Friday, April 16, 2010

Place Your Bets

If you think that what Hollywood needs is more suits, this is the plan for you.

Government regulators have approved the creation of a new commodities market that would trade on the projected revenues of movies; even though every one in the movie business has come out against it and part of the financial regulation bill currently working through the Senate would ban it.

Commodities trading has always seemed a little shady to me, but then applying that to a good that doesn't really follow supply and demand definitely sounds like a terrible idea.

The backers of this idea say it'll reduce risk and encourage investment in smaller, independent films, but to me this sounds like the opposite is more likely. where it would lead to more "safe" bland summer blockbuster-type films to help guarantee the projected outcomes. But then again maybe I don't understand it.

I'm sure that even though studios could potentially make a lot of money on such trading, they know that movies are a risky enough venture as it is and would rather keep things the way they are.

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