Paramount Pictures: the Transformers Dilemma Essay example

966 Words Mar 26th, 2013 4 Pages
Paramount Pictures: The Transformers Dilemma - Case Analysis

The dilemma faced by Paramount pictures was to decide what changes, if any, should be made to Transformers 3: Dark of the Moon’s release date, best promotion strategy, and anticipate the rival Warner Brothers’ move.
Each competitor probably had three options to choose from for the respective release dates. Paramount could consider moving the release date two weeks ahead to June, stay with the original July 1st weekend tentative date, or move the date to fall season. Similarly, Warner Brothers’ could choose to move Harry Potter and The Deathly Hallows Part 2’s date ahead to the July 1st weekend, stay with the original date or move the date to fall.
As shown in Exhibit 1, we
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Now we’re looking at the option of Paramount releasing Transformers 3 on the originally decided July 1st weekend. This move can be supported with the data we have from history when movies from the Harry Potter series were released twice, each in the summers of 2007 and 2009, two weeks after the release of Transformers 1 and 2. In both the occasions, domestic gross as collected by Paramount was greater than that of WB at - $320M vs. $292M and $400M vs. $301M. Also, in the history of Harry Potter releases, the franchise had not fared too well in the summer releases as against fall releases which would give Paramount a little more confidence.
Hence, the best strategic move for Paramount would be to stick with the original release date and work on customizing its pre-release marketing. Paramount should invest in laying emphasis on the superiority of its 3D technology and invest in educating the customers to better identify high quality 3D movies from the low quality ones. It would also be wise for Paramount to relay the first two parts of the Transformers’ series either on television or in theatres just before or during the release week of Transformers 3. We should be ready to brace the fact that revenues will be split with WB, but we should try to maximize the gross openings’ earnings and try to lure theatres to give Paramount major share of 3D and IMAX screening space.

| Warner Brothers’ Strategy | ParamountPictures’Strategy | | Early (July 1) |

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