Institutions & Audiences

The Film Industry – Section B

Brainstorm!

Marvel Studios

• Formed in 1993.• A subsidiary of Marvel Entertainment.

• Initially, the studio had only moderate success, producing mainly animated films. • Why do you think this was? What challenges do you think there

were to producing live-action adaptations of Marvel comic books?

Marvel Studios

• Formed in 1993.• A subsidiary of Marvel Entertainment.

• Initially, the studio had only moderate success, producing mainly animated films. • Why do you think this was? What challenges do you think there

were to producing live-action adaptations of Marvel comic books?

CEO of Marvel Films Avi Arad undertook a significant reorganisation and restructuring of the studio in December 1996. He said the following: “When you get into business with a big studio, they are

developing a hundred or 500 projects; you get totally lost. That isn't working for us. We're just not going to do it anymore. Period.”What are some of the issues raised by this quote?

Marvel Studios

•Marvel Studios enjoyed great success in the early 2000s.• But could not afford

to produce and distribute its own films.

X-Men (2000)

Spiderman(2002)

Daredevil (2003)

Marvel Studios

• Marvel Studios enjoyed great success in the early 2000s.• But could not afford to

produce and distribute its own films.• It ‘licensed’ other major

studios to produce films based on Marvel products.

X-Men (2000)

Spiderman(2002)

Daredevil (2003)

Marvel Studios

• In 2006, Marvel Studios made the decision to PRODUCE & DISTRIBUTE its own films, as it green-lit Iron Man.• This is an example of VERTICAL INTEGRATION.

Marvel Studios

• In 2006, Marvel Studios made the decision to PRODUCE & DISTRIBUTE its own films, as it green-lit Iron Man.• This is an example of VERTICAL INTEGRATION. Production

Distribution

Exhibition

Marvel Studios

• In 2006, Marvel Studios made the decision to PRODUCE & DISTRIBUTE its own films, as it green-lit Iron Man.• This is an example of VERTICAL INTEGRATION.

•Why did they do this?•What are the advantages of this approach?

Production

Distribution

Exhibition

Hello?

Hello?

Hello, is this Marvel Studios?

Hello?

Hello, is this Marvel Studios?

Speaking.

Hello?

Hello, is this Marvel Studios?

Speaking.

In December 2009?

Yes. Who am I speaking to?

Yes. Who am I speaking to?

Walt Disney here. We are looking to acquire Marvel Studios.

Yes. Who am I speaking to?

Walt Disney here. We are looking to acquire Marvel Studios.

I see. Because of all the success we’ve been having?

Yes. Who am I speaking to?

Walt Disney here. We are looking to acquire Marvel Studios.

I see. Because of all the success we’ve been having?

Yes. We’re willing to pay $4bn...

O M G

O M G

O M G

Perhaps we could agree a takeover deal for $4bn on 31st December 2009, but first I will need to discuss the decision with the board…

Perhaps we could agree a takeover deal for $4bn on 31st December 2009, but first I will need to discuss the decision with the board…

Take up the role of Marvel Studios’ board of directors.Consider reasons why you should agree to the takeover (advantages) but also reasons why you should decline (disadvantages).

Marvel Studios was bought by The Walt Disney Company for $4bn on

31st December 2009

Marvel Studios was bought by The Walt Disney Company for $4bn on 31st December 2009

• This is an example of HORIZONTAL INTEGRATION.

•What are the advantages and disadvantages of horizontal integration?

Marvel Studios was bought by The Walt Disney Company for $4bn on

31st December 2009

• Budget for Iron Man (2008) = $140 million

• Budget for Iron Man 2 (2010) = $200 million

Marvel Studios was bought by The Walt Disney Company for $4bn on

31st December 2009

• Research the following films.• Make a note of the BUDGETS and GLOBAL BOX OFFICE

TAKINGS.• Plot a graph for each!

• Fantastic Four (2007)• Iron Man (2008)• Wolverine (2009)• Iron Man 2 (2010)• Thor (2011)

• The Avengers (2012)• Iron Man 3 (2013)

• Guardians of the Galaxy (2014)

Research Task: