Motion Picture Industry

This very brief report presented a discussion about the economics of the motion picture industry to conclude that box-office revenues for motion pictures exhibit a Levy stable process that is asymptotically Pareto-distributed with infinite variance. Thus, relatively few of the numerous movies produced are box-office blockbusters. However, higher quality productions with a concept with mass appeal, a star cast, good budget, screenplay, effects etc. can become a blockbuster if good word of mouth and reviews propel marketing and advertising efforts. Thus, content is still king and that which appeals to the audience will earn more in an economy with higher levels of affluence and more leisure time.