The Price of Fame

Welcome back, everyone! This week we’re rolling out the red carpet for you pricing people to take a look at the business of Hollywood. So grab some popcorn and don’t change the channel.

Lights, Camera, Profit!

The Oscars aren’t just the biggest night in the awards calendar – it’s a financial powerhouse bringing a phenomenal $170 million to the US economy.

Behind those golden statues lies a golden business model. Broadcast live in more than 200 countries and territories, the Oscars is one of the most-watched television events in the world. ABC reportedly pays around $75 million annually for the US broadcasting rights. And the cost of a 30-second ad during the Academy Awards reached $2.2 million. That’s over $73,000 per second – more expensive than some movie budgets.

The Real Cost of Glitz and Glamor

The race to the podium isn’t cheap either. Studios shell out millions to get their pictures in the running, with some reportedly spending up to $25 million on their campaigns last year. That might explain some of those streaming service price rises…

For the winners though, it’s payday. Actors in key categories are estimated to be able to raise their prices by 20% after taking home a gong. That’s brand pricing power.

Award-Worthy Goodies

Even those that don’t come out on top, don’t go home empty-handed. This year’s infamous six-figure goody bags contain among other things, liposuction treatments, luxury spa breaks and a coffee table book worth a mind-boggling $950. Sadly, these exclusive perks are only on offer to nominees in the highest-profile categories. You know what they say, it’s not show-friends, it’s show-business.

The economics of Hollywood might be as dramatic as the movies, but your pricing doesn’t have to be. If you’re looking for a blockbuster approach to pricing that deserves its own standing ovation, get in touch today. Until next time, power to you pricing people!