Large media companies typically invest a significant amount of resources into creating and promoting just a handful of titles that they believe have the potential to become major hits. They rely on these high-profile releases to drive sales and generate substantial revenue, which helps to offset mediocre performance from their other products in the catalog.
On a deeper level, this quote highlights the risk-taking nature inherent in the media industry. By focusing heavily on a few key titles, companies are essentially placing large bets that these specific works will succeed commercially. This strategy can be highly profitable if successful, but it also leaves companies vulnerable to significant financial losses should those anticipated hits fail to meet expectations. Additionally, this approach can lead to an imbalance in the market, where resources and attention are disproportionately allocated to a small number of titles, potentially overshadowing lesser-known works that might otherwise succeed with more targeted marketing efforts.
The quote is attributed to Anita Elberse, a professor at Harvard Business School and author known for her research on media and entertainment industries. Her work often examines the business strategies employed by major firms in these sectors, including the risks and rewards associated with investing heavily in blockbuster titles versus maintaining a broader portfolio of products.
