The Oscars!
The Oscars
By: Abbey Toureene
There is one night a year where millions of Americans gather around their televisions to stare in awe at the gowns, shoes, jewelry, and accessories worth more than the average car, wait in agony with their fingers crossed in hope that their favorite film wins Best Picture, and laugh hysterically at the strategically chosen host to guide every viewer through this marvelous night. This grand event could be none other than the Oscar’s. The first Oscar’s was held in 1929 on May 16th at the Hollywood Roosevelt Hotel. There were 270 people at this premiering event at guest tickets costing only $5. Today, the cost to simply put on the production comes to an average of over $30 million, with each actual oscar figurine costing $900 to manufacture. Considering the 50 plus winners each year, the statuettes cost alone comes out to be around
$45,000. As the cost to put on the Oscar’s increases every year, the Academy Awards transforms into an even greater extravaganza. While the shimmering dresses and grand entrances are what catch millions of Americans’ eyes , the economic contribution of this event are all the more astonishing.
The Oscar’s holds more power in the economic world than one would expect. Natalie Butz, an economist said in her blog that “it completely changes which movies the American public sees, whether or not a studio stays in business, and which films will be remembered. It's called the ‘Oscar Bump’ and it's a force to be reckoned with.” The Oscar Bump is the influence the Oscar nominations and awards have on ticket sales for movies shown in theatres. The amount of increase on ticket sales and DVD purchases prior to only receiving a nomination is already impressive but then after winning the award, the numbers are incredible. The movie
industry brings 30 to 35 billion dollars per year into the American economy. With this significantly
high amount of money, this economic effect proves to be very effective in America’s economy
today.
The chart above shows the impact of receiving a nomination or award on ticket sales for the most prominent movies of 6 different time periods. The popularity and significance of these movies that still exist today can be directly correlated with their promotion through the Oscar’s. As seen in the chart, in 1998 the film Shakespeare in Love doubled in revenue just after its nomination and then continued to increase by a significant amount after winning an Academy Award. The King’s Speech also doubled in ticket sales from the time it was awarded an Oscar and left the theatres while the largest increase in revenue was by the film Slumdog Millionaire which received nearly a $100 million increase in revenue after its nomination and Oscar award. No matter the popularity of the movie prior to the Oscar’s promotional effects, there is nothing
but beneficial outcomes for these films after being recognized by the Oscar’s. An already thriving film will do nothing but increase in revenue and extend its showing time and theatres while a lesser known film will quickly spread across the nation in popularity.
The chart above illustrates the new predicted information economists can predict after years of studying the aftermath of the Oscar’s. Economists can now predict the increase in revenue a movie will receive depending on which award they are nominated for or are granted. Although the Oscar’s may sometimes only seem valuable for a night of entertainment, an escape from reality, or an excuse for hundreds of talk shows to discuss ridiculously expensive dresses for weeks after the event, its effect on the American economy is astounding especially when considering the movie industry. So next time you watch the Oscar’s, instead of thinking like any American would and allowing yourself to be hypnotized by the newest bizarre fashion or
trends, think like an economist and predict what outcomes the nominations and awards may
bring!
Works Cited
"Economists Do It With Models."Economists Do It With Models RSS. N.p., n.d. Web. 3 Mar. 2014.
<http://www.economistsdoitwithmodels.com/2012/02/27/when-economists-watch-the-oscars/>.
"History of the Academy Awards | Academy of Motion Picture Arts & Sciences." History of the Academy
Awards | Academy of Motion Picture Arts & Sciences. N.p., n.d. Web. 3 Mar. 2014.
<https://www.oscars.org/awards/academyawards/about/history.html>.
"The Economics Of the Oscars, In Two Quick and Easy Charts." PolicyMic. N.p., n.d. Web. 3 Mar. 2014.
