Originally Posted by
Xyril
Look, I'm not without some experience in the field of uncertain decisions involving fairly large amounts of money, and I'm telling you, the smart choices change based on the size of the gambles as a proportion of your total resources. If you're a producer who can afford to invest in only one or two movies at a time, then certainty has a higher priority--getting wiped out doesn't just mean losing a lot of money, it means losing most of your future opportunities to make money. If you're a big enough studio with either a lot of capital on hand, or a tremendous pool of consistent investors, then you can start acting like the hedge fund of movie producers. You can take more high risk, high reward ventures because you're investing in so many that even if a few fail spectacularly, the rest will make good your losses, and then some. You can literally hedge--for example, by investing in a less popular niches that are likely to do well if an unexpected shift tanks the safe bets. More uniquely to mass market industries, they're also in a better position to turn intangible benefits into tangible gains.