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You've just described Hollywood, the music business, but even the supermarket/distribution business. The middleman tends to accumulate all the profit.
by toyg 4mo ago
You've just described Hollywood, the music business, but even the supermarket/distribution business. The middleman tends to accumulate all the profit.
- badpun 4mo agoBig chain stores have their profit margins at below 5%.
- toyg 4mo agoBut they do it by squeezing businesses upstream, who end up with even lower margins.
- daedrdev 4mo agoThis means most of the profit goes to the consumer since every part of the retail chain has such little profits. Its common for retail to be as low as 3%
- quantified 4mo agoDownvoted, but because there is no "profit" to the consumer. We get cheap clothes of which some stand up well over time considering the cost.
- johnvanommen 4mo ago> But they do it by squeezing businesses upstream, who end up with even lower margins. I've done tech projects for supermarkets and I've done tech projects for movie studios. The thing I noticed about Disney is that they have an entire 'suite' of products. Basically, they can afford to lose money on a movie release if it drives toy sales, or drives attendance at Disneyland or Disneyworld.