Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Copy of Arundel Partners: The Sequel Project

No description
by

on 14 September 2016

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Copy of Arundel Partners: The Sequel Project

Arundel Partners: The Sequel Project

Abhinaya Konduru, Azucena Acosta, Elmer Duran & Sabrina Kwan
Arundel Partners
Purchase a portfolio of sequel rights to movies
Function as options?
Yes, options to produce a movie sequel

Sequel Rights
In need of money during early stages
Expiration date
Risk of uncertanity
Profits
Bargaining power
Liquidity
26 Sequels
Hypothetical Case
Purchase 99 sequel rights
Only exercise 26 sequels
one-year return greater than 12%

Production
Distribution
Exhibition
Sequel
Timeline
Pre-Production
Principal Photography
Post-Production
Script development
Set design
Casting of actors
Set construction
Lighting
Transportation
Costume making
Special effects,
Film editing
Sound effects
Credits
1 Year
2 Months - 7 Years
1-5 Years
after the first film released
Good Time?
Before Production or at the beginning of Pre-Production
Not much about the movie is known
No information discrepancy between the studios and Arundel
Risk not making the sequel later
Bad Time?
After Pre-Production
Studios will know more about the movie than Arundel
Will not want to sell the rights
Will not be at a low price
Have more information to predict how successful the movie will be
Priced more correctly, less risky, less chance to profit
Advertisements
Making prints
Shipping prints to theaters
Licensing for pay and non-pay television
Projecting films in theaters
Other viewing media
Cost to
Produce a Sequel
PV of NI (from t=4) = 13.73 M
PV of Cost (from t=3) = -16.09 M
NPV per sequel right = -2.36 M
NPV = -234 M
Negative NPV → Bad to exercise all the options to make a sequel right now (out of the money)
PV of NI = 944.7 M
PV of Costs = -453.83M
Payoff =
490.87 M
Or
$4.96 M
per sequel right
Assumptions
Pay $2 M per sequel right
Net profit of
$293.04M
or
$2.96 M
per sequel right
Key Issues
All movies should not be made into sequel
Movie trends
Plot
Actors
Compensation
Retire
Death
Costs
Popularity
Controversy
War of the Roses
Divorce
End
Do the Right Thing
Racial tension
Violence
Criticism
10 Sequels
Hypothetical Case
Purchase 99 sequel rights
Only exercise for top 10 sequels
Based on greatest one-year return
Pay off: $368.11 M or $3.72 M per sequel right
Profit: $170.28 M or$1.72 M per sequel right
Independent producer
Studios withholding movies
Fight in a court of law
Roadblocks
Outcomes
Produce all 99 sequels:
Payoffs:
Exercise 26 rights

$4.96 M/sequel right
Exercise 10 rights
$3.72 M/sequel right
Exercise 8 rights
$2.73 M/sequel right
Blocking top 2 movies
Look Who’s Talking
Driving Miss Daisy
Payoff: $269.83 M total or $2.73 M per sequel right
Profit: $72.27 M total or
$0.73 M
per sequel right
Conclusion
Full transcript