The Economics of Hollywood | Economics Explained

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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 you’d 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 Craig’s 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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[EconomicsExplained]

A huge thank you to Skillshare for making this video possible and for offering a completely free trial of Skillshare Premium trial to the first 1, 000 EE

[Adrian-jnov]

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

[RyanW]

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.

[stephenwodz]

The most creative people in Hollywood might be the accountants.

[lucas]

And just as we needed him, the Aussie man returns

[HowMoneyWorks]

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!

[danielbenton]

I find the new text thingy distracting and a bit dizzying. Great video tho and the quality is just getting better and better!

[ayush.kumar.]

The Economics of Hollywood: Remakes, Sequels and Prequels. Then start your own Streaming service.

[zacharythompson]

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.

[unity_talon]

The typography is nauseating and distracting.

[elegantbiscuit]

"In Massachusetts..."

Shows Texas state capitol building with a very visible texas state flag

[DonPidgeon]

Anyone want to bet against that the "Worst Mistakes Economics Explained did in 2121" will feature Kinetic typography?

[mick]

EE: Disney is not a monopoly.

Me: Not yet. Give it a couple of years, and then I'll say 'I told you so'.

[jacob_s]

Pretty please no more extreme rotations or movements on the text shown on screen

[dishankjain]

EE, my man, your video literally screams "I want to show off my kinetic typography skills"

[cocoabutt]

If this were the 80's I'd be speculating about "Economic Explained: the movie."

[SNesbit]

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.

[thomasmaddox]

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.

[Quickonomics]

Hedge funds: "AMC is overrated"

Meme investors: "Hold my overpriced Coke."

Me: *grabs overpriced popcorn*

[mibrahiim]

- *talking about Disney movies, specifically Star Wars*
"It's because they make great movies"

Bold statement there, good Sir.