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You've just described Hollywood, the music business, but even the supermarket/distribution business. The middleman tends to accumulate all the profit.


Big chain stores have their profit margins at below 5%.


But they do it by squeezing businesses upstream, who end up with even lower margins.


> But they do it by squeezing businesses upstream, who end up with even lower margins.

I've done tech projects for supermarkets and I've done tech projects for movie studios.

The thing I noticed about Disney is that they have an entire 'suite' of products. Basically, they can afford to lose money on a movie release if it drives toy sales, or drives attendance at Disneyland or Disneyworld.


This means most of the profit goes to the consumer since every part of the retail chain has such little profits. Its common for retail to be as low as 3%


Downvoted, but because there is no "profit" to the consumer. We get cheap clothes of which some stand up well over time considering the cost.




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