A trend that comes and goes with the theatrical release of hit films (and sometimes not so “hit” films) and “hot” films (i.e. a small but enthused following) is that of “Hype Premium”. This trend manifests itself in conjunction with the theatrical release of films that include complimentary promotion in the form of prop offerings by the studio or studio affiliate. Well, I just now made up the terminology – “Hype Premium” – but it’s descriptive enough…
This is an oft discussed trend – even in the midst of it actually occurring – but it rarely fails to deliver.
Companies like Hollywood Vault and Premiere Props often schedule auctions by 1) offering props from films at the time of the theatrical release and then, 2) offering additional props later, at the time of the DVD release.
This is done to maximize promotion of the film (in theaters and for home video release) via the sale of props and wardrobe pieces.
So what does this have to do with the “Hype Premium”?
The “Hype Premium” is the difference in price realized for the same or similar items offered at the theatrical release compared with the home video release.
Because more hype surrounds a film at the time of initial release in theaters, the excitement around the film and availability of studio-endorsed props lead to higher prices realized at auction. By the time the film is released on DVD, the excitement fades, the props are more available (and often some are already recycled back into the marketplace via resale), and there are new films – and new hype – to divert and divide interest.
Here is a perfect case study…
Spider-Man 3 was the latest in a popular and financially successful franchise. Hollywood Vault handled the auctions for the studio (see “Notable Studio Auctions: Spider-Man 3“) back in May. Regrettably, Hollywood Vault took the “Prop Butchers” approach to the actual Spider-Man costumes (see article Business Practice: The Prop Butchers). However, one compelling example of this practice was the offering of one of the (nearly full) masks from the film. This was the top piece from the auction, realizing $17,000 at auction on eBay:
Of course, given the topic of the article, it begs the question – what is the “Hype Premium” for Spider-Man 3?
Well, though there are a variety of “like” comparisons to be made, I thought it would be most interesting to compare top piece to top piece (mask to mask) if such an offering were made again.
Yesterday, a second such eBay listing ended, for a similar mask, offered by Hollywood Vault in conjunction with the DVD release tomorrow.
While the first specimen is admittedly superior (with one full eye not present on the more recent auction), they are nearly identical.
The auction ended today for $5,3659:
So, the difference between $17,100 (Theatrical Release) and $5,369 (Home Video Release) is a “Hype Premium” of $11,631 – over 300%.
Another factor, and another phenomenon (for a future article), is that of “Hype Deflation”, which is the private resale of such a piece, and the difference between the cost of acquisition and the price realized at resale. The norm is that prices realized for props from hit or “hot” films, sanctioned by the studios, at the time at theatrical release, are the highest price realized for such props. Typically, though not always, the price realized the second time, by private collectors, is substantially less.
Jason De Bord