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Managing Risk in the Film Business—Key Concepts and Methods

In: Towards a Comparative Economic History of Cinema, 1930–1970

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  • John Sedgwick

    (Oxford Brookes University)

Abstract

Box office is a measure of film popularity—the films people choose from an array made available for public consumption. While producer risk is a well-documented concept, commonly encapsulated in the so-called ‘nobody knows’ principle, consumer risk is less well-understood. Both are discussed. The POPSTAT method by which box office is estimated from programming data in the absence of archive evidence is also covered in this chapter. Its derivative RelPOP is used to make a comparative analysis of film popularity. Attention is also given to the International Orientation Index developed by Peter Miskell to explain the relative attractiveness of Hollywood movies in foreign markets. In addition, the importance of trade journals as a source of information and data and microeconomic concepts central to the investigation of industry behaviour are explained.

Suggested Citation

  • John Sedgwick, 2022. "Managing Risk in the Film Business—Key Concepts and Methods," Frontiers in Economic History, in: John Sedgwick (ed.), Towards a Comparative Economic History of Cinema, 1930–1970, pages 19-44, Springer.
    • Handle: RePEc:spr:frochp:978-3-031-05770-0_2
    DOI: 10.1007/978-3-031-05770-0_2
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