Movie Sequels and their Financial Benefits
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 20thcentury, 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/
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