With Great Power Comes Great Responsibility: @RISK plays a part in finance analysis for SpiderMan 2 and other movie favorites

With Great Power Comes Great Responsibility: @RISK plays a part in finance analysis for SpiderMan 2 and other movie favoritesThe next time you settle in at the Cineplex to watch the latest Hollywood blockbuster, you may have @RISK to thank in part for its production.

Movies such as SpiderMan 2, The Interview, and 22 Jump Street have all benefited from @RISK’s quantitative risk analysis—thanks to Benjamin Waisbren. Waisbren, a partner at the law firm Winston & Strawn, is also the President and a shareholder of LSC Film Corporation, which funds major film productions–such as V for Vendetta, Blood Diamond, and 300. In his role as a film financier, Waisbren uses @RISK in all his negotiations.

Last year, Waisbren relied on @RISK to navigate a $200 million co-financing deal with Sony. The deal gave Waisbren’s team, LStar Capital, a stake in nearly all of Sony’s movies. Waisbren says the success was in part thanks to Palisade’s risk analysis software: “I am happy to say that @RISK played a very significant part in my work on that deal,” he says. “I did the modeling behind it, and because of @RISK, we did not hire any outside advisor or consultant.” Additionally, because of the risk modeling tool, “our closing costs were about 20 million dollars lower than other deals.” After closing the agreement, Waisbren was then asked to be manager of the new film fund for LStar Capital.

Since then, Waisbren has continued to use @RISK to do statistical analysis on risk quantification volatility of motion picture businesses. For example, the software has helped him to make uncannily accurate predictions around how much a film will make on its opening day or weekend—or, it can help him predict how much money a film production will burn through in a certain number of months. In short, it’s proven itself invaluable: “I’m really grateful for this product—it has provided a substantial competitive advantage in this business,” he says. “I’m a huge believer in this tool.”

Read the full case study here.

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