It transpires that Hollywood is set to join forces with speculators to create a futures market similar to that which allows punters to bet on the price of pork bellies.
The new market, called the Trend Exchange, will, before a film opens, invite investors to buy a contract that projects the takings for that movie up to a certain date. If the film does better than the figure on the contract, investors makes money. If it does worse then they lose their shirts (or parts thereof). Get it?
“Like all Americans, we cherish the entertainment industry,” said Robert Swagger, CEO of the Trend Exchange. “We believe that our products, designed in partnership with the broad industry constituency, will help better manage economic uncertainty and financial volatility, thus enhancing opportunities for success.”
However, the Motion Picture Association of America, the studios’ representative body, feels such speculation could damage the industry. Howard Gantman, MPAA spokesman, argued that such a movie casino could “cause real financial harm to both the film industry and other Americans drawn in by an online gaming platform that could be easily manipulated”.
Well, duh. It’s not as if the financial markets haven’t caused enough mayhem over the last five years.
Swagger is particularly keen to have the body up and running before the release of (bull or bear?) the star-packed action flick The Expendables.
