Monday, December 29, 2014
Constraints lead to innovation
There's something to be said for pushing the envelope to the edge. When Sony announced they would pull a movie from the? theatres, it was only a matter of time when it would launch it for an online platform. In the past, this would have meant a "straight to DVD", a sure sign of a terrible movie. But today, it is a viable option with HBO, or OnDemand, or various streaming and downloading platforms. Sony said that over the past few days, the Rogen/Goldberg/Franco movie was downloaded over two million times, at a cost of either 6$ or 15$, and raking in 15 million$. Basic math suggests that's around 1.67 million rentals and 0.33 million sales (a 5:1 ratio of rentals to sales). I'm not sure what the expectation is at this point, but total sales of 50MM$ to 100MM$ seems reasonable enough, enough to breakeven.
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