Summer: The Season of Blockbusters

What you will learn

• Summary• In this issue of Math in the News we look at the

statistics behind summer blockbusters• Solve gross cost/profit problems• Analyze data in graphical form

What Is a Blockbuster?

• With movies, a blockbuster is a film that draws huge audiences and makes lots of money.• Summer has become the season where BIG

movies are anticipated and released for hordes of moviegoers to see.

Source: http://www.history.com/topics/black-history/muhammad-ali

A Brief History

Get a brief history of movie blockbusters with this video. (Note: The video is preceded by a short ad.)

• Yahoo News Storyhttps://www.yahoo.com/news/the-summer-blockbuster-explained-katie-couric-001218030.html?ref=gs

What Makes Summer A Good Time for Movies?

• School is out, so theaters can count on bigger audiences.• Families need something to do with their free time. • It is an affordable outing. • Movies are good for all ages. • Summer is HOT.

Source: http://www.investopedia.com/articles/investing/092414/what-drives-summer-blockbuster-movie-profits.asp; https://www.artinstitutes.edu/blog/the-science-of-summer-blockbusters

Summer Compared to Other Season

A comparison of earnings between summer and fall shows the success of summer movies.

Source: http://www.boxofficemojo.com/seasonal/?chart=byseason&season=Fall&view=releasedate

2011 2012 2013 2014 2015$0.00

$1,000.00

$2,000.00

$3,000.00

$4,000.00

$5,000.00

$6,000.00

Total Gross Earnings of Movies by Season

Summer Fall

Gros

s Ea

rnin

g in

Mill

ions

($)

The Movie Industry Has Caught On…

Hollywood production companies know that several qualities make for a blockbuster.

Source: http://www.investopedia.com/articles/investing/092414/what-drives-summer-blockbuster-movie-profits.asp; https://www.artinstitutes.edu/blog/the-science-of-summer-blockbusters

Family Friendly

Recognizable Stars

Big Special Effects BLOCKBUSTER

Past BlockbustersDo past blockbusters fit the bill?…..These do! What other summer movies fit the equation?

Source: http://www.investopedia.com/articles/investing/092414/what-drives-summer-blockbuster-movie-profits.asp; https://www.artinstitutes.edu/blog/the-science-of-summer-blockbusters

Family Friendly

Recognizable Stars

Big Special Effects HUNGER

GAMES

SPIDERMAN

Follow the Money

• Most important for production companies is the fact that these big summer movies tend to bring in big bucks. In fact, they bank on it.

• Blockbusters are costly to produce. • Budget: the amount of money it takes to produce a film.• Gross earnings: The amount of money the film brought in• Profit: Gross Earnings – Budget

• The goal of a blockbuster is to make a BIG profit.

Sourcehttp://www.gq.com/story/manny-pacquiao-boxer; http://www.pinoygreats.com/

Profit AnalysisLets take a look at one of the Summer blockbusters and see how it

did. (Source: http://www.the-numbers.com/movie/budgets/all )

Source: http://www.the-numbers.com/movie/budgets/all

• WHAT WAS THE PROFIT OF AVATAR?

Budget in Millions Gross Earnings in Millions

Profit in Millions

$425 $760.5 $?

Avatar Profit Analysis

PROFIT ANALYSIS

Profit = Gross Earnings – Budget

Source: http://www.the-numbers.com/movie/budgets/all

Problem: Avatar Profit?

Solution: Gross Domestic Earnings (millions): $760.5Budget: $425

Profit = 760.5 – 425

335.5 = 760.5 – 425

Avatar Profit = $335.5

Summary

• This graph summarizes the relationship between profit and budget for the movie.

• Do you think this is typical of most blockbuster movies?

• What would it mean for the green section to be greater than 50%?

$335.50

Avatar

Budget in Millions Profit in Millions

$425

Now It’s Your Turn• Analyze a blockbuster: • Pick one of your favorite blockbusters from the last few summers. • Visit http://www.the-numbers.com/movie/budgets/all . • Search your movie in the search box. • Or use the data from the next slide.• Look at the gross earnings and the budget, and create a pie chart

to show the profit.

Source: http://www.the-numbers.com/movie/budgets/all

Box Office Data

Source: http://www.the-numbers.com/movie/budgets/all