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28_DiscussionQuestions2 - ACCY 302(Chen Class 27 Fall 2009...

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ACCY 302 (Chen) Class 27 Fall 2009 Illini Movie Studio The Illini Movie Studio is trying to decide how to distribute its new movie Accountants Gone Wild . The movie has the potential of being a great financial success (a "smash"), but the Illini executives are not sure because the subject is very controversial --- and they have seen some films heralded as "smashes" become "flops" with disastrous financial consequences. The decision facing Illini is whether to initially release the movie Accountants Gone Wild on a limited first run basis. This means that the movie will show only in a few select theaters during the first six months. After six months it will be released generally. If the movie turns out to be a “smash”, this is clearly the best approach because the studio makes considerable profit from these select theaters. The other alternative is to release the film for wide distribution immediately.
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