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Study: Pricey Movies and Franchises Make Biggest Bucks

13 Sep, 2007 By: Chris Tribbey

When it comes to movies, you've got to spend money to make money, and your best bet is to invest in properties with franchise potential. That's according to the study “Economics of Motion Pictures,” released Sept. 13 from research firm SNL Kagan, which found that the movies that cost the most make the most and that franchise avenues are more important now than ever before.

“No matter how skilled an individual is at finding the right film, there is still risk involved in making it,” said SNL Kagan analyst Wade Holden, in a press release. “Public tastes can shift quickly and a type of film that may have been popular three years ago may have fallen from favor with audiences.

“U.S. box office admissions have been on the decline since their peak in 2002. Exhibitors have managed to offset lower admissions with higher ticket prices, keeping the domestic box above the $9 billion mark.”

He was not available by press time for further comment.

A summary of findings from the study shows movies with budgets of more than $90 million pulled in the most revenue, and the average cost to make and market a film grew to more than $100 million in 2006. The report looked at all films that screened on 1,000 or more screens from 2002-2006, and breaks out titles by genre.

For more information about the report, contact SNL Kagan at SNLKaganSales@snl.com or 1-866-296-3743.

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