Two firms are reportedly seeking regulatory approval from the Commodity Futures Trading Commission to establish new futures exchanges that would enable investors to bet on the future box office performance of upcoming Hollywood films. They apparently expect approval within the next couple of months. You can read the entire Los Angeles Times article about this HERE.
One of the firms is a start-up from Indiana. But the other is the well-known Cantor Fitzgerald. According to this article, the two firms "hope they can harness the national obsession" with box office performance, "to create a safety net for the risky and expensive business of producing movies." Why does this bring to mind The Music Man? Or Mel Brooks' The Producers?
"It also remains to be seen," the article goes on to say, "whether studios and producers will be willing to bet against, or short, their own films. In a business where relationships and reputation are crucial, such a move carries more risks than just losing money."
Thursday, March 11, 2010
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