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Old 26th June 2014
Lives for gear
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Originally Posted by Jules View Post
Where are the millionares (who dont need to make a profit) when we need them?

Some big companies should own these places simply to be cool..

But I suppose it's hard to sell that concept to accountants and shareholders..

Come on, millionaires are not rich. Maybe $20 mil+ and you aren't going to care to much about a major studio that bleeds. Under that people are still worried about losing it and retirement (believe it or not).

But essentially that is what billionaires do with major sports teams. Many in the states do not make a profit, although their terminal value does rise over a decade in line with TV advertising and the multiple on revenue - which you definitely don't get with studios.

If I may - - would say that the "major studio" market should be best salvaged by major celebrities or artists who have both $$ and a name that can draw potential clients.

I would parallel the model more with restaurants - - a pet project, maybe you make some money, maybe not - but shepherd over a place for fun and expect it to be worth nothing in due time.

Let's see - - how about a major recording studio owned by a big name celebrity that does real sessions during the week but on the weekend (Thurs, Fri, Sat nite) does an exclusive high end dinner in situ where there is entertainment in a real setting (kind of like how people are paying up to eat in the chef's kitchen now - a raw and real experience). A cross between "sessions on W 54th" and "chef's table" in the live room, and everyone leaves with the live recording.

I don't know how else to keep these bleeding boat anchors alive. Ashford and Simpson have a restaurant / bar with stage on the Upper West Side of NYC (i think it does quite well), but maybe a little more star power in a real studio where people can get behind the drums, touch some equipment, move a few faders of a known artist. Target market would be some of the multimillionaire / billionaires you see at events like Unicef - which BTW draws a massive corporate crown buying tables. They love celebrities since their life is so boring and it can be written off as client entertainment.