A Study of the Determinants of Film Revenue

A Study of the Determinants of Film Revenue

Sean Thornberry

&

Dakota Isbell

Econ 261-1

Spring 2013

The purpose of this study is to determine what variables affect a films generated revenue and in what ways. Our findings showed us that film revenue is greatly affected by the films budget as well as the season of the year that it is released. Other variables that influenced revenue were opening weekend revenue, amount of theatres used & the amount of days the film was screened.

We’d like to thank our families as well as the brothers of Zeta Beta Tau fraternity for their guidance and help throughout our educational lives. We couldn’t do it without them!

Part I: Characteristics of Film Revenue

1.

| Revenue | Budget | Theatre | Opening | Days |

Mean | 66144304.57 | 53133761.79 | 2512.146226 | 19691738.91 | 100.1179245 |

Standard Deviation | 72470208.51 | 52003154.73 | 1159.829741 | 23709540.32 | 48.33536566 |

Minimum | 1008098 | 15000 | 51 | 24587 | 13 |

Maximum | 415004880 | 260000000 | 4468 | 169189427 | 585 |

The average film revenue was $66,144,304.57 with a standard deviation of $72,470,208.51. The minimum revenue for a film’s revenue during that period was $1,008,098 whereas the maximum revenue from a film was $415,004,880. The average budget for a film’s production was $53,133,761.79 with a standard deviation of $52,003,154.73. The minimum budget used for a film was $15,000 with the largest budget being $260,000,000. The average number of theatres used to show a film was 2512.146226 with a standard variation of 1159.829741. The minimum amount of theatres used to show a film was just 51 whereas 4468 theatres was the maximum amount used for a screening of a film. The average revenue received from opening weekend was $19,691,738.91 with a standard deviation of $23,709,540.32. The minimum amount of revenue received from an opening weekend was $24,587 whereas the biggest opening weekend came in at $169,189,427. The average amount...