What are the main factors affecting movie profitability?
Sammanfattning: This thesis consists of two parts which both focus on the profitability of movies with a theatrical release. The first part has examined if it is possible to create a model for predicting and understanding the profitability of movies. Factors that influence the profitability have also been identified. This has been achieved through a regression analysis with data on movies from 2015-2017. A final multiple regression model has been created which explains 41% of the variability in the data. Significant influencing factors with at least a level of 5% significance have been identified such as the genres Horror and Musical, the MPAA-ratings PG and PG-13, the creative types Historical Fiction and Dramatization, Rotten Tomatoes Score and Sequel. The second part is an analysis on movie theaters as a distribution channel with respect to profitability for distribution companies using Porter's five forces. The five forces analysis suggests that movie theaters are a good distribution channel for studios which can provide mainstream movies while studios should consider releasing their low profile movies directly to streaming services since it might be more profitable.
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