Family films outdrew R-rated movies in '04
By Scott Bowles, USA TODAY

LAS VEGAS — For the first time in two decades, PG-rated films outperformed R-rated films in theaters, even though Hollywood cranks out many more movies aimed at adults.

PG-13-rated films remain the king of the industry, accounting for $4.4 billion last year, according to theater owners.

The figures, released Tuesday during the annual state-of-the-industry address at the ShoWest convention of theater owners, testify to the growing strength of family filmgoers, says the owners' association president, John Fithian.

"Diversity is great, but family films sell better than R-rated films," Fithian says. "Sometimes it seems like Hollywood overlooks the middle of the country, which wants movies that everyone can enjoy."

Last year, three ratings brought in the lion's share of the $9.54 billion domestic box office. The five NC-17 and 29 G-rated movies brought in a combined $74,000,000. How the more dominant ratings stacked up:

Box office in billions
(Number of films released)

PG: $23B (110 films)
PG-13: $4.4B (187 films)
R: $21B (540 films)

Source: MPAA, National Association of Theatre Owners

In 2004, five of the 10 top-grossing films were rated PG, including the year's biggest film, Shrek 2, which took in $441.2 million. But only four R-rated movies cracked last year's top 25. The biggest was The Passion of the Christ, which took in $370.3 million.

Robert Bucksbaum, president of the industry tracking firm Reelsource and owner of two theaters, says the surge in PG films is a sign of a larger cultural shift.

"There are really two types of films: R-rated and non-R-rated," he says. "Parents aren't too worried about taking their kids to see a G, PG or PG-13 movie. But they aren't going to take them to an R movie."

Adds Fithian: "There's more money in family movies. Families buy more tickets."

Overall, moviegoers didn't buy as many as in the previous two years, however. Attendance declined slightly in 2004: Roughly 1.536 billion tickets were sold last year, compared with 1.57 billion in 2003 and 1.63 billion in 2002.

The average Hollywood film cost $63.6 million to make and $34.4 million to market, down 5% from 2003, because studios placed fewer TV and newspaper ads.

And ticket prices continue to climb, rising 3% to an average of $6.21 a ticket last year.

Still, MPAA president Dan Glickman notes that theater admissions have risen 67% from 1970 to 2004 and that movie tickets are inexpensive compared with other entertainment. He said an average Major League Baseball ticket cost $19.82 last year, and a Broadway ticket cost an average of $66.40.

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