By Colin Whitlow
In this guest Filmonomics post adapted from his initial think pieces on the Cinema Research Institute (CRI) blog, CRI 2014 fellow Colin Whitlow explains why the film industry would benefit from a dedicated performance index – and how he is approaching building just such a valuable tool.
The film industry is weakened by the absence of an objective, transparent measuring tool for would-be film investors. Many mature industries have created an index to help the investment community get a read on the sector’s financial climate. The Dow Jones Industrial Average, a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq, serves as a real-time proxy for mainstream financial market activity and economic health. The Case-Shiller Home Price Indices, calculated and kept monthly by the statistical rating organization Standard & Poor, are well-respected indicators of real estate performance in the U.S. Even esoteric asset classes such as fine wine and collectible art have their own benchmarks. But the film industry has no such like-for-like barometer.
