The document discusses summer blockbuster movies. Some key points: - Summer is the peak movie season due to school being out and families looking for affordable entertainment options. - Blockbusters are big-budget films released in the summer that draw huge audiences and make substantial profits. They typically feature recognizable stars, special effects, and family-friendly content. - Examples of past summer blockbusters that fit this profile are provided. - Data on the budget and earnings of Avatar, a highly successful blockbuster, show it had a budget of $425 million and grossed $760.5 million, resulting in a profit of $335.5 million.

1. Summer: The Season of
Blockbusters

2. 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

3. 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

4. A Brief History
Get a brief history of movie blockbusters with this
video. (Note: The video is preceded by a short ad.)
• Yahoo News Story
https://www.yahoo.com/news/the-summer-
blockbuster-explained-katie-couric-
001218030.html?ref=gs

5. 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

6. 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
$0.00
$1,000.00
$2,000.00
$3,000.00
$4,000.00
$5,000.00
$6,000.00
2011 2012 2013 2014 2015
GrossEarninginMillions($)
Total Gross Earnings of Movies by Season
Summer Fall

7. 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

8. Past Blockbusters
Do 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

9. 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/

10. Profit Analysis
Lets 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

11. PROFIT ANALYSIS
Profit = Gross Earnings – Budget
Source: http://www.the-numbers.com/movie/budgets/all
Problem: Avatar Profit?
Solution:
Gross Domestic Earnings (millions): $760.5
Budget: $425
Profit = 760.5 – 425
335.5 = 760.5 – 425
Avatar Profit = $335.5

12. 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

13. 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

14. Box Office Data
Source: http://www.the-numbers.com/movie/budgets/all