How profitable are media production companies?
That was the first question I looked into when I first started considering building a media production company. Money isn't the metaphorical root of all evil. It's a medium for transacting value. Coincidentally, minerals, animals, services, even people have historically been media for transacting value too. But those things aren't the birthplaces of "evil" either. Why then does money tend to get a bad rap when it drives motives, aspirations, inspirations, etc?
Because the initial intention changes over time. Eventually maybe that initial intention of good will, laughter, hobby, desire to entertain on some level, exchanges for greed. Greed is a reflection of pride. Pride can be an excellent motive though too. You put effort into a project or a brand; you want to see it succeed; you want what you and your team deserve. Fine. There's nothing wrong with earning your keep. But, at what point does it begin to supercede the entertainment, good will, passion that originally created it? When we get scared that what we've built will get forgotten, lost, discredited, put our futures in jeopardy, etc. Those are all possible, but when money becomes a driver for the sake of having money, we're back to insecurity.
Reputation counts for a lot, but profit margins bring longevity and security for all members of a team. People have to eat; mortgages have to get paid; lights have to stay on. So you see, profit is relative. Financially speaking, media production companies can double, triple, or exponentially grow their initial investments.
-According to Forbes writer Scott Mendelson: "Let’s presume that each Avatar sequel costs $250 million to produce and around $150 million to market, for $1.6 billion in total expenses. Considering that studios get around 50% of the ticket price, these Avatar movies may hit “break even” at around $3.2 billion worldwide."
...And that's just to cover the expenses. If we're talking the human factor, imagine if that cost basis were adjusted to a longer term scholarship fund for students/children of the production team to learn how to create media, with royalties from their productions circulating back into the initial company's accounts.
Why is it only gaged against the one project? Media production companies are as profitable as they are creative.
