Sep

2

Ron Howard was on the Andrew Marr show commenting on Hollywood financing. He stated that every decision that a Hollywood executive makes now places his career on the line. And thus there is a significantly reduced level of risk taking and a focus on ever greater budgets to absorb the available capital (thus raising the stakes for any error made; a vicious circle). Hollywood has coalesced around star studded blockbusters. But this is a pool with diminishing returns available to the capital employed. This is a "big problem" he feels. Does this seem similar to any other industries and their method of capital allocation?


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