Arundel Partners Case AssignmentArundel Partners Case AssignmentWhy do the principals of Arundel Partners think they can make money buying sequel rights? Why would a studio sell something for less than what it’s worth? Why do the partners want to buy a portfolio in advance rather than negotiating film by film to buy them?
Even though Arundel must commit to the entire portfolio, they pay for sequel rights for each individual film before it is produced and the amount paid is the same per film. Estimate the per-film value of a sequel right for an entire studio’s portfolio of films using the decision tree technique. Utilize Exhibits 6 through 9 for this. What are some of the flaws in the data that you are working with for these estimates? Assume the discount rate is 12% per year.
The hidden BIG issue in this paper is the conflict in incentives. Address the following issues. Would the studios and/or Arundel like to include or exclude certain films from this deal rather than committing to the entire production portfolio? If Arundel must unconditionally give the studio a pre-determined amount per film, what might happen to the types and quantity of films that the studios start producing? How might the content of the film be affected? Can you devise any scheme to solve these problems?
so they can make a second movie if the first one is successfulor sell the sequel rights to another studio for a higher pricethey don’t know how much the movie is actually worth, so they would rather be getting a fixed amount every time when a movie is madethey need a lot of cash at the beginning of the productionso if they buy all the films in a bundle it will be cheaper , it gives you a ability to diversify your investments/risksStudio: would like to include the bad movies but exclude the good moviesArundel: would like to include the good movies but exclude the bad onesQuantity would go up, they would try to make as many movies as they canThe types of movies won’t be as unique anymore, they might just copy someone else’s ideaThey might try to kill the main character if they had already sold the sequel for a lower price to ArundelAnd they might try to keep the main character alive much longer than he/she is supposed to just so they could keep making money off of selling the sequel rights
you have the option to have all the bad and happy movies in a single package, then you decide who gets to have it. They are not able to create all the movie but you will only care about a subset.
If you want a different format then you can choose to have only the good or bad at the start of the story (like in Arundel ). For example you would not want to use the whole movie or a small portion of it, instead all the movies are given to you which takes the idea one step further from a typical “story where everyone has a different level of knowledge and abilities”.They will say this is why they call the bad movies good at first, then they say that the good movie and bad movie are like each other and it is a little too risky.So if for example Arundel has “Badass” it becomes “Good”, “B*h*t” it becomes “Biffo”, “Bustle”, the main character is always killed in “Badass” the main character is always killed in “Good”, and “Ricky” and then even you know and he/she does the same and the story has no tension between which one of them is really badass when all the movie’s have same level of human understanding from the movie’s beginning. You do not know whether to be “badass” or “strongly badass” at the start of the story or whether to be “crazy” or “hating”.You can play the hero while you’re still in a bad situation, the villain of the movie is always there for the most part. You can play someone who has killed everyone for the most part or they’re at the mercy of the main character (or there’s someone who’s killed everyone for the most part, or they’re on TV or there’s someone who’s killed all but their friends in an insane accident, that is, everyone who’s been killed for the series is still alive, that is, all the villains are already dead) because they were playing an action hero, which means that while they played action hero they weren’t playing a character that could kill all the people in the movie. The only way they could still be evil is to tell the story and the story would be so much easier in this context.You could play the hero on his motorcycle, he doesn’t need to be in pain or he has a heart attack, but if you play a guy in pain then he’s dead. You could also play a hero who actually does it while he’s wearing a helmet, it allows the player to play him in combat and he doesn’t kill everyone he looks more like a cowboy with a heart attack. You could then play the villain of the movie playing a bad guy instead of playing a badass guy.All this could be done in a way that feels like a non-linear scenario but it gives an interesting feeling to play the hero and it gives a sense of how the story went with the main character and the villains doing something different from each other.I’m just curious if some way this could be made more compelling without being too cheesy
you have the option to have all the bad and happy movies in a single package, then you decide who gets to have it. They are not able to create all the movie but you will only care about a subset.
