How do media production companies make money?
I'll do you one better and answer with a question. How creative is the production team? That is the limiting feature into how production companies can make money. Think about it like this.
The traditional model is ticket sales, advertising, merchandising, publicizing, complementary spin-offs, franchising, etc.
But why? Why are those the traditional go-to's? Effectiveness, for one. Time-tested proof as profitable, for two. But, what about now that there is an increased demand for digital marketing? There are affiliate and partnership options; crowdfunding considerations, like NFTs too. And that's just to raise money in the beginning, and with the assumption that a project comes in under budget, then BOOM, instant profit. Likelihood = slim.
So if that's not a viable option, what next? Let's go the other direction. Let's assume the project in question goes over budget during production, and ticket sales aren't high enough to cover the initial costs = the project loses money. Now what? Well, you can't overlook classic cult followings of some old-school B-rated movies; remakes decades after the initial release; one hit wonders in the music industry that erode away at the slope of profitability over time and just grind out their positive earnings through royalties and long-term exposure.
Making money is its own limiting feature. Ultimately, we're back to the human factor of generating income. The continuum of consumer attention, time/energy input, output with enough data for measurable analytics, and a growing profit margin isn't a new concept. The race for who can gain and hold attention has always been around. It's just back to the mainstream now.
Think colisseum, class president, student council, letterman jackets, social media, etc. So how do media production companies make money? The short answer, it's relative. How well do you try to understand your respective society, humanities, culture, etc? That's how.
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