Blockbusters

Anita  Elberse

Book | 2013

Blockbusters: Hit-making, Risk-taking, and the Big Business of Entertainment

Abstract

What's behind the phenomenal success of entertainment businesses such as Warner Bros., Marvel Enterprises, and the NFL—along with such stars as Jay-Z, Lady Gaga, and LeBron James? Which strategies give leaders in film, television, music, publishing, and sports an edge over their rivals? In this book, drawing on my case studies and other research on the worlds of media and sports, I explain a powerful truth about the fiercely competitive world of entertainment: building a business around blockbuster products—the movies, television shows, songs, and books that are hugely expensive to produce and market—is the surest path to long-term success. Along the way, I reveal why entertainment executives often spend outrageous amounts of money in search of the next blockbuster, why superstars are paid unimaginable sums, and how digital technologies are transforming the entertainment landscape. Full of inside stories about some of the world's most successful entertainment brands, Blockbusters is aimed at anyone seeking to understand how the entertainment industry really works—and how to navigate today's high-stakes business world at large.

Keywords: entertainment; business; strategy; media; Sports; Digital technology; blockbuster; superstar; film; television; music; publishing; performing arts; nightlife; Risk and Uncertainty; Technology; Marketing Strategy; Music Entertainment; Success; Sports; Business Strategy; Film Entertainment; Television Entertainment; Music Industry; Fine Arts Industry; Entertainment and Recreation Industry; Publishing Industry;

Format: Print

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Citation:

Elberse, Anita. Blockbusters: Hit-making, Risk-taking, and the Big Business of Entertainment. New York: Henry Holt and Company, 2013.

“Our goal is to be the kind of start-up that would terrify Nike—if Nike didn’t already own us.” Ron Faris, general manager of S23NYC, a Manhattan-based digital studio owned by sports apparel giant Nike, is on the phone with Adam Sussman, Nike’s chief digital officer. It is June 1, 2018. Two years earlier, Sussman was behind Nike’s push to acquire Virgin Mega, a startup comprising Faris and his small team, which has since morphed into a studio that plays a pivotal role in Nike’s digital strategy. With the studio’s mobile app, SNKRS (pronounced “sneakers”), specifically, Nike seeks to strengthen its connection with the most fanatical of its fans—the sneakerheads—and “bring back the fun and emotion of buying,” as Sussman put it. Is Nike on the right path with its digital strategy and, in particular, with how it seeks to change the sneakers game and compete with rivals such as Adidas and Puma? Does it make sense for the company to pursue the kinds of innovations featured in the SNKRS app? And what kind of campaigns and activations should it prioritize in the future?

World Wrestling Entertainment, Inc. (WWE) develops and presents scripted hero-versus-villain storylines featuring its wrestlers at hundreds of live events, on several weekly television shows, on its own over-the-top streaming service, and on social media, to millions of fans around the globe. In January 2018, buoyed by the $800-million-dollar company’s strong prospects for further growth, WWE’s chief brand officer Stephanie McMahon and her husband, Paul ‘Triple H’ Levesque, a WWE wrestler who also serves as the company’s executive vice president of talent, live events, and creative, are discussing whether to add Ronda Rousey, who has made a name for herself as a judoka at the Olympics and as a mixed martial artist in the Ultimate Fighting Championship (UFC), to WWE’s roster. Should WWE try to sign Rousey, and, if so, what kind of offer makes the most sense? And is WWE well positioned for further success in the world of entertainment?

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?

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Blockbusters: Hit-making, Risk-taking, and the Big Business of Entertainment

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