Take a look at the Lionsgate annual report and it becomes quite apparent that the company is not performing at a profitable level. This is also that case with most studios. Blame the economy, blame management, blame poorly made films - whatever it may be, something is off. Furthermore, this pushes money from wall street and investors away as many who have ventured into hollywood have left with empty pockets. Maybe it was not understanding the entire deal, maybe it was the studio or a producer screwing over the investor. Either way, this thought process of not attempting to provide investors a return on investment and a structured investment business will have to change.
Question is - what can hollywood do to attract new investments and incentivize investors, HF's and PE?
Easy answer: make money. ha.
To be honest though, I'm not so sure. I'm no where close to the "biz" but from what I hear, its a pretty closed network. Transparency might be a good first step.
Stop making crap movies. The public may be suckers for shitty sequels (like Pirates, Transformers, ect), but in order to make the big bucks you have to actually make a good movie first. It's shocking some of the movies that get made and the studio wonders why they are losing money.
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