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MPAA: big budget root of problems.

MPAA: Big Budget Root of Problems

While sounding optimistic about the future, and stressing the growing importance of the foreign market, Jack Valenti, President of the MPAA, also tossed out a couple of bombshell statistics at the NATO/ShoWest meeting here.

First, he said the average budget of motion pictures produced by MPAA member-companies had hit $26.8 million in 1990, an increase of 14 per cent over the prior year.

Second, he said that of the 410 features produced last year - 82 less than in 1989 - only 30 had returned rentals in excess of $20 million to the distributors. That means only seven out of every 100 pictures going into release had hit the (modest) $20 million mark.

Third, he noted that foreign theatrical revenue was up by some 16 per cent in 1990, and home video income rose by 39%.

Valenti was referring to domestic theatre income only. He didn't count in the dollars rolling in from abroad, nor did he include international video and TV earnings.

On the positive side, Valenti said 1990 would go as the second largest year in Hollywood history, and that the final quarter of the year stacked up as the single largest quarter in Hollywood history, bringing in $1.25 billion.

Skyrocketing production budgets are at the root of many of Hollywood's problems, Valenti said, adding that he was equally concerned about rising marketing and print expenses. He predicted a diminution in the number of
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Title Annotation:The World; Motion Picture Association of America
Publication:Video Age International
Date:Mar 1, 1991
Words:243
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