Comparing the Average Studio Profitability Results
to Films Meeting CFI Profitability Requirements
To clear a profit in North America box offices, the average “gross as compared to production cost ratio” needs to be at least 183 percent.
Studios:
In 2005, the MPAA reported that studio produced film cost $60.0 million to make on average and only grossed $37.1 million on average in North America.
The industry’s domestic box-office “gross as compared to production cost ratio” was only 62 percent for 2005. (That’s less than half of what it needed to be to achieve domestic box-office profitability.)
vs.
Films meeting CFI profitability requirements:
In 2005, CFI vetted films (films that met the minimum CFI requirement for profitability) cost only $37.19 million to make on average and then went on to gross $92.77 million on average in North America.
CFI vetted film’s “gross as compared to production cost ratio” was over 248 percent for 2005.
A much higher ration than what was needed for profitability.
And based on the production data from 1999 to 2005…
CFI vetted films cost only $40.23 million to make on average, and grossed over $110.5 million on average at the North American box office (while grossing an average of over $101.2 million overseas.)
From 1999 to 2005, CFI vetted films “gross as compared to production cost ratio” was 275 percent on average just in North America.
Bottom line…
CFI vetted films between 1999 and 2005 cost a third less to make … and grossed three times more than the average studio production in North America 2005.
Interesting CFI stats:
If a film has NO component formulation errors, it will profit domestically, and there is also:
1. a 73% chance that it will do over $100 million at the worldwide box office
2. a 50% chance that it will do over $200 million in worldwide gross
3. a 20% chance it will do over $300 million in worldwide gross.
While any film that contains formulation errors - has a 77% chance that it will fail to profit.