The Problem

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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.

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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.

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SEQUELS AND REMAKES

Risk-averse studio executives remain dependent on the cycle of sequels and remakes, even though it is showing signs of diminishing returns.

These costs are over and above the tremendous overhead built in to 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.

To address these problems, Gramarye is reinventing the studio.