Factors That Can Increase A Movie 's Domestic Gross Revenue

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I will be analyzing some factors that can increase a movie’s domestic gross revenue. Since I was a kid, I have always loved movies. I thought of movies more as an art form rather than just another source of entertainment. Each movie is unique, there will always a new movie to amaze people, and ever evolving due to changing minds and technologies. I’ve hardly ever thought about it being a huge, growing business. In this research, I want to see if a movie can be successful without factoring in variables such as actors, story, ratings, genres, company, sequels, or any other factor that can influence a consumer’s mind. This will be what the producer can do to maximize profit. I will be looking at the production budget, how many theaters the…show more content…
It’ll make more money because more people will have more opportunity to watch it. So, I think that movies will make more money if it is in more theaters around the world. At the same time, it could also decrease domestic gross revenue. It cost money to put movies in the box office and putting it theaters, but I believe that it will increase gross revenue for the most part. The third variable that I researched was how long the movies were in theaters for. Like the last variable, it gives the movie more time to accumulate revenue. It’s like the second variable, the longer it is in theaters, the more money they can make. Once a movie leaves theaters it loses its chance to showcase itself to the world then goes away before it comes out on DVD. If people haven’t seen the movie in theaters then they won’t buy the DVD. Staying in theaters can also cost the movie a lot of money just like the second variable but I think days in theaters has a positive relationship with gross revenue.

The table above is a descriptive statistics analysis of 30 random box office movies from 2016. The average domestic gross revenue is around 62.96 million while the average of the production budget is around 59.37 million. On average, all the movies stay in the theaters for about 73.5 days and in a mean of 2781 theaters.
The regression equation is:

R2 is .7418 which means that 74.18% of domestic gross revenue can be explained by the 3 variables. The first intercept in the

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