Movie Sequels and their Financial Benefits
Miranda Kozlik
It seems like all successful movies follow up with a sequel or
maybe multiple sequels. Of course the directors of these movies want to keep
their production alive, fans yearn for more of the movie, and the actors are
usually willing to follow up the first production yet that isn’t the reason why
they make another movie. If there is a spike in interest solely off of one
movie, producers jump on that opportunity because of the money. Since the 20th
century, the cinema of the United States—generally referred to as Hollywood—is
known throughout the world. The American film industry has grossed more money every year than that of any other country and
their good at it. Because of this
success, if one movie gets a rise out of the audience, the demand for a second, third, fourth, one is high and the profit is
rewarding.
Everyone can relate to the hype of Harry Potter’s movies. Because
of the book and the first movie, the producers were not hesitant on
transferring the sequels of the books onto the big screen. The first movie,
according to “The Numbers: Harry Potter Movies”, made a worldwide profit of
almost one billion dollars when in theaters. Because of this hype and revenue in November 16, 2001, a year
later the second installment was created. America’s profit skyrocketed exporting these productions that
included 8 total. “Harry Potter and the Deathly Hallows: Part II” had the
highest profit almost producing 1.5 billion, once again only in theaters.
Altogether the installment of the whole Harry Potter movie series created a profit of $7 billion knocking down many
old record holdings for the Box Office history.
ox Office History for Harry Potter Movies
| Release Date | Movie | Production Budget | Domestic Opening Weekend | Domestic Box Office | Worldwide Box Office | Trailer |
|---|---|---|---|---|---|---|
| Nov 16, 2001 | Harry Potter and the Sorcerer's Stone | $125,000,000 | $90,294,621 | $317,575,550 | $974,755,371 | |
| Nov 15, 2002 | Harry Potter and the Chamber of Secrets | $100,000,000 | $88,357,488 | $261,987,880 | $878,979,634 | |
| Jun 4, 2004 | Harry Potter and the Prisoner of Azkaban | $130,000,000 | $93,687,367 | $249,538,952 | $796,688,549 | |
| Nov 18, 2005 | Harry Potter and the Goblet of Fire | $150,000,000 | $102,685,961 | $290,013,036 | $896,911,078 | |
| Jul 11, 2007 | Harry Potter and the Order of the Phoenix | $150,000,000 | $77,108,414 | $292,004,738 | $942,943,935 | |
| Jul 15, 2009 | Harry Potter and the Half-Blood Prince | $250,000,000 | $77,835,727 | $301,959,197 | $934,416,487 | Play |
| Nov 19, 2010 | Harry Potter and the Deathly Hallows: Part I | $125,000,000 | $125,017,372 | $295,983,305 | $956,399,711 | Play |
| Jul 15, 2011 | Harry Potter and the Deathly Hallows: Part II | $125,000,000 | $169,189,427 | $381,011,219 | $1,328,111,219 | Play |
| Totals | $1,155,000,000 | $2,390,073,877 | $7,709,205,984 | |||
| Averages | $144,375,000 | $103,022,047 | $298,759,235 | $963,650,748 | ||
Because the books ended, the last Harry Potter movie in 2011 was
the last big revenue to gain from the series. Now producers and writers are
trying to find the next big thing. Some say that Marvel’s superhero series is
going to be it. Already, according to
“Marvel Comics”, because of the success
of “Iron Man” in 2002, the idea of created a series of superhero movies was a
go. Creating about 30 movies already, Marvel has gained around $5.8 billion and
it’s only the beginning. Because of the response towards Iron Man, sequels (now
2) and ideas branching off of this movie have skyrocketed. In the past year
(2013), five Marvel movies erupted the big screen and the demand for more because of the response is creating hype for the
production of movies coming out up until 2015. Some of these movies include
“Robocop”, “Captain America: The Winter Soldier”, “The Amazing Spider-Man 2”,
“Avengers: Ager of Ultron”, and “Superman vs. Batman”. Estimating the profit of around $200 billion per
movie, Marvel has a lot coming their way.
Why does this relate to economics some may ask? The CEO of Time
Warner, Jeff Bewkes says sequels for movies make sense financially. Even though it takes a lot to produce these movies
including money, sequels to movies are “more predictable” and “are more
profitable and less risky than medium or small” budget films. The idea of sequels weren’t always big though but
now, all studios are becoming skillful at creating these types of films. He
explains how movies are franchises; businesses that need to keep growing
because competition is growing in
our capitalistic country. Bewkes
also touches on that “even the grow overseas and via online distribution” is a
big factor when it comes to the amount of profit made on the sequels of movies.
Movie production has only just begun to be big. New ideas and new storylines
are constantly going to be made based off the consumers trends and lucky for us,
all we have to do is enjoy them.
Citations
http://www.deadline.com/2013/05/jeff-bewkes-says-tentpole-movies-and-sequels-make-sense-financially/
This was very interesting Miranda! I loved that you incorporated Harry Potter, always a crowd favorite, and that data definitely proves that! I am shocked that sequels are mainly due to revenue. It makes sense though, I hear more and more fans of Hunger Games now that the sequels are coming out. It also puts a lot of pressure on the directors to make it better than the first in order to please their customers.
