Case Study FIlm Industry

Film is a large multi-billion dollar industry in the USA and worldwide overall. Compared to other industries it has a very unique characteristic. For example when it comes to the real estate, fashion, cars consumer cost will always reflect the cost of manufacturing. If Nissan spends less on manufacturing a car, it will charge less than what Rolls Royce would. This rule doesn’t hold in the movie industry. When a person goes to a movie theater they have a wide variety of choices and the price for all the movies is mostly equal or has a very small range. So if its not the price, question stands what drives consumers to chose film A over the film B? With the sample data obtained from 100 motion pictures produced in 2005 it is possible to investigate which factors affect movie attendance. Analysis of variables such as Opening Gross Sales, Number of Theaters, Weeks in Top 60 and Total Gross shows the overall shape and tendencies of this business, while the correlation between them helps to determine which factors contribute to success of a movie and bring in the highest income.

Descriptive Statistics show that the Film Industry is highly variable and influenced by a few highly successful blockbusters.

Measure of Location Measure of Variance
Variable Mean First Quartile Q1 Median Q2 Third Quartile Q3 Range Standart Deviation
Opening Gross Sales 9.37 0.06375 0.39 12.43025 108.43 18.87470211
Total Gross Sales 33.04 0.40275 5.85 47.43475 380.15 63.16469269
Number of Theaters 1,277.94 45.75 410 2626.5 3905 1378.689444
Weeks in Top 60 8.68 3 7 13 26 6.389511608

Opening Gross Sales represent how anticipated and well received the movie is. Of the 100 movies the mean opening sale is $9.38 million. However the median is only $ 390,000. This means that 50% of the movies received $390,000 or less. The mean was affected by the top selling movies. Top 25% that have received $12.43 million or more in the opening week. The