POL 128 Lecture Notes - Rupert Murdoch, Making Money, Product Placement
DepartmentPolitics and Public Administration
Course CodePOL 128
•approx. 10,000-12,000 companies involved in ﬁlm making today
•cultural products account for the most sales in US
•industry is dominated by Warner Brothers, Paramount, Columbia, 20th Century Fox,
Universal, and Disney.
•each studio makes about 10-15 major ﬁlms a year, and about a dozen minor
•average ﬁlm today costs $120 million
•Blair Witch Project ($35,000 budget) made indie ﬁlms popular
Breakdown of studios:
•Warner Brothers: aka Time Warner, was bought by AOL at one point, but has since
separated and is now owned just by Time Magazine. $28.7 billion/year
•Paramount : owned by Viacom. $15 billion/year
•Columbia: owned by Sony. $8 billion/year
•20th Century Fox: owned by News Corp (Rupert Murdoch). $33.7 billion/year
•NBC/Universal: owned mostly by Comcast (used to be owned by General Electric).
•Disney: largest entertainment company, biggest proﬁt margin. $42.2 billion/year
Top 10 ﬁlms in 2012:
10)Men In Black 3 (Sony, $624 mill.)
9)Hunger Games (Lion’s Gate, $686 mill.)
8)Madagascar 3 (Paramount, $742 mill.)
7)Spiderman (Sony, $752 mill.)
6)Twilight Saga (Summit, $829 mill.)
5)Ice Age (Fox, $875 mill.)
4)The Hobbit (Warner Bros., $980 mill.)
3)Dark Knight Rises (Warner Bros., $1.05 bill.)
2)Skyfall (Sony, $1.1 bill.)
1)The Avengers (Disney, $1.5 bill)
Other ways studios are making money:
•Ancillary rights- selling rights to TV, Netﬂix, etc. Selling dvd rights, syndication rights.
Selling to airlines, the military, collages. Selling song rights, book publishing rights.
Toys, games, costumes, etc.
•Product placement: took off after E.T. (Reese’s Pieces), now reaching all time high in
movies like Skyfall (Heineken, $45 million deal)