.
Finally an upload. It's been long mate. We were starved of this great content.
This might honestly be one of my favorite CZcams channels. I learn so much here.
I never cease to be amazed at the depth of your research ! Such good quality ! Kudos
Sorry .. free market economics intertwined with lots of government incentives. Just wanted to clarify this isnt a true free market lol.
Meh he's a hardcore right winger. Most everything in this channel is told through the twisted lens of a fascist.
@@sithrebel1548 he's admitted to being a Social Democrat or something like that when he talked either about the Universal Basic Income, Minimum Wage or Norway.
I do hope you're joking as this seems like a joke.
@@perfectlyfine1675 galatians 4:16
@@sithrebel1548 Do you even understand the definition of Fascism, or are you just calling anyone who doesn't agree with you a Fascist? Last time I checked, Keynesian economics isn't "hardcore right-wing", whatever the criteria for that is.
@@sithrebel1548 so, you're serious? Ooh, boy. Please do tell me how you've figured out the political positions of a channel that only tells about economics? Also, about how a channel that alluded to being left wing and critisized Third Positionist economics is a Fascist?
Final point: praising the free market and being Fascist are mutually exclusive. Fascists want total control, economy included.
Pls donât spin the text around as much it feels like a rollercoaster
States and countries do have another incentive for MPI's: A location heavy blockbuster can act as basically a 2 hour long tourism advert. A lot of New Zealand's increase in tourism can be attributed to Lord of the Rings. So if you incentivise movies to shoot at stunning locations in your country or state, and then make sure everyone who sees the movie knows where it was filmed, you can have a lasting legacy of increased tourism, especially if the movie is a massive hit. Though to be fair there are a lot of cases where the location isn't disclosed or is even hidden to pretend it is somewhere else.
Not anymore, and in fact New Zealand and Peter Jackson are who started the trend. We now include tourism boards where we shoot in the end credits for just about every film that gets an MPI.
@@georgeadams1347 I don't think LOTR were the first films to use MPI's in exchange for a tourism boost. In fact it seems that the US was the first to really use the strategy around the early 90's, where states would compete and some would market film locations as tourist attractions. LOTR is probably one of the biggest examples outside the US, but it's not the only one, and probably isn't the first.
@@Croz89 LOTR was the trend setter exactly because of itâs success. MPIâs had been around since the early 90âs but only a very small fraction of films shot primarily outside of the LA and NYC production zones. Starting with LOTR that trend started to change. Namely because Peter Jackson proved that we could manage the logistics and that places outside of California and New York had talented crew bases. I didnât start working in film and TV until 2005 and that was largely as a PA but you heard about the trend line of productions basing out of different states and countries. Vancouver BC had become a production hub by the time I started in the industry. Atlanta was still years away from itâs ascension and Weta and Jacksonâs production company were just getting going.
@@georgeadams1347 Big budget films would regularly do location shoots outside of the TMZ, it only tended to be cheaper films that stuck to those locations. LOTR may be when such a strategy entered the public consciousness, but it likely wasn't the first.
And from what I heard, LOTR was originally going to film in the UK, because it had most of the landscapes required, it's the home of the author of the books, and it has a reputable film industry with world class studios.
There are exceptions. Think about Hostel, what a tourism killer.
Welcome back, we missed you. Great video as always. I'm an accountant and these things are incredibly interesting. 100% spot on with your facts and descriptions.
"Disney makes great movies" spoken in the context of "The Last Jedi"? Seriously, dude... seriously?!
Yeah, that's a good one to pick up on :) Nicely done!
"In Massachusetts for example..." we have the state capital of Texas. Is this a Road Trip reference where characters get confused between Boston and Austin?
Noticed it too đ
A yes Texas we swapped with New England.
When you were talking about Massachusetts' movie industry at around 11.5 minutes you showed the Texas state capital building :D
Glad to have you back, mate.
Thanks for the great content always!
Cool, now I know the name of the typography animation style that really distracts from interesting videos.
Stop the moving text dude... it's very distracting
Informative. Thank you.
Love this video, nice to see the cool new graphics. Keep up the awesome videos so we can keep watching!
Loving the refreshed looked mate! Will there be a Hollywood sequel!?
haha we will see my friend, hopefully I can turn it into a franchise, that's where the true tendies are these days.
Huh, there was just a Tom Scott video about the disclosure stuff. Interesting.
