Film Economics

Paper Summary:

This paper considers aspects of film business economics. The writer notes differences between studio films and independent films in terms of grosses and the relationship between opening weekend grosses and total grosses for a number of films. In this article, the writer uses Miramax as an example of an independent company showing a different pattern, as it opens films more slowly and makes money more slowly as well.

From the Paper:

"The economics of the film business change over time, and much of what applied in the studio era is no longer applicable, and even what worked for the major companies in the 1970s is not applicable today. The business has become consolidated at the top, with the major studios dominating, while also opening the way for smaller companies at various times. The fact that film exhibition is now targeted more at multiplexes than at large stand-alone theaters has contributed to this change, given that exhibitors have more screens to fill. While they often do this by putting the same film on two or three screens at a time, they also rely on a larger number of films to keep patrons coming back week after week if not more often."

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