Creating a business requires extensive research and planning, but, as Walden Media President Michael Flaherty told about 25 Boston University students Friday, ‘it’s all about risk-taking.’
Walden Media is a film production and publishing company that has been credited with movies including ‘The Lion, the Witch and the Wardrobe,’ based on C.S. Lewis’ ‘Chronicles of Narnia,’ and ‘Holes,’ based on Louis Sachar’s book of the same title.
Flaherty gave a lecture about entrepreneurship and the film industry. He told students about an old friend who he and others thought was mad when he set out to create a company that would only make 3-D movies.
‘It seemed like a lunatic idea that could never really work, but he was convinced it would. We really thought of making an intervention,’ he said.
Flaherty’s friend Joshua Greer now owns RealD, a leader in the 3-D industry, Flaherty said.
‘When it comes to making your business, of course you need experts’ advice, but at some point, you have to go with your gut,’ Flaherty said.
Flaherty encouraged students to pursue their own entrepreneurial dreams despite hard economic times.
‘When we first created Walden Media, we were also in a down environment . . . We succeeded,’ Flaherty, referring to the economy in 2000, said. ‘Please don’t be discouraged by this economic crisis.’
When ‘Ray,’ the 2004 film based on musician Ray Charles’ career, was first pitched, experts predicted a profit of no more than $2 million, Flaherty said.
‘They first said biographies couldn’t earn more than X million dollars, and that African-American biographies could earn even less,’ Flaherty said. Ray earned close to $120 million.
The movie industry today is not only facing the problem of predicting which movies will be successful, but how to advertise and market movies.
‘A good promotion is essential for the success of a movie, whether it’s a good or bad movie,’ Flaherty said.
Flaherty estimated that today, an average of 90 percent of advertising budget is spent on television,
‘Tell me who of you owning a TIVO or DVR actually watch TV ads,’ Flaherty asked the audience. ‘Exactly, so that’s already 90 percent of advertising money thrown out of the window.’
Flaherty said although the Internet has created challenges for a number of industries– including the movie and the music industries– the Internet presents unique opportunities.
‘Movie industries are now looking for people with new ideas for advertising and promoting, who know how to take advantage of the new media,’ Flaherty said.
Flaherty’s presentation attracted students from a variety of schools.
‘I realized business is not just for business students,’ BU Entrepreneurship Club Vice President Kabir Agarwal said after the lecture he helped organize.
‘It was great seeing non-SMG students as well,’ Agarwal, a School of Management senior, said.
Ralph Shao, a senior’ in the College of Arts and Sciences and SMG, said he attended the lecture to learn about something other than the film industry.
‘I myself am not interested in movies, but think that networking is great, which is why I came,’ Shao, who is also in SMG, said.
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