Profitability Study of MPAA-Rated Movies

Profitability Study of MPAA-Rated Movies

A updated study (12 pages, PDF) of the profitability of movies rated by the Motion Picture Association of America, commissioned by the Dove Foundation, looked at costs and revenues associated with almost three thousand films released by major Hollywood studios for the fifteen years between 1989 and 2003. During the past four years, it found, the average G-rated film was eleven times more profitable than its R-rated counterpart, although the film industry made more than twelve times as many R-rated films. G-rated films produced an average rate of 94.5 percent return on investment, compared to 28.7 percent for R-rated films. The study also revealed that PG-rated films consistently reported higher profits and rates of return than PG-13 and R-rated films.