The Mark Cuban Post - Part II

I'm really fascinated by this post - and the comments associated with it. Here's where I'm going with it....

Mark Cuban is thinking about a simple business problem he has -- how do you lower the cost of customer acquisition within the movie business. His problem - spending more to "get" a customer than you receive from sales. Really, this is the age old question of business - if you spend more than you make, you are running your company at a loss, if you make make more money than you spend, you are running your company at a profit - real Business 101 stuff.

Now, his dilemma is that if a movie doesn't do a huge first weekend box office, than it will probably quickly fall off and be in your local video store. But the dynamics of the market are much bigger than just trying to figure out how to create "buzz" and spending advertising money better or focusing on niche audiences, etc. The market is about alternatives and substitutes - something Mark should be aware of, since on of his other ventures would be a "substitute" to going to a theater to see a move.

I believe the movie industry is trying to figure out what it wants to be when it grows up -- or maybe a better way to say this is - the market has changed (no surprise) - 30-25 years ago, going to the movies was one of only a handful of entertainment options - today, there are hundreds of entertainment options. Going to a movie, was an event for most families - and was special. Over the past two decades, with the creation of the Megaplex - going to the movie is a lot like goint to the mall (and in many cases, it's the same place).

Personally, I believe if you want to make movies - you make them because you LOVE making movie - there are people that would make a movie even if no one saw it - they love making movies. I don't know if Mark Cuban love making movies, my personal assumption is that he's in it for other reasons. Because if loved making movies, he would have become a move mogul instead of a technology mogul.

So my suggestion to Mark (no job required) is to get out of the movie making business - I don't really believe you love it and it's just going to drive you crazy.


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