Arundel Partners: The Sequel Project Case Study Executive point In April 1992, an innovative idea was proposed that would capitalize on characteristics of the hire industry. The proposal came from the fact that producing and distributing motion pictures is a risky trading and predicting the success of any learn was difficult. The proposed venture was to create an enthronization group, Arundel Partners, which would bribe the good continuation rights associated with flashs produced by one or many a(prenominal) American film studios. Arundel Partners dedicates to obtain the cataclysm rights, take aim beforehand the original delineation is in production. Based on favourableness of the original film, only a few films will deform sequels. The idea is appealing to studios, since Arundel would offer cash during the sign films production, and studios know profitability is usually impose on sequels. Arundels estimated profitability depends on how much it had to pay to bargain for the portfolio of sequel rights. Purchasing sequel rights before the throw in of the early film is very risky, and potentially profitable for Arundel repayable to the coronation being incorporated as an option. I. Profitable prospects of buying 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 wages of the finical characteristics of the movie industry. For example, Arundel Partners could track the box office surgery 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 al lows the investment group to exercise sequel! s that more probably to be successful and does not obligate them to...If you want to contain a full essay, order it on our website: OrderCustomPaper.com
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