SNL Kagan Buys Tech Analysis Firm Multimedia Research Group

By | Monday August 5, 2013 @ 8:05am PDT

Charlottesville, VA (August 5, 2013) –SNL Kagan announced today it has acquired Multimedia Research Group, Inc. (MRG), a leading media and technology research firm based in Scottsdale, Arizona. SNL Kagan will expand its US and global coverage through this partnership, adding proprietary research, forecasts and analytics on an expanded suite of media technologies surrounding OTT video and pay-TV in markets around the world.

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‘Hobbit’ And ‘Les Miserables’ Drive December Movie Profits: SNL Kagan

By | Thursday January 17, 2013 @ 12:32pm PST

Warner Bros’ latest visit to Middle Earth should generate $1.26B in revenues from all major sources — 3.59 times its expected costs — putting it on track to become the most profitable movie released in December, SNL Kagan says today. The research company builds a financial model for films by using early box office results to estimate likely revenues from theaters, home video, and free and pay TV deals against probable costs. To account for many variables it can’t ascertain (including distribution fees, interest, profit participation, and residuals), Kagan figures a movie will be profitable if expected revenues are 1.75 times higher than estimated costs. Those with a lower ratio but that are still higher than 1.40 times are in a gray area. Films below that are deemed likely money losers. By that standard three other December films will end up in the black: Universal’s Les Miserables ($396.7M in expected revenues/2.37 times costs), Weinstein Company’s Django Unchained ($473.2M/2.18X) and Columbia Picture’s Zero Dark Thirty ($230.7M/2.10X). Those falling short include: Paramount’s Jack Reacher ($253.8M/1.38X), Universal’s This Is 40 ($159.5M/1.14X), Fox’s Parental Guidance ($163.3M/1.12X), Disney’s Monsters, Inc 3D ($75.0M/0.77X), Paramount’s The Guilt Trip ($89.1M/0.57X), and FilmDistrict’s Playing For Keeps ($37.7M/0.28X). Read More »

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TV Everywhere Is Still Mostly Nowhere In Pay TV Homes: Study

By | Wednesday October 24, 2012 @ 3:35pm PDT

Cable and satellite companies have a well-deserved reputation for being terrible marketers. (How many other industries would describe consumer products with terms such as “DOCSIS 3.0″ and “EBIF-Enabled”?) Still, I thought the industry would do better with TV Everywhere. Execs sure … Read More »

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‘Madagascar 3′ And ‘Magic Mike’ Lead Movie Profit Parade For June: Kagan

By | Wednesday July 25, 2012 @ 1:41pm PDT

Only four of last month’s 12 major movie releases are clearly destined to be profitable according to the latest monthly tally from SNL Kagan. The research firm says that DreamWorks Animation’s Madagascar 3: Europe’s Most Wanted should lead the pack with projected total revenues (at $783.3M) coming in 2.31 times higher than total costs (of $339.4M). Kagan forecasts each film’s revenues from all sources, except for merchandise and second-cycle TV sales. It compares that to all the expenses it can identify, except for things like distribution fees, interest, profit participations and residuals. Since Kagan can’t account for everything, it figures a film is clearly profitable if estimated revenues are at least 1.75 times estimated costs. Films with an expected revenues-to-costs ratio of at least 1.40 are considered to be in a gray areas while those below 1.40 are deemed likely unprofitable. By that standard, Warner Bros’ Magic Mike came in second at 2.23 ($252.6M revenues to $113.5M costs), followed by Universal’s Ted at 2.20 ($439.4M to $199.4M), and Disney/Pixar’s Brave at 2.11 ($788.9M to $374.1M). Those on the bubble are Lionsgate’s Tyler Perry’s Madea’s Witness Protection at 1.57 ($91.2M to $58.3M), Fox’s Prometheus at 1.54 ($450.7M to $292.0M), and Universal’s Snow White And The Huntsman at 1.52 ($531.4M to $349.7M). Read More »

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Domestic Movie Revenues Aren’t Keeping Up With Release Costs: Kagan

By | Wednesday June 6, 2012 @ 7:14am PDT

The mostly dreary new analysis from SNL Kagan reflects the continuing decline last year in domestic home video sales and rentals — and helps to explain why studios are so determined to expand overseas. The research firm says that the … Read More »

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Animation Still Decade’s Most Profitable Movie Genre: SNL Kagan

By | Tuesday April 10, 2012 @ 3:50pm PDT

It was a close contest but sci-fi/fantasy films came in second in the research firm’s analysis of different films’ financial performance in the decade from 2002 through 2011. Since analysts can’t tell how much studios spend for things like negatives, marketing, and DVD reproduction, SNL Kagan figures a film is clearly profitable if the revenues it can estimate from all sources are at least 75% higher than the costs it can calculate. Those with margins of at least 40% are considered to be on the bubble (profitability usually depends on specific deals the studios have with theaters) while movies below 40% probably lost money.  By that measure, the decade’s 1,444 films were on the bubble with average worldwide revenues per film of $216.6M and costs of $133.3M, resulting in a 63% margin. The best investments overall were animated films that had a budget of between $90M and $100M: The five films in that category had a 292% margin. The worst performers were two westerns with a budget of $50M or less; costs ran 80% ahead of revenues. Read More »

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Sports Fees Vex Cable Execs: UBS Confab

By | Monday December 5, 2011 @ 8:43pm PST

The per-household subscription fees ESPN charges cable systems amounts to “a tax on every American household,” Liberty Media Corp. CEO Greg Maffei said Monday at an investor conference sponsored by UBS AG in New York City. ESPN charges are the highest … Read More »

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Kagan: ‘The Help’ Is The Most Profitable Film From A Month With Few Successes

DreamWorks and Disney’s The Help and Fox’s Rise of the Planet of the Apes are the only two August releases that can be sure of making a profit, although New Line’s Final Destination 5 could make it over the line, … Read More »

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SNL Kagan: 10% Of All Homes Will Cut Pay TV Cord By End Of 2015

Some bad news today for the cable and satellite companies that have been pooh-poohing the possibility that millions of subscribers will cut the pay TV cord. Researchers at SNL Kagan — one of the most cable-friendly forecasting firms — say … Read More »

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Kagan: ‘Pirates,’ ‘Hangover,’ And ‘Bridesmaids’ Lead The Profit Parade For May

Looks like May wasn’t so bad for movie studios after all. Five of the month’s eight major theatrical releases tracked by SNL Kagan are poised