Ryan Kavanaugh is a prominent American businessman who is also a film producer. He is best known for his films Zombieland in 2009, The Fighter in 2010, and Limitless in 2011. He won several awards including the Hollywood Film Award. He is famous for being the founder and CEO of the global media company, Relativity Media.a

He is also known for his Moneyball tactics. Ron Burkle armed Ryan Kavanaugh with $350 million. Ron Burkle is an American billionaire businessman who is also an investor. Ryan Kavanaugh needed to show that his tactics work. And not on midlevel Hollywood movies only. His studio then recruited twenty-five young producers. These producers made market-proven reality ideas for TV networks. Next was the creation of a sports management division. The division ties athletes like Amar’e Stoudemire and Mariano Rivera into their shows. And into Relativity’s movies, too. They also had a music division in-charge of releasing soundtracks for Relativity movies. And even films from other studios such as DreamWorks Animation’s The Croods.

Ryan Kavanaugh also tried to replicate his formulas in China. He hoped for success on a larger scale. The goal was a fully-integrated entertainment giant. Each division will increase the probability of success of another.

RYAN KAVANAUGH: THE MONEYBALL TACTICS

He brought science and math to a world dominated by art and gut. His office in Beverly Hills is not full of movie posters and other Hollywood materials. Unlike most studio heads, he surrounded himself with quotes from Albert Einstein. Such as, “Great spirits have always encountered violent opposition from mediocre minds.” The scientist is the inspiration of Relativity Media’s name.

The core of Kavanaugh’s business is numbers. His movie model means he keeps budgets tight. Every million counts. He rejected films with a budget exceeding what he was willing to spend. Most foreign pre-sales cover almost the entire production budget on a low-cost movie. The film does not have to debut at number one at the box office to be profitable.

He adapted the Monte Carlo method from Wall Street risk management strategies. He applied the budget philosophy to Relativity projects. He used data from thousands of films and predicted the outcome of any given movie. He takes into consideration a lot of factors. These include budget, stars, release date, and genre. Kavanaugh introduced it in 2006, and it became phenomenal.

Ron Burkle thought that it is an exciting opportunity. Get Ryan Kavanaugh to keep his young enthusiastic ways and have a grown-up in the room when he needs it. Ryan Kavanaugh takes that kind of favourable math. He then applies it across different areas of entertainment. Ron Burkle’s investment helped Kavanaugh expand to TV networks, the most significant frontier.

Relativity did not gauge box office appeal. It listens to what cable executives needed. He plugs data into his computers and then offers up solutions in the form of specific show ideas. The same production model holds. Retaining an ownership stake and producing it with a low budget. Making even mediocre ratings translate into a profit.