Economics




Profitability of a film studio is crucially dependent on picking the right film projects and involving the right management and creative teams (cast, direction, visual design, score, photography, costume, set design, editing, and many additional specialties), but it also depends heavily on choosing the right scale and approach to film promotion, control over receipts through technologies such as digital rights management (DRM), sophisticated accounting practices, and management of ancillary revenue streams; in the extreme, for a major media franchise centered on film, the film might itself be only one large component of many large contributions to total franchise revenue.

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