Feb 27th 2016
Crunching information from The Numbers, a website that collects data on
film releases, and Rotten Tomatoes, an aggregator of critics’ and
punters’ reviews, we found that the strongest predictor of absolute
box-office receipts is a film’s budget
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The more a studio commits to producing a film, the more it is likely to
spend on advertising it. The budget also helps determine how widely a
film is shown. Films with a budget of $10m-40m open, on average, in
1,600 of the 6,000-odd cinemas in America and Canada; those with budgets
of over $100m open in 3,500.
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Sequels and franchise films are another way for studios to limit their
risks. Nearly one in five of the films Hollywood pumps out nowadays is a
sequel, up from one in 12 a couple of decades ago. All other things
being equal, sequels earn $35m more than non-sequels at the box office.
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