Business & Finance

Fortune June 1, 2017

FORTUNE covers the entire field of business, including specific companies and business trends, tech innovation prominent business leaders, and new ideas shaping the global marketplace. FORTUNE is particularly well known for its exceptionally reliable annual rankings of companies. FORTUNE furthers understanding of the economy, provides implementable business strategy, and gives you the practical knowledge you need to maximize your own success. Fortune currently publishes 3 double issues. Each count as two of 12 issues in an annual subscription.

United States
Meredith Corporation
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12 Issues

in this issue

3 min.
uber’s reckless driver

“IT’S OFTEN OBSERVED WITH WONDER,”my colleague Geoff Colvin wrote in Fortune some months ago, that “Airbnb is the world’s largest provider of accommodations but owns no real estate, and that Uber is the world’s largest car service but owns no cars.” Each of these quintessentially 21st-century businesses connects buyers and sellers directly, instantly, and globally—dispensing with middlemen, bypassing entrenched corporate leaders and long-protected guilds, and harnessing the bootstrap entrepreneurialism of hundreds of thousands of independent contractors around the world. These companies have no inventories to stock, no supply chains to manage, very little overhead to maintain, few capital expenditures to invest in (beyond some core intellectual property), no unions to negotiate with, and relatively few employees to provide benefits for. Indeed, in an economic sense, it’s hard to imagine business models that…

3 min.
can china save hollywood?

ENTERTAINMENT SUMMER IS SUPPOSED to be Hollywood’s most glorious season, a time for tentpole franchises to showcase Alist actors implausibly escaping from expensively produced explosions. But this year, even the slew of superhero flicks careering toward the big screen can’t fight off Hollywood’s most fearsome foe: stagnating theater attendance. Over the past decade, the number of tickets sold annually in the U.S. and Canada has sunk by 80 million. Meanwhile, per capita attendance fell 14% since 2007, to just under four tickets per person per year. To be fair, boxoffice sales ticked up 2% in 2016, to $11.4 billion, but unless U.S. theater owners find a way to lure larger crowds (and not just sell more popcorn), they will soon face an existential crisis: Do you keep raising prices, even if it…

1 min.
what makes a blockbuster …in china?

The Fate of the Furiousbecame China’s bestselling Hollywood movie ever in April. Here, a few keys to its success in the country. Expect more where this came from. Action-packed Big stunts, simple plots, and beautiful actors helped F8 bridge the cultural divide. Not subversive China has no rating system. Instead, censors cut out sex, violence, and overly political content. Risquémovies get a parental advisory, which F8 avoided. Available in 3D In Asia, 78% of movie screens are 3D. It’s only 39% in the U.S. CHINA’S MOVIE MAGIC: BY THE NUMBERS 144% Growth in China’s box-office revenue since 2012. North American growth was just 6% in the same period. 40,917 Number of movie screens in China at the end of last year, more than double what it was in 2013, and surpassing the 40,759 in the U.S. 82% Share of…

1 min.

CRUISING AUTO TECH GETS SOME GAS CARS RIGHT NOW may not drive themselves, and they still can’t fly (at least not yet; see page 13 for more). But vehicle technology over the past five years has raced forward at impressive speeds. Features that approach autonomous driving—like collision warnings, rear cameras, and lane departure alerts—have seen a dramatic uptick in adoption, as measured in factory installations, according to automotive data service WardsAuto. The 11% of cars that now have self-heating and cooling seats is just gravy. CHEERIO! BREXIT COULD GET MESSY 46% Share of EU businesses saying they expect to scale back use of U.K. suppliers. As Brexit promises to roil trade agreements, Britain could find the worst of the economic fallout is yet to come. SOURCE: CHARTERED INSTITUTE OF PROCUREMENT & SUPPLY CAPITAL VRSTARTUPS ARE AHOT COMMODITY Virtual and augmented…

1 min.
investors go long on slime

TRENDS PITY THE toy industry. This season’s hottest plaything isn’t a pretty doll or quirky gadget with a movie tie-in—it’s slime. This year has seen more than 10 million YouTube and Instagram posts dedicated to homemade goo. And yet even Mattel, whose 1970s hit Slime (tagline: “It’s gooey, drippy, oozy, cold ’n clammy!”) is now a retro collector’s item, today sells nothing that could help it cash in. Instead, the most common ingredients for making slime are mundane household products, including old-fashioned laundry detergent booster borax and Elmer’s glue. That needn’t be a sticking point for investors, though. In May the CEO of Newell Brands (No. 434 on the Fortune 500), which makes Elmer’s, mentioned slime on an earnings call—four times. Elmer’s sales grew 25% last year, then, according to Barclays estimates,…

1 min.
the queen of heel stalks shop(s)

Oh, to walk in Tamara Mellon’s stilettos. The Jimmy Choo cofounder built a shoe empire, sold her stake, declared bankruptcy, and is back with a new company (sans physical stores). In June, Mellon will speak at Fortune’s Most Powerful Women International Summit in London. She caught up with Fortune’s Michal Lev-Ram. What’s your strategy for rebuilding your business [now called Tamara Mellon]? I relaunched last October as a direct-to-consumer brand. Now we just put new fashion pieces up every month. But we’re also trying to build a community. The way brands communicate with their customers is radically different today. Sports brands have done this incredibly well. This may sound weird, but what people got from church in the past, they now get from brands like SoulCycle. Everyone’s in there with a…