Tuesday, April 20, 2010

Re: [Avid-L2] OT: SHOW ME THE MONEY!

So basically, Apple is the GE of this generation?

Philip Hodgetts wrote:
> On Apr 20, 2010, at 5:36 PM, RT wrote:
>
>
>> And they now have close to $42 BILLION in the piggybank. That's
>> untapped potential. Meanwhile, Avid drained around 27% of their cash
>> reserves in 2009.
>>
>
> To keep this in perspective, Apple now have enough money on hand to:
>
> Produce about 700 "average price" (ie $60m) movies up from $35 million a decade ago - and yet the movies aren't twice as entertaining!)
>
> Compared with about 400 movies coming from the major studios a year now. Apple alone could out-finance the entirety of "Hollywood's" production.
>
> or if we assume an hour of quality scripted production is around $2 million an episode (down from an average of $3 a while back) then that's 21,000 TV episodes (or more since many shows do not cost $2m an episode). 21,000 episodes equates to 1050 20 episode series. Way more than are currently being produced in this budget space.
>
> If I were a studio or network I wouldn't be pushing Apple too hard on terms and conditions as they could simply be replaced. After all the network and studio are not creative, just the middle men that could easily be replaced by another middleman.
>
> I'm not saying this would be a good idea for Apple, just that it's an interesting way to think about it.
>
> Numbers are out of date a little (u[daed above) but I expanded on the idea last December
> http://www.philiphodgetts.com/2009/12/10/what-if-apple-or-google-simply-bypassed-networks-and-studios/
>
> Philip
>
> Philip Hodgetts
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--
Dom Q. Silverio

------------------------------------

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