Love the new animations and nice to see you again
This upload come when we needed it most
Tom Scott recently put out a long video going into much more details about the discrepancy between TV/film and influencers regarding the need to declare sponsorships, for anyone that's curious :)
Me: Wandering around CZcams
E.E: Hello there
Me: *Intense hyperventilation in excitement*
i hit LIKE in like 2minutes of almost all EE videos. its just very pleasing to watch this channel's videos
This. This is the video I needed.
Wow he isn't dead
Cue 0:06
"Impressive definetely,
Suprising probably not"
kinetic typography is cool n stuff but like, maybe for a video when you've sniffed the magic economics dust from wallstreet
Great video quality and glad to have you back! Please consider making a summary at the end of your videos. Just like how you make a content breakdown at the beginning, it really is crucial for a well-rounded presentation
Super video with lots of in-depth information
New typography is nice, but you are overdoing it a bit đ
@Economics Explained will you make an episode in which you explain what your research method is and the sources that you usually use to create the incredible content you make! Thank you!
Great as always.
Thanks for the added animations. Your videos are much easier to follow now.
Excellent video, as always! Fantastic quality and research, but I do agree that the kinetic typography is kind of distracting. I like the animated graphs quite a bit though!
A video on Hollywood, interesting indeed, Then I can guess that next video will be Economics of digital streaming (like Netflix and Disney+)
hey mate, your one of my favourite channels on youtube.
thanks for the content!
Finally!!! Welcome back đ„łđ„ł
Saying Disney isnât a monopoly is an absolutely insane take
In 2019 (pre covid) disney made 10 movies. 792 movies were released in the us and canada. Disney are not a monopoly (single seller). They just have a huge box office because their films are very popular.
You don't understand the meaning of monopoly
Monopoly doesn't mean big company, in means a company that controls most of the market. IE, Google has a search engine monopoly. Most of the movie industry is consolidated into a small few studios, but none of those studios on their own rises to the level of a 'monopoly'. If you went to a movie theater rn, and counted all the movies being shown, Disney would probably constitute ~30% of the films. It's a huge share and a lot of control, but plainly calling them a monopoly is an absolutely insane take
EE: Hollywood will probably never make a movie about Hollywood accounting.
The Producers (1967, 2005) has entered the chat.
That is Broadway accounting.
The production quality is amazing
I've been keep coming back to your channel looking if I missed a video. Where were you? We missed you bro :D I learned so much from this channel about economy of everything. Keep up the awesome work
Now this is what you call a high quality video!
Probably thanks to skillshare?
How did you come here?!
What a madlad! He learned Kinetic Typography and Drawing on Skillshare while he was away just to be honest about his sponsorship.
Been waiting for you
Best video Iâve watched on YT in a while
Love your channel, but when using the 15 years of global box office revenue and NOT adjusting for inflation (which in developed economies that watch movies is ~40% over that time period) is quite disingenuous. I understand why you use the data as it is, but I feel that a simple casual "but nearly half of these gains are lost to inflation" would solve the issue.
This happens way to often... and all too often when adjusting for inflation things look brim
The fact that Disney can force those pricing agreements makes them a monopoly at least in spirit.
It does point to the fact that many of our largest dominating companies (which are acting like monopolies) are there because the public wants them so much. Amazon, Google, Disney; thei all succeed because they give the consumers what they want. But they also do (or at minimum threaten) great damage to the society through their outsized control.
I'm not sure how to address that.
love your video! Greetings from Sweden
Ok, you are back ....thanks ....greetings from Iceland
The funny New Zealander is back, he's not dead!
0:47 , 3:53 , those parts are intense and maybe too much but I like the moving graphs and other parts :) thx for the nice video
This was fascinating.
Nice to have you back Mr.EE.
Why is nobody talking about Cruptocurrency at this moment? It's on a bull run and a lot of people are defintely gonna miss out on that just like the last time
Bitcoin Trading is the best thing I've ever done since the inception of Cryptocurrency
@Joanna Maidlow Yeah no doubt the crypto market has earned me alot you just gotta understand the market
Crypto is the new gold
@@alexanderhamilton2252 Yeah investing in crypto is a big chance to make money nowadays
@@chrisremero3277 I've got interest in investing but afraid of doing it on my own to avoid loss from my end
I love this channel! Thank you for opening our eyes to all the hidden economics around us.
Dude you made the best Skill Share ad I have ever seen. They should make that into an actual ad they run on other pages! Nice drawings bro!!!
I m really happy you are back I was checking your other channel and those channel were also dead which made me worry what happened
Thanks for the concern mate, I was just taking a bit of time off for myself and also to work on new charts and graphs for the video's.