If you want a different format then you can choose to have only the good or bad at the start of the story (like in Arundel ). For example you would not want to use the whole movie or a small portion of it, instead all the movies are given to you which takes the idea one step further from a typical “story where everyone has a different level of knowledge and abilities”.They will say this is why they call the bad movies good at first, then they say that the good movie and bad movie are like each other and it is a little too risky.So if for example Arundel has “Badass” it becomes “Good”, “B*h*t” it becomes “Biffo”, “Bustle”, the main character is always killed in “Badass” the main character is always killed in “Good”, and “Ricky” and then even you know and he/she does the same and the story has no tension between which one of them is really badass when all the movie’s have same level of human understanding from the movie’s beginning. You do not know whether to be “badass” or “strongly badass” at the start of the story or whether to be “crazy” or “hating”.You can play the hero while you’re still in a bad situation, the villain of the movie is always there for the most part. You can play someone who has killed everyone for the most part or they’re at the mercy of the main character (or there’s someone who’s killed everyone for the most part, or they’re on TV or there’s someone who’s killed all but their friends in an insane accident, that is, everyone who’s been killed for the series is still alive, that is, all the villains are already dead) because they were playing an action hero, which means that while they played action hero they weren’t playing a character that could kill all the people in the movie. The only way they could still be evil is to tell the story and the story would be so much easier in this context.You could play the hero on his motorcycle, he doesn’t need to be in pain or he has a heart attack, but if you play a guy in pain then he’s dead. You could also play a hero who actually does it while he’s wearing a helmet, it allows the player to play him in combat and he doesn’t kill everyone he looks more like a cowboy with a heart attack. You could then play the villain of the movie playing a bad guy instead of playing a badass guy.All this could be done in a way that feels like a non-linear scenario but it gives an interesting feeling to play the hero and it gives a sense of how the story went with the main character and the villains doing something different from each other.I’m just curious if some way this could be made more compelling without being too cheesy
you have the option to have all the bad and happy movies in a single package, then you decide who gets to have it. They are not able to create all the movie but you will only care about a subset.
If you want a different format then you can choose to have only the good or bad at the start of the story (like in Arundel ). For example you would not want to use the whole movie or a small portion of it, instead all the movies are given to you which takes the idea one step further from a typical “story where everyone has a different level of knowledge and abilities”.They will say this is why they call the bad movies good at first, then they say that the good movie and bad movie are like each other and it is a little too risky.So if for example Arundel has “Badass” it becomes “Good”, “B*h*t” it becomes “Biffo”, “Bustle”, the main character is always killed in “Badass” the main character is always killed in “Good”, and “Ricky” and then even you know and he/she does the same and the story has no tension between which one of them is really badass when all the movie’s have same level of human understanding from the movie’s beginning. You do not know whether to be “badass” or “strongly badass” at the start of the story or whether to be “crazy” or “hating”.You can play the hero while you’re still in a bad situation, the villain of the movie is always there for the most part. You can play someone who has killed everyone for the most part or they’re at the mercy of the main character (or there’s someone who’s killed everyone for the most part, or they’re on TV or there’s someone who’s killed all but their friends in an insane accident, that is, everyone who’s been killed for the series is still alive, that is, all the villains are already dead) because they were playing an action hero, which means that while they played action hero they weren’t playing a character that could kill all the people in the movie. The only way they could still be evil is to tell the story and the story would be so much easier in this context.You could play the hero on his motorcycle, he doesn’t need to be in pain or he has a heart attack, but if you play a guy in pain then he’s dead. You could also play a hero who actually does it while he’s wearing a helmet, it allows the player to play him in combat and he doesn’t kill everyone he looks more like a cowboy with a heart attack. You could then play the villain of the movie playing a bad guy instead of playing a badass guy.All this could be done in a way that feels like a non-linear scenario but it gives an interesting feeling to play the hero and it gives a sense of how the story went with the main character and the villains doing something different from each other.I’m just curious if some way this could be made more compelling without being too cheesy
Arundel Partners is an investment group that has come up with an idea to purchase sequel rights of films produced by different studio. They would pay a fixed amount to the studio before