Oscar Noms, Wins Boost Revs And Marketing
Although entertainment options continue to expand and crowd the marketplace -- as well as the marketing associated with those products -- the marketing power when being nominated or winning an
Academy Award remains strong.
Movies nominated for Best Picture between 2007 and 2011 pulled in U.S. box office revenues that were 247% of their production budgets, according to industry researcher IBISWorld.
This calculates from an average production budget of $42 million, pulling in an average total U.S. box office revenue of $104 million. IBISWorld says just looking at Oscar-generated box office is around $28 million.
IBISWorld says: "Most of the nominees for the 2012 awards stand out significantly from typical blockbusters. Out of the nominees, winners tend to be lower-budget movies that have experienced a larger monetary boost for the Academy Award nomination.”
IBISWorld says during the past five years, the average winning movie was made on a $17 million budget and getting $82.5 million at the box-office -- a 485% gain -- with more than half of the winners’ box-office sales occurred after the Best Picture nomination.
By way of comparison, in estimating box-office results for all theatrical movies in 2013, an individual title's movie is expected to average a profit -- earnings before interest, taxes, depreciation and amortization -- of 7.4%.
Typical winners of the Best Picture award took in an average $35 million in box-office revenue before the Oscar nominees were announced; $29 million once they were nominated; and $18 million after winning the Oscar.
Typical nominees for Best Picture had $81 million in box-office revenue before the Oscar nominees were announced; $19.0 million once they were nominated; and $4.2 million after the awards show.
Some movies nominated for the 2011 Best Picture Oscar witness high box-office results to their production budgets: "The Artist" (297%); "The Help" (678%), "The Descendents" (413%) and "Midnight in Paris" (334%).