<http://www.policymic.com/articles/79143/the-economics-of-the-oscars-in-two-quick-and-easy-chart
By: Abbey Toureene
There is one night a year where millions of Americans gather around their televisions to stare in awe at the gowns, shoes, jewelry, and accessories worth more than the average car, wait in agony with their fingers crossed in hope that their favorite film wins Best Picture, and laugh hysterically at the strategically chosen host to guide every viewer through this marvelous night. This grand event could be none other than the Oscar’s. The first Oscar’s was held in 1929 on May 16th at the Hollywood Roosevelt Hotel. There were 270 people at this premiering event at guest tickets costing only $5. Today, the cost to simply put on the production comes to an average of over $30 million, with each actual oscar figurine costing $900 to manufacture. Considering the 50 plus winners each year, the statuettes cost alone comes out to be around
$45,000. As the cost to put on the Oscar’s increases every year, the Academy Awards transforms into an even greater extravaganza. While the shimmering dresses and grand entrances are what catch millions of Americans’ eyes , the economic contribution of this event are all the more astonishing.
The Oscar’s holds more power in the economic world than one would expect. Natalie Butz, an economist said in her blog that “it completely changes which movies the American public sees, whether or not a studio stays in business, and which films will be remembered. It's called the ‘Oscar Bump’ and it's a force to be reckoned with.” The Oscar Bump is the influence the Oscar nominations and awards have on ticket sales for movies shown in theatres. The amount of increase on ticket sales and DVD purchases prior to only receiving a nomination is already impressive but then after winning the award, the numbers are incredible. The movie
industry brings 30 to 35 billion dollars per year into the American economy. With this significantly
high amount of money, this economic effect proves to be very effective in America’s economy
today.
The chart above shows the impact of receiving a nomination or award on ticket sales for the most prominent movies of 6 different time periods. The popularity and significance of these movies that still exist today can be directly correlated with their promotion through the Oscar’s. As seen in the chart, in 1998 the film Shakespeare in Love doubled in revenue just after its nomination and then continued to increase by a significant amount after winning an Academy Award. The King’s Speech also doubled in ticket sales from the time it was awarded an Oscar and left the theatres while the largest increase in revenue was by the film Slumdog Millionaire which received nearly a $100 million increase in revenue after its nomination and Oscar award. No matter the popularity of the movie prior to the Oscar’s promotional effects, there is nothing
but beneficial outcomes for these films after being recognized by the Oscar’s. An already thriving film will do nothing but increase in revenue and extend its showing time and theatres while a lesser known film will quickly spread across the nation in popularity.
The chart above illustrates the new predicted information economists can predict after years of studying the aftermath of the Oscar’s. Economists can now predict the increase in revenue a movie will receive depending on which award they are nominated for or are granted. Although the Oscar’s may sometimes only seem valuable for a night of entertainment, an escape from reality, or an excuse for hundreds of talk shows to discuss ridiculously expensive dresses for weeks after the event, its effect on the American economy is astounding especially when considering the movie industry. So next time you watch the Oscar’s, instead of thinking like any American would and allowing yourself to be hypnotized by the newest bizarre fashion or
trends, think like an economist and predict what outcomes the nominations and awards may
bring!
Works Cited
"Economists Do It With Models."Economists Do It With Models RSS. N.p., n.d. Web. 3 Mar. 2014.
<http://www.economistsdoitwithmodels.com/2012/02/27/when-economists-watch-the-oscars/>.
"History of the Academy Awards | Academy of Motion Picture Arts & Sciences." History of the Academy
Awards | Academy of Motion Picture Arts & Sciences. N.p., n.d. Web. 3 Mar. 2014.
<https://www.oscars.org/awards/academyawards/about/history.html>.
"The Economics Of the Oscars, In Two Quick and Easy Charts." PolicyMic. N.p., n.d. Web. 3 Mar. 2014.
<http://www.policymic.com/articles/79143/the-economics-of-the-oscars-in-two-quick-and-easy-chart
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