The Problem

There’s too much cost and waste baked into the traditional Hollywood studio model. We have a handle on that.

icon-cost-org

AMORTIZED SUNK COSTS

To start a major film studio from the ground up, one would usually start with a development fund of between $20 million to $50 million. This is used to develop slates of films, most of which are never made. This is a “sunk cost” that must be amortized in the films that are actually produced.

icon-question-org

UNRELIABLE BIG DATA

Hollywood spends anywhere from $250,000 to $5 million on big data analytics before greenlighting a film … without uncovering anything that is reliably predictive. Our model focuses on direct, primary observation of actual audience interaction with a specific story, not voodoo analytics or surveys subject to cognitive bias.

icon-remake-org

SEQUELS AND REMAKES

Risk-averse studios remain dependent on the cycle of sequels and remakes, even though it is showing signs of diminishing returns. As financial analyst Vasily Karasyov of J. P. Morgan said, “the cycle of sequels and remakes have played out,” and “films based on previous intellectual properties present a growing risk to industry profitability.”

These costs are over and above the tremendous overhead built into the decades-old studio system, including dated infrastructure, legacy staff, libraries of expensive content stuck in development hell, and more. These are costs that Gramarye Media, operating as a “virtual studio,” eliminates.

Our model is different and disruptive. We mitigate risk and reduce production costs … while opening new streams of revenue.

To address these problems, Gramarye is reinventing the studio.