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Film Star Distribution Essay

1432 words - 6 pages

1)IntroductionThis paper will also analyse the nature of risk environment facing the producer and distributor and the actions taken to reduce such risk. What will follow is an analysis of the US film industry and the film released during 1992. I will look at star and genre distribution and also market share of the major US distributors.Annual Distribution of revenuesThe annual distribution of revenues seems to be declining gradually from the top ten films to the films in the lower ranks. During 1992 Aladdin was the biggest box office smash generating $214.4 million. The lowest ranking film was High Strung, which made $904 (see appendix 1 for full top 50 and bottom 50 films).There are three main assumptions, which seem to support this appearance of the industry. Vogel (1994) has that the top twenty grossing films of any year account for 40% of that years box office total, with a giant hit every so often temporarily boosting the percentage. An example of such a giant hit will be Aladdin, which grossed $214.4 million on its own. The second assumption is from the Media Business School (1995) who have said that most cinemas are relying on blockbusters, as a small number of titles are responsible for growing proportion of the box office. The cinemas are therefore trying to secure high visitor numbers to retain particular level of revenues and to lower the risks of being driven out of business. The third main reason for the box office appearance is; generally the big box office films tend to lure filmgoers with intensive advertising, the media and word of mouth. A clearer way to look at the inequality in revenues is to analyse the top twenty movies and bottom twenty movies (see fig 1).Figure 1 Top 1 - 20 Bottom 20Total Revenue $2,234,436,432 $121,101% Of difference 17% 29%Mean $111,721,821.6 $6,055Median $104,345,686 $5,476Range $154,801,272 $11,259Standard Deviation 41,556,346 3,368Variance 1,726,846,799,935,050 11,345,506From figure 1 we can see that the distribution of revenues are not equal, the difference between the top 20 and bottom 20 movies is about 99.5%. The figures clearly underline the above assumptions. As we can see the standard deviation for the top twenty films are a lot higher than the bottom twenty films.In the above analysis I have only looked at differences between top and bottom twenty films. However there are major differences in revenue between films in the top ten; an example would be the near $100 million difference between Aladdin (no1) and Basic Instinct (no9) (see appendix 2 for earning profiles of top 50 films). This difference also underlines the prior assumption, which implies that the top five films possess higher dispersion due to the fact that sometimes a single number one blockbuster is bringing in the biggest part of the total box office revenue.2) Market share of distributorsThe movie...

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