With the new movie Rio coming out this month, it couldn’t have picked a better time to increase maximum revenues. The hit bird game of the decade, Angry Birds, stars birds that even look like characters of this exotic movie which is why producers of Rio are taking every chance they can to tie-in to the popular app by Rovio. This action serves as a perfect example of complements in the economic world, in fact Rovio has created a Rio version of the app to directly relate the two together. By creating this connection to allow the two to become complements, demand for both will increase greatly and show an outward shift in demand for these. It is already predicted that Rio will produce a profit of over $40 million beating its closest competitor Scream 4 expecting to earn $36 million. In addition to this increase in profit for the movie, the Rio version app of Angry Birds has already satisfied the demand for 10 million consumers selling for $0.99. This excess in demand is a great way to increase revenue and demand for both goods which the producers of Fox’s Blue Sky Studio could never have guessed would occur. Lucky for them however, the movie serves as a perfect complement to the hit app which both have increased in sales and will continue to increase in the near future.
Written by: Holly Williams
Written by: Holly Williams
It was really smart for the makers of Rio to take advantage of the game angry birds. Not only will the game increase the sale of the movie but after people see Rio people will be more encouraged to buy the app. It seems like these two items are the perfect compliments. Not only will the game help to advertise the movie but it will also create profits of its own. Many movies have video games and iphone apps to go along with them and it seems like it is starting to become the new standard. I see how the release of this game could create a higher demand for both the movie and the game which is what the producers hope to accomplish.
ReplyDeleteYes, hopefully this combination will continue to grow and maybe, in order to reach equilibrium, the price for the Rio version of Angry Birds will increase. I am uncertain however if there is a price ceiling on the app but if not, then Rovio should take every advantage to increase sales.
ReplyDeleteI agree with Catherine! That was so smart for the makers of Rio to take part in Angry Birds. Although, I think it can have both positive and negative effects. Beneficially, it will make more money for the Rio movie without having too much of a bad effect on Angry Birds. The only bad thing is that since the two games are compliments, many people will choose to buy only one or the other. (Except for the gamers who are obsessed with Angry Birds and have already beaten the game multiple times). Angry Birds could potentially loose money that they could be making if there were only one game.
ReplyDeleteSo in conclusion, it is good thing for Rio; whereas it might have a negative effect on the original Angry Birds.
Amber Stephens
I agree with the negative effects that Amber mentions above. With there being two games on the market, Angry Birds will most likely lose money because the demand for Angry Birds will lessen. Angry Birds has been on the market longer than the New Rio game has, causing the demand for the new game to increase, leaving Angry Birds at its regular level of sales. Buyers always want the new and improved product on the market, which in this case would be the Rio version of Angry Birds. In the eyes of Fox Blue Sky Studio's, having the Rio version of Angry Birds getting more popularity does not effect the profit of the studio. Both products aquire the sum of the whole studio's profit, so with Angry Birds already having its effect on the company, it is only beneficial for the company to make a product that will bring forth incoming profit.
ReplyDeleteEspecially with the Rio version of Angry Birds and the new Rio movie complimenting each other, all of us as bystanders can only predict a raise in demand for the movie which is already predicted to bring forth a profit of 40 million dollars.