The author examines the strategy of producing blockbusters in all aspects of the entertainment industries. The rapid rise of this strategy can be traced to a number of common changes in the conditions of supply and demand facing firms in these industries, including increased intermedia competition, rising fixed costs, and the growth of mass market. These changes, coupled with the uncertain demand that characterizes the entertainment industries, have led many firms to opt for expensive, heavily promoted projects as a from of self-insurance.

The author examines the strategy of producing blockbusters in all aspects of the entertainment industries. The rapid rise of this strategy can be traced to a number of common changes in the conditions of supply and demand facing firms in these industries, including increased intermedia competition, rising fixed costs, and the growth of mass market. These changes, coupled with the uncertain demand that characterizes the entertainment industries, have led many firms to opt for expensive, heavily promoted projects as a from of self-insurance.