Jason Blum's Blumhouse Productions
In March 2017, Jason Blum, the founder and chief executive officer of film and television production company Blumhouse Productions, has another blockbuster on his hands with the movie Get Out, produced for just $4.5 million. Remarkable returns for its micro-budget films were nothing new for Blumhouse. In fact, in recent years, Blum and his team were responsible for more such outsized successes than any other producer, especially in the horror genre. The company’s approach to moviemaking is quite different from that of the major studios: it is not afraid to bet on projects that other studios have passed on, it pays its key cast and crew members the minimum salary stipulated by industry unions and only pays out sizeable bonuses if a movie’s box-office reaches certain levels, it gives its directors a great deal of creative control, and it decides on a film’s release strategy only once the first cut is ready. Has Blum discovered a robust formula for success in the film business? And is his approach sustainable, even as other players in Hollywood might seek to copy Blumhouse’s strategy?
Keywords: entertainment; media; film; movies; Creative Industries; product-portfolio management; entrepreneurship; innovation; Talent; general management; strategy; marketing; blockbusters; Film Entertainment; Innovation and Management; Talent and Talent Management; Competitive Strategy; Management Style; Marketing Strategy; Motion Pictures and Video Industry;
Citation:
Elberse, Anita. "Jason Blum's Blumhouse Productions." Harvard Business School Case 518-103, May 2018. View Details