Arundel Partners: the Sequel Project

Arundel Partners: The Sequel Project Case Study Executive principal In April 1992, an innovative idea was proposed that would capitalize on characteristics of the arrive at industry. The proposal came from the fact that producing and distributing motion pictures is a risky craft and predicting the success of any learn was difficult. The proposed venture was to create an coronation group, Arundel Partners, which would bribe the good continuation rights associated with word pictures produced by one or many a(prenominal) American film studios. Arundel Partners comprises to obtain the cataclysm rights, direct beforehand the original delineation is in production. Based on favourableness of the original film, only a few films allow deform sequels. The idea is appealing to studios, since Arundel would offer cash during the sign films production, and studios know profitability is usually start out on sequels. Arundels estimated profitability depends on how much it had to pay to leverage the portfolio of sequel rights. Purchasing sequel rights before the electric outlet of the early film is very risky, and potentially profitable for Arundel delinquent to the coronation being structured as an option. I.

Profitable prospects of acquire movie sequel rights Arundel Partners came up with the innovative idea of purchasing the sequel rights for the entire production of films produced by one or more(prenominal) major U.S. movie studios before the number one film is even under production. Then the company could take usefulness of the finical characteristics of the movie industry. For example, Arundel Pa! rtners could track the box office act of the first movie after it was released for a few weeks in theaters and could so predict if the sequel would be profitable or risky--depending on how much moviegoers liked the original. In other words, Arundel Partners structured their enthronization as a call option; the purchase of the sequel rights allows the investment group to exercise sequels that more seeming to be successful and does not obligate them to...If you want to lead off a full essay, order it on our website: OrderCustomPaper.com

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