FOR IMMEDIATE RELEASE
Contact: Tara Powers
Lambert, Edwards & Associates
Dove Foundation Study Shows G-Rated Films Still Get Greatest Profits
Grand Rapids, Mich., June 07, 2005 – A new, 15-year study released
today examining the profitability of films based on their Motion Picture
Association of America (MPAA) ratings reveals G-rated films continue to profit
significantly more than their R-rated counterparts.
The Dove Foundation commissioned a study that examines the revenues and
negative costs for the 3,000 most widely released movies from January 1, 1989
through December 31, 2003, updating its landmark 1999 study that looked at films
released between 1988 and 1997.
The updated, 15-year study tracks the latest films relative to profitability,
and evaluates the changes and lasting impressions on film studios as a result of
the first study. The data was assembled by Kagan Media Appraisals and analyzed
by the Finance department of Seidman College of Business, Grand Valley State
Notably, the study found that:
While the movie industry produced nearly 12 times more R-rated films than
G-rated films from 1989 – 2003, the average G-rated film produced 11
times greater profit than its R-rated counterpart.
G-rated films released between 2000 and 2003 produced an average return on
investment three times greater than R-rated films.
Between 2000 and 2003, Hollywood produced nearly four times as many PG-13
films as PG. During that same time, the average PG film produced $33
million or 43% greater profit than a PG-13 film.
“Movies such as Shrek II, Finding
Neverland, National Treasure, The Incredibles and Miracle
– all rated PG – are action and adventure films, comedies, dramas and mysteries
– but without the explicit language and gory special effects that are rampant in
R-rated movies,” said Dick Rolfe, Founder and Chairman of The Dove Foundation.
“This study clearly demonstrates that families around the country have favored,
and continue to favor, wholesome, family-friendly movies – not movies filled
with gratuitous sex, violence and obscene language that studios have long
claimed make the most money.”
Previously, the 1999 study found the average
G-rated movie made eight times the profit of its R-rated counterpart. This 2005
study documents that the per-film profit ratio between G and R has jumped to
The updated study found significant differences in
the number of G and R-rated films released before and after the 1999 indicating
the findings may have resonated with Hollywood studio executives.
Specifically, since 1999, the production of:
R-rated films decreased 12%.
G-rated movies increased by 38%.
The study further reports that over the15 year
period, the major Hollywood film studios produced 123 G-rated films, accounting
for approximately four percent of the 3,000 most widely released films with an
average profit of $79 million each. During the same period, the major
studios produced 1,533 R-rated films, accounting for approximately 51% of the
same 3,000 films with an average profit of only $7 million each.
Miramax/Dimension, a subsidiary of Walt Disney
Studio Entertainment, released the most R-rated movies during the study.
“Clearly, if Hollywood is worried about a recent
decline in attendance and the resulting loss of profits, they should be
producing more G- and PG-rated films,” said Rolfe. “The general public is
voting with their feet, heading to movies that the whole family can enjoy
without having to worry about exposing themselves or their youngsters to
inappropriate language or behavior.”
Since the Motion Picture Association of American
introduced the movie ratings system in 1968, nearly 60% of all films released by
Hollywood have been rated R. The results of The Dove Foundation’s
comprehensive, 15-year study on film profitability debunk the myth that R-rated
movies drive profit with hard numbers that impact Hollywood’s bottom line.
“Change in American cinema is imminent,” Rolfe
said. “With the exception of ‘The Passion of the Christ,’ the top 20 domestic
box office films of all time are rated G, PG or PG-13. Wholesome,
family-friendly movies are truly the way of the future for the entertainment
About The Dove Foundation
The Dove Foundation is a nonprofit corporation
whose mission is to encourage and promote the creation, production, distribution
and consumption of wholesome family entertainment. The Dove Foundation
commissioned these studies due to the lack of family oriented films produced in
relation to an increasing number of films containing gratuitous sex, violence
and profanity. Believing that movies that appeal to the broadest segment of the
population are an important part of any studio’s profit equation, The Dove
Foundation sought to determine which films by MPAA rating produce the greatest
profits and highest rates of return on investment (ROI).
Dick Rolfe, Dove Foundation Co-founder is
available for interviews upon request. For more information, please contact
Tara Powers at 616.233.0500.
Download the 2005 ROI Study