ReplyDeleteI loved your topic Miranda, I just watched all the Harry Potter movies and I am in love. It makes complete sense that when the first movie is a success, the demand gets higher and the consumers want more. It seems common that Hollywood pays attention to the sales that different books have and if it turns out well, they turn them into movies (Harry Potter, Twilight, Hunger Games, etc). From a director's point of view it makes sense to spend more money in order to please the consumers, trying to match the movie with the book so there isn't any bad reviews and they can keep a positive reputation.
ReplyDeleteMovie sequels are such a smart way for companies to make money. As you said, once a movie becomes all of the hype, the demand for another one gets really high. When these movies become popular, consumer tastes are changing and rather than the companies getting profits from the less popular and singular movies that are out in theaters, they are raking them in from the movies that everyone is promoting and hyping up. Movies overall are a huge profit, but sequels are definitely a big benefit for the economy in the movie business.
ReplyDeleteOkay so movies are always being turned into sequels now? Like all of them right? Not everyone likes to watch the same movies over and over again. Why not just make a TV show? Would the income change from movie sequels to TV shows drastically? I do not know much about how much TV shows make but I know it's a lot. In personal reference I think that sequels are so predictable these days and there just needs to be more original movies.
ReplyDeleteGood job Miranda, but also just imagine how much more money Harry Potter made also outside of the theaters with their DVD's and other merchandise. I thought that Hunger Games was a close competitor to Harry Potter, even though there won’t be as many movies to the Hunger Games.
ReplyDeletePeople still are completely fascinated by movies like these. They get hooked and addicted to them so easily and so they want to not only go to the movies and watch them, but they’re going to go and watch them more than once which is good for the movie producers and the movie theaters. With more sequels, the movies go more in depth than others, and are able to have cliff hangers that will draw the massive crowds back in.
The effect a sequel can have on the franchise is very interesting; it can either make the series or bury it. Another huge, profitable benefit that comes with the creation of a successful movie is the potential for other consumer products such as: DVDs, games, and toys. The fact that so many people are willing to pay to see these films is incredible, and provides motivation for the movie makers to keep providing entertainment means for the economy.
ReplyDeleteI knew the harry potter movies were a big hit but had no clue on have much the producers made off of it! And I also didn't know that the marvel superheros movies were becoming big, probably because I'm not into those types but I do agree that movie makers in Hollywood are good at what they do and love to make sequels like the twilight movies for example. Great Post!
ReplyDeleteMovie sequels are great ways to get more people to be spending money on the film industry. To improve the economy, people have to spend money. With movie sequels, there is no need for a lot of advertising for publicity because people already are anticipate that the sequel will be just as good or better than the previous movie. Take for example The Hunger Games. There have been 2 movies so far and the amount of revenue brought in is unbelievable. The movies are at the top of the box office earnings because people want to see what happens next and with a third movie coming out soon, we can expect the earnings to be even higher.
ReplyDeleteIt's truly incredible how much revenue has come strictly from your example of the Harry Potter series- hundreds of millions of dollars. Considering the amount of people who follow along a particular series, sequels promise exact (plus or minus a few) same numbers with each sequel because of gaining or losing fans. To me, the effort to continue to promote a specific series is genius because if the initial film was successful, your fans will carry onto the sequel, providing profit and benefit to the producers, ultimately earning ridiculous amounts of revenue as you provided in the chart.
ReplyDeleteI love this topic. It's interesting that movies can make such an impact on our economy. The movie industry is an amazing way to improve the economy. With thousands of people visiting the theaters all the time, they are more than willing to visit the theaters at any price. Especially movies that are based off of best selling books such as the Hunger Games, Harry Potter and Twilight series. Movies such as those bring in millions of dollars into the economy. And as long as movie series are still being made people are going to be more willing to see them and probably more money than they want because they are eager to see if the movie is just as good as the book was.
ReplyDeleteThe movie industry is certainly a large contributor to the nation's GDP. It's success and high prices combine to create a very high revenue resulting in the stimulation of the economy. The idea of sequels and further succeeding movies created the largest chunk of revenue is very interesting. Logically, it makes sense; if people know they enjoy the plot of the story and the characters they invest their time and money into continuing the stories. Movies created from books also produce greater revenue as they have had far greater advertising and many previous supporters. The Harry Potter Series, as you used as an example, exemplifies both types of stimulations and depicts the economic growth that can come from such a prosperous industry. I think it is very interesting to see the difference between unique movies and those that are a further instilment of the worlds we know and love.
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ReplyDeleteThe revenue sequels of movies bring is a huge contributor to our nations economy. People are willing to do anything and pay any amount to see their favorite series sequel which impacts our nations GDP significantly. The bond fans make with their favorite series creates a situation where the people almost have to spend the money to see the next film. Harry Potter brings in hundreds of millions of dollars and is a perfect example of how movies can bring in such an incredible revenue. Personally, I believe it is genius for directors and writers to continue to create and write sequels to best selling series because it is a guarantee they will make a huge profit.
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