The entertainment industry is primarily controlled by six large distributors: Warner Bros. Pictures, Walt Disney Pictures, Columbia Pictures (Sony), Paramount Pictures, 20th Century Fox, and Universal Pictures. Together they account for 74.47% market share (“The Numbers,” 2013). While these companies pursue a few critically acclaimed, award-worthy films, they must pursue films with a potentially large return on investment to stay in business. It is imperative, then, for a distributor to understand what causes a film to do well at the box office. The performance, or profitability, of a film is contingent upon many variables. These variables fall into three different categories: creative aspects of the film, scheduling of the film, and the marketing of the film.
Creative Decisions
In order to make money on a film, it is helpful if the film is good. What causes a film to be “good” is different for every consumer with different tastes and preferences.
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MPAA (Motion Picture Association of America) rating can also have an impact on the performance of a film because it can restrict who is permitted into the theater (MPAA.org). Initially established to prevent government regulation and censorship, MPAA ratings also help protect children from seeing inappropriate content, (MPAA.org). The rating system includes G (general audiences), PG (parental guidance suggested), PG-13 (parents strongly cautioned), and R (restricted), (MPAA.org). Many animated films are rated G since these films are generally meant for families and children (cinemablend.com). If a film is rated PG-13, it benefits from both ends of the spectrum: it can include more inappropriate content (action or sexually implicit scenes) while still appealing to a large crowd 13 and older, (cinemablend.com). This watered-down product is not inappropriate enough to be R-rated and can still appeal to a large crowd