April 17, 2005

All About the Dollars Dept.

ENTERTAINMENT WEEKLY has a really interesting story up about expensive perks given to celebrities. Not so much because of the perks -- but because of the interesting financial analysis related to them.

Apparently, an amazing 5 pc of the price associated with certain entertainment goods and services (e.g. a movie ticket, or compact disc) is directly related to the extravagant offerings such firms must offer their top-tier talent. However, that's 5 pc that could go to the bottom line -- and it seems the companies are noticing that top stars don't necessarily make a top-quality product. Hopefully, the firms will take a closer look at their practices and decide to spend more cash where it seems to count -- on new talent, more experienced crew, better effects, etc.

Posted by Benjamin Kepple at April 17, 2005 10:59 PM | TrackBack