EXPLAIN THE APPEAL OF LOW TO MEDIUM BUDGET FILMS TO HOLLYWOOD CONGLOMERATES

Fox is a major conglomerate of the filming industry because it owns 17 stations branded under the “Fox” trademark and has bought out 175 small independent film companies that do not trade under the “Fox” trademark. Fox can also be seen as the dominating conglomerate of the film industry due to it recently purchasing one of the most successful and famous film companies, Disney, which is also a large conglomerate in the film industry due to owning Marvel, Pixar and the American Broadcasting Company.

“Hidden Figures” was a small budget film that cost $25 million to create and $6.88 million was spent on advertising, meaning a total of $31.88 million was spent on producing the film. However, Fox managed to create a total revenue of $236 million from producing the film, almost 9 times more the amount that they spent to create the film. The success of the film created with such a short budget can be down to reviews, while it was a small budget film, audiences were increased by the many good reviews from critics and the multiple awards it has won, both specifically for the film and for the individual cast members involved in the film. By creating multiple low budget films, Fox will have more funds that they can use to produce more films that will attract audiences and create revenue. For example, if Fox produce 1 large budget film and spend $150 million creating it, they may create a total revenue of $1 billion. However if they spend $25 million and create 6 films across different genres, they may create $250 million+ per film, in total that would equal 1.5 billion+. The more films they have out on the market, the more reviews they will get for their films and the more awards they are likely to earn from them. The more credit that Fox gets, the more people are aware of them, thus meaning they will attract more audiences. “Hidden Figures” has attracted a wider audience, especially the black community by including that minority and they also created a hybridization of the history, biography and drama genre in order to attract the audiences who enjoy them genres of films.

The success of “Hidden Figures” can also be down to the cultivation theory. As Fox owns Disney, the main dominator of the film industry, and Disney is known for its successful films, people will see that Fox owns Disney and have created a film, therefore, due to the successes of the Disney branded films, Hidden Figures must follow their production methods and be a successful film. Fox may also decide to follow a low budget film strategy due to the high profit potential that has been produced by the smaller film companies that have created a high revenue producing a low budget film.

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