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The Hollywood Economist: The Hidden Financial Reality Behind the Movies Paperback – February 23, 2010

3.9 out of 5 stars 22 customer reviews
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Product Details

  • Paperback
  • Publisher: Melville House (February 23, 2010)
  • Language: English
  • ASIN: B008SLP25Q
  • Product Dimensions: 5.6 x 0.6 x 8 inches
  • Shipping Weight: 8.8 ounces
  • Average Customer Review: 3.9 out of 5 stars  See all reviews (22 customer reviews)
  • Amazon Best Sellers Rank: #2,809,379 in Books (See Top 100 in Books)

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Top Customer Reviews

2.0 out of 5 starsJust like in the movies, this sequel is not so good
By Abacus on March 10, 2010
Format: Paperback Verified Purchase
This is Epstein sequel to The Big Picture: Money and Power in Hollywood released in 2003. Unfortunately, it adds little new information. Here are some of the main themes that are repeated from the previous book:
1) The history of Hollywood with the Studio era (stars are just studio employees; and box office captures 100% of the business) from 1929 to 1950 and the new Studio era (stars make the real bucks, and movies account for just 20% of revenues).
2) Movie financing considerations including cast insurance, completion bonds, pre-sales distribution contracts as collateral for bank loans, and investors ready to lose their shirt to make the whole thing work.
3) The pop corn economy where movie theaters make more money from pop corn and sodas than movie tickets.
4) Hollywood's focus on male-teenagers because they go to the movies and buy the merchandising follow ups (DVDs, video games, toys).
5) The Hollywood formula for blockbusters: a PG rating, a vulnerable character turning into a hero who will vanquish evil forces, etc...
6) Arnold Schwarzeneger's lucrative success in the Terminator movies.
7) The financial fiasco of "Gone in 60 Seconds" even though it grossed several hundred millions.
8) The emergence of VHS and DVDs that first threatens Hollywood business model. Ultimately, Hollywood will learn how to make more money from videos than from movie tickets.
9) The difference between studio produced moronic blockbusters with sequels, prequels, and merchandising follow ups, etc... aimed at male teenagers vs intelligent independent movies doomed for commercial failures but often reaping Oscar awards.Read more ›
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4.0 out of 5 starsInteresting -
By Loyd Eskildson HALL OF FAME on February 26, 2010
Format: Paperback
In 1929, an average 80% of Americans attended movie theaters each week. Today that figure is less than 6%, and there are only one-third as many theater sites. (More screens, though, due to multiplexing.) Epstein goes on to also reveal that the major studios lose money on most pictures, and not because of accounting legerdemain. They spend more on production ($65 million average), advertising ($3.7 million/picture average on newspapers alone, $19.2 million average total - including TV), and distribution than their net revenues; similarly, theater chains also lose money on showing films. No, the studios and theaters don't make it up on volume - the studios' main income is from DVDs, pay-for-view TV, toys, fast food tie-ins, and electronic games, and the theaters' profits come from the concession stand (80% margins). The secret to studio success - couch potatoes, not movie-goers, and to theater success - add more salt to the popcorn and boost soda sales! (Theaters should get a cut from cardiologists?)

Epstein's "The Hollywood Economist" reveals a number of key movie-industry details, such as stadium seating (eliminates most blocked views) increased attendance 30-52% when introduced, the business is seasonal (500 million of 2007's 1.4 billion tickets were sold in the summer season, and another 230 million in the Thanksgiving - New Year holiday season), Schwarzenegger's contract for "Terminator 3" was 33 pages long and gave him a $29.25 million guarantee + 20% of DVD, TV, game, etc. sales after reaching break-even, financing for star-studded movies requires insurance (guard against injuries, walkouts, etc.), etc.

Ever wonder why most theaters are now 299 seats or less? Epstein tells us - the ADA requires wheelchair access to all rows if the number of seats exceeds 299.Read more ›
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2.0 out of 5 starsThe Numbers Don't Add Up
By R. Pearson on March 5, 2010
Format: Paperback
Unfortunately, while the topic is a worthy one, the Author covered about 80% of this book in his earlier and by far much better book, The Big Picture: Money and Power in Hollywood. What's worse, much of what's new comes from other articles he's written which are freely available on the web. The author also repeats himself in various parts of the book. Finally, by using large fonts and margins, the book is nearly twice the number of pages it needed to be.

These are, in a nutshell, the big problems with the book. For those interested, here's more information:

The author knows his stuff, I'll give him that much. And I loved his other book, The Big Picture: Money and Power in Hollywood. But this particular book really is little more than a collection of essays or blog posts which he has already covered via his "Hollywood Economist Blog" or articles on other blogs or magazines (most of which can be found online by searching his name and the title of this book). For example, his section on "the real secret is the salt" in this book was covered in his 1998 New Yorker magazine article entitled, "The Popcorn Economy". And his blog entry from January 2010 presents the same content found in his book on indie financing. And his section in this book on the role of technology in the industry is essentially his 2006 Financial Times article entitled "The Samurai Embrace" - he even uses the same term in this book.Read more ›
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Most Recent Customer Reviews

3.0 out of 5 starsSimple overview of the movie business. The economics are ...

Simple overview of the movie business. The economics are interesting but not compelling to invest in. Short read...worth the time.

Published on July 30, 2014 by Carl Bardy Jr.
3.0 out of 5 starsInformation I had never seen or heard about from any other source

This book is full of interesting information about the economics of the movie industry. However, I wonder if some aspects of it aren't a little dated, as it came out over 3 years... Read more

Published on March 8, 2013 by A. Fineman
5.0 out of 5 starsINTERESTING BOOK

THIS BOOK IS VERY INFORMATIVE AND VERY WELL RESEARCHED, AND WELL WRITTEN. I SURELY WOULD RECOMMEND THIS BOOK TO ALL.

Published on January 2, 2013 by Charles O. Donaldson, Jr.
4.0 out of 5 starsInteresting if a bit dry...

This is a good brief read if a bit short and lacking in visuals, which is ironic, since it's about the film industry. Read more

Published on August 9, 2011 by J. Richard Singleton
4.0 out of 5 starsMultiple Sources of Revenue - How The Movie Industry Survives These...

This book is pretty much straightforward in its storytelling. For a slow reader like me, finishing it in only three days felt really good. Read more

Published on March 8, 2011 by H. D. Espinosa
3.0 out of 5 starsFasicnating but unsatisfying view into entertainment economics

Epstein has definitely written an accessible and enjoyable book about the business of show business, and his analysis often highlights fascinating aspects of the production... Read more

Published on January 13, 2011 by Robert J. Karol
4.0 out of 5 starsAn Insightful read

With the business of movie making looking to new ways of delivery & production, "the hollywood economist" helps demystify the market forces that are forcing the industry to... Read more

Published on September 7, 2010 by Stefan.P.Gillard
5.0 out of 5 starsinformative & fun

i learned as much as i enjoyed reading this book, a tight, concise interplay of sharp arguments and real-life examples.

Published on September 5, 2010 by Leung Hoi Tung
4.0 out of 5 starsA quick informative peak at the dollars behind the make up

Epstein has had a distinguished journalistic career breaking stories as varied as disclosures surrounding the Kennedy assassination, the diamond trade and the spy craft between the... Read more

Published on July 25, 2010 by John E. Drury
2.0 out of 5 starsNot original and not substantive

This book is perfectly average in its genre. The articles are as short as newspaper columns (average seems to be about 300-500 words) and so there's not much ability to discuss a... Read more

Published on June 20, 2010 by Don McGowan

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