The Economics of Sequels

“Sequels only get made when the first movie is a huge success.

Contently
Chart via Contently

I was looking for the key to understanding the economics of sequels and was delighted to finally find it. I found it over here:

“It’s important to note that even though sequels usually make less money than their predecessors, they still make a lot more money than the average movie.” —Contently

Or more specifically:

“How does this work? If sequels are typically worse than their originals, why would sequels in a given year make more money than originals? The data actually tells the story quite nicely: Sequels only get made when the first movie is a huge success.” —Contently

“The researchers concluded that people prefer ongoing storylines that mix both safety and excitement. In other words, we want novelty, but we need familiarity.”

Contently

Another viewpoint:

“From this article I hope it’s apparent why studios release more sequels, adaptations and remakes than original films: they just make more money. And that’s to be expected. It’s hard to get someone interested in a film without some prior knowledge. There are more entertainment options than ever, so to get someone to leave their home buy a ticket and sit in a dark theater, for most people the movie had better be a safe bet. Even though most sequels are less liked than their predecessors, it’s easier to justify the trip for something you already know than an unknown entity. As long as films are dependent on ticket sales, sequels and remakes will rule the roost.”

via thefilmautopsy

DO SEQUEL MOVIES REALLY EARN MORE THAN NONSEQUELS? EVIDENCE FROM THE US BOX OFFICE

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