Bad movie sequels & why we keep making them

Ever wondered why box office failures continue to come up with dismal sequels?
 
 The little not-so-secret of production companies -
 
 $$ MERCHANDISING $$
 
 Production companies have realized that the real money is not in the screens.
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 It’s in the merch!
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 But that can’t be that big a number, right?
 
 WRONG!
 
 Take 6 franchises and their merchandising revenue:
 - Toy Story 3 > $ 10 Bn

10x BO (box office collections)
 - Frozen > $5 Bn

3.5x BO
 - Transformers > $7 Bn

3x BO
 - Harry Potter > $ 20 Bn

3x BO
 - Marvel > $ 41Bn

4x BO
 
 Why?

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 1/ Screens need to make way for newer releases too as they can slowly fail to fill up screens.
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2/ Some of the characters in the movies have created so much value for the production houses WAY before the sequel is even released.
 
 How though?

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 MINDSHARE!
 Making characters last longer in the minds of their viewers is a science. They do it by bringing in new avatars or new attributes in the sequels (as simple as a change in outfit or hairstyle).
 
 Risk of inventory, sales & distribution?

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 NONE!
 They license it out in exchange for 10-15% royalty with ZERO risk of inventory and distribution.
 
 If you think a sequel was a failure because you did not like it or was rated poorly or it ran out of screens quickly,
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 THINK AGAIN.
 
 #strategy #franchise #entrepreneur #leadership #media #entertainment