Futures Market for Movies Coming Soon
You'll be able to bet, and trade, on the domestic box office of upcoming movies from next month, when a subsidiary of financial firm Cantor Fitzgerald will open an online futures site.
...contracts on the Cantor exchange will trade at $1 for every $1 million a movie is expected to bring in - a figure determined by traders - at the domestic box office during its first few weeks in theaters. So if "Robin Hood" is expected to bring in $100 million in its opening weeks, a single contract could be bought for $100 by a trader who thinks Russell Crowe's role in the movie will drive sales far above expectations. If that trader guesses right, and the movie sells $150 million in tickets, the trader makes $50.
The market will also be open to Hollywood insiders and studios, leaving the potential for mathematical proof that they don't know how to guarantee box office success beyond sequels and adaptations.