The document provides data and trends in the film industry from 1970-2011. It shows that box office revenues have greatly increased over time, with the highest growth from 1970-1980. Theater ticket prices have also risen, currently averaging over $7. The top 5 grossing distributors from 1995-2011 were Warner Bros, Disney, Sony, Paramount, and 20th Century Fox. DVD sales replaced VHS by the early 2000s and Netflix capitalized on digital distribution by offering more selection than brick-and-mortar rental stores. The top 5 all-time highest grossing films were Avatar, Titanic, The Dark Knight, Star Wars, and Shrek 2.

1. April 19, 2011

2. Film Industry Data From student data projects Elliott Gensler Lexi Lessaris Parker Mantell Raymond Raff Jake Stineker

3. Data from Gene Brown’s Movie Time

4. Box Office Revenues Clear increase in box office revenue over time In the 70’s the revenues began to rise greatly The average growth rate per year is 104% (median is the same as well, so mean was not influenced by outliers) Average growth rate per decade is 143% Highest growth rate from 1970-1980: 237%

5. Data from MPAA.com

6. Rise of Theater Ticket Prices The most recent figure indicates an average of over $7.00 2

7. Data from Gene Brown’s Movie Time and MPAA.com

8. Data from Gene Brown’s Movie Time and www.census.gov

9. Effect of TV Ownership on Movie Theatre Attendance Data from Gene Brown’s Movie Time

10. Data from www.the-numbers.com

14. Top 5 Grossing Distributors (1995-2011) An interesting aspect to note is the movie count versus to average gross count. Although Sony distributed more movies than did Warner Brothers, their average gross was significantly lower With only 77 movies distributed, Dreamworks SKG was able to edge Miramax's 377 films and MGM’s 229 4 Studio Name Movie Count Total Gross Average Gross Marker Share Warner Bros. 489 $25,862,943,704 $52,889,455 14.34% Walt Disney 432 $25,819,313,401 $59,766,929 14.32% Sony Pictures 508 $23,576,817,238 $46,411,058 13.07% Paramount 329 $21,149,601,523 $64,284,503 11.73% 20 th Century Fox 342 $20,117,861,634 $58,824,157 11.16%

15. DVD vs. VHS Sales Trends Circa 2002 percent of home videos being VHS vs. DVDs were equal DVDs now currently account for almost %100 of home video sales, (opposite in 1997) DVDs (in units sold) have begun to decrease slowly in 2006, perhaps due to other ways of watching film at home VHS Sales have fallen dramatically since 2003. In 2007 sales were at 300,000 units

16. DVD vs. VHS Sales Trends Continued

17. Movie Rental Business Trends Blockbuster went bankrupt in 2010 because of poor business decisions More consumers enjoy the convenience of Netflix and online downloads.

18. How Netflix Won the Market The Pareto rule says that 80% of your revenue will come from 20% of your products. Blockbuster would only stock the most popular 20% of movies because of limited shelf space.

19. How Netflix Won the Market Netflix did not have shelf space issues and could stock 100% of the movies capitalizing on the 20% that Blockbuster could not. Offered convenience of downloadable movies. Netflix attracted customers with their unlimited monthly rental program.

20. Home Video Market (2009) Although DVD sales have not been thriving, they still continue to dominate the home video market, as it accounts for 63% of it 11

21. Top 5 All Time Grossing Films 7 Film Total Gross (in millions) Avatar $759,563 Titanic $600,788 The Dark Knight $533,184 Star Wars $460,998 Shrek 2 $437,212

22. Hollywood’s Top Earners (2009) 9 All gained 2009 revenue as directors from feature films except Steven Spielberg Spielberg gained his tremendous 2009 income from Universal theme-park royalties and consulting For his work in Harry Potter, , Daniel Radcliffe was the top earner among actors with $41 million Name Total Earned (in millions) Michael Bay $125 Steven Spielberg $85 Roland Emmerich $70 James Cameron $50 Todd Phillips $44