New study shows G-rated films produce more profits than films rated R
The Presbyterian Layman, February 3, 1999
True or False?
1. The average G-rated film produces a 78 percent greater return on investment than the average R-rated film.
2. The average G-rated film produces eight times more gross profit than its R-rated counterpart.
3. Hollywood produced 17 times more R-rated than G-rated films between 1988 and 1997.
All of the above are true. But wouldn’t it make more sense for Hollywood studios if number three was false?
The Dove Foundation, a non-profit corporation whose mission is to encourage and promote the creation, production and distribution of wholesome family entertainment, thinks so.
And its comprehensive ten-year study focusing on the profitability of films based on their MPAA (Motion Picture Association of America) ratings – which analyzed 2,380 widely-released films rated by the MPAA between Jan. 1, 1988 and Dec. 31, 1997 – confirms it.
The reports bottom line: Movies that appeal to the broadest market segment are an important part of any studio’s profit equation, so Hollywood should wise up and – if for nothing more than a purely profit motive – make more G- or PG-rated films.
Review an executive summary of the report