Summary
Economic Reality is the only key to a successful production studio and Spielberg while a man of extraordinary talent and success cares little for economic reality and that is why he cannot be trusted.
Analysis
The big question is: "who doesn't love Stephen Spielberg?"
In originality and sheer volume of work Spielberg is the most successful writer-director of the 20th century. In production he is a man of exceptionally well practiced vision and speed both of which are radically important to work-flow and productivity. It is when it comes to economics Spielberg shows his weakness.
Stephen Spielberg is old school when it comes to production. On the last Indiana Jones move he shot on location and used film. The production costs were fifty to one-hundred-million dollars higher then they needed to be. Because Spielberg is old school he decided that the movie's success would justify its costs. He did nothing to control costs when many well tested, effective and successful options were available to him. The idea that the profit margin, no matter where it ended up, was going to be $50 to $100 million shorter than it needed to be was an issue of no consequence to Spielberg. When it comes to economics Mr. Spielberg reckless and someone looking to invest should be very careful of. When he crashes; and they all do at sometime, it will be huge. It will be another "Water World" from Hell production.
Additionally, in the Hollywood System Spielberg grew up in he is institutionalized. He has no problem with the Unions and Sub-Contractors of Los Angles feeding off of him. As a result he could not make a successful film production for under $20 million if he wanted to. So as a creative movie director his visions have no equals. As a manager and executive of industry he cannot be trusted and it's a mistake for anyone to give him the benefit of the doubt because, just like Indiana Jones, no matter what profit margin he delivers it is always going to be less than it should have been.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
