Movie Co-Financing Model

Thomas Tull built a successful movie financing company (Legendary Entertainment) by applying data analytics and strategic partnerships to film production. He brought a "Moneyball" approach to the movie business, using data to inform both film selection and marketing.

Key Elements:

• Initial Setup:

  • Raised $500M in startup capital
  • Partnered with Warner Brothers to co-finance 30 movies
  • Built a 50-person applied analytics team

• Film Selection Strategy:

  • Focus on bigger budget films with guaranteed commercial appeal
  • Lean heavily into licensed IP and mainstream actors/directors
  • Target simple plots that translate well internationally
  • Prioritize films with clear marketing hooks

• Marketing Innovation:

  • Double the production budget on marketing (e.g., $150M film = $150-200M marketing)
  • Use performance marketing techniques vs traditional brand advertising
  • Test 50 versions of trailers using biometric data:
    • Facial recognition scanning
    • Heart rate monitoring
    • Audience reaction tracking

• International Focus:

  • Specifically targeted Chinese market
  • Created joint venture with China Film (state-owned company)
  • Designed films to cross language/cultural barriers
  • 50/50 partnership for distribution in China

• Results:

  • Produced successful franchises like Batman, 300, Hangover, Dune
  • Sold company for $3.5B to Chinese investors
  • Only achieved profitability in 2 years but had massive hits when successful