Hollywood's Bad Math

Everyone knows that Hollywood makes a big push in the summer since this is when they make most of their money. Or do they?

The Wall Street Journal tried to slip through the following nugget, hoping that reader-innumeracy would cover up their own innumeracy. In a June 25 article entitled "Summer of 44" they pointed out that the summer season is so important to Hollywood because:

"...the 18-week summer season ... accounts for 40% of all ticket sales..."

Do the math: 18 weeks is 35% of the year. That's right, they are worried to distraction about making 40% of their revenue in 35% of th year, while giving (obviously) short shrift to the 60% of their money that they take in during the other 65% of the year.

This is not a serious seasonal fluctuation. Jewelers (for example), make 23% of their revenue in just over 8% of the year (December).

It's probably a good thing the Hollywood types went into entertainment, instead of somewhere where their math skills might be needed.

Comments

[J-Deal]

I think Hollywood is going to have to have a nice little paradign shift soon...

It would probably be better stated that 50% of a movie's gross is made in about 10% of a movies run. The opening weekend... This has worked nice for the past two years, you have movies being created just because it could have a good trailer...

But I wonder how much longer this can go on, it's almost like a mini dot com boom, you have companies making millions putting out horrible product, just because they know they can open big. (And on another note, a studio gets about 93% of the first week gross from the theater)

Seems to me the people will tire of this soon, and just start looking for good movies again. Though I could be wrong. Many just go to the movies for the sake of going to the moive, and they can put almost anything up on the screen.

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