The reliable symbol of
family-friendly entertainment

535 E. Fulton, Suite 1A
Grand Rapids, MI 49503

Steve Allen - Composer, Author, Entertainer
Ron Anderson - Vice Chairman, Bozell Corporation
James G. Buick - former President, Zondervan Corporation
Robert J. Campbell, Jr. - President, Bridgestone Multimedia Group, Inc.
George T. Cook - Sr. Vice President, Salomon Smith Barney, Inc.
Leslie Dietzman - President, Family Christian Stores
Hon. Charles Grassley - U.S. Senator, Iowa
David Hartman - Managing Director, Chubb Insurance Group
Dee Jepsen - President, Enough Is Enough; former aide to President Reagan
Dean Jones - Actor, Producer
William Kanaga - Chairman (retired), Arthur Young, CPA’s; former Chairman, U.S. Chamber of Commerce
Al Kasha - President, MTM Music; two time Academy Award-winning composer
Joel"Buff" Kizer - Chief of Staff, Warburg Dillon Read
Tom Landry - former Head Coach, Dallas Cowboys
Keith Lang - Vice President, AIS Container Corp.
Holly McClure - Radio Personality, Film Critic
Michael Medved - Author, Film Critic, Talk Show Host
Joe Paterno - Head Coach, Penn State University
Arthur Taylor - President, Muhlenberg College; former President, CBS
Dar VanderArk - Executive Director, MDAC
Kenneth Wales - Executive Producer film and TV
Patricia A. Warner - Administrator, C. S. Mott Children’s Hospital, University of Michigan Medical Center
Rev. B. J. Weber - President, New York Fellowship
C. Frederick Wehba - Chairman & CEO, Bentley Forbes Group, Inc.
Lisa Whelchel - Actress, Recording Artist

COVER LETTER
COPY

Tuesday, January 26, 1999

Dear (studio executive):

Do the MPAA ratings influence a film's profitability? We wanted to find out -- especially if those findings would support the creation of more family-oriented movies.

The Dove Foundation's mission is to encourage and promote the creation, production and distribution of wholesome, family entertainment. The foundation commissioned a comprehensive study to determine which films by MPAA rating are the most profitable. The enclosed report is the result of compiling ten years of data on the income and expense of major film releases between 1988 and 1997. The results dramatically demonstrate that PG and G-rated films are far more profitable than their R-rated counterparts, in spite of the fact that filmmakers consistently produce a disproportionate share of R-rated movies year after year.

The data, secured from Kagan Media Appraisals, includes worldwide revenue from box office, television, home video. The study calculates major expense categories such as production, exhibitor fees, print and advertising and video duplication. It does not reflect all expense categories such as overhead and depreciation -- nor does it include income from such ancillary sources as licensing revenues from toy and game manufacturers, etc.. All in all, the data presents a well balanced picture of relative profits per film, as well as an average rate of return per film, in each MPAA category.

I hope you will receive this information in the spirit in which it is given. My ultimate goal is for you and your colleagues to take this study into consideration when making your film selections. I trust that producing and releasing films that you can take your own family to see, while reaping an attractive rate of return, will be a doubly rewarding experience.

A complete copy of the study is posted in a downloadable format on the Internet at http://www.dove.org/reports.

Sincerely,

Dick Rolfe,
President & CEO

dr/jm

enclosure: