Professor Elam

IN the cost class in Chapters 5-6 we will be studying break even and cost volume profit analysis.  Nowhere is this a more interesting consideration than in movie making.  One is constantly battling the cost of the movie production to obtain a realistic depiction of fiction, while balancing that with the need to make a profit on the movie.  And today there are more considerations, such as, if we don’t make it at  the box office, how well will the DVD and home rentals do?

No one has been more successful at making money on a budget than Clint Eastwood. His new film,
Flags of Our Fathers , tells three different stories.  One is the story of the invasion of Iwo Jima, a second is how the ‘heroes’ of that invasion are used to sell War Bonds to the country, and of the author’s discovery of his father’s role in the war.  Eastwood’s interest led to a second movie which may be even more interesting, the story of Iwo Jima from the Japanese point of view.

Eastwood, known for economy in film making, spent $90 M  on Flags and $20 M on Letters from Iwo Jima.  Click on the link above to read about this, very interesting.  Also remember my previous post about Talent Management.  Eastwood is known for using the same crew as they know what he wants in a movie. Moreover, Malpaso has as its moniker, only using tightly budgeted scripts  to minimize costs as well as preferring location over studio shooting.  Think about this story versus the often cost overruns in Hollywood. 

Gee would you have thought of Clint Eastwood as a cost accountant?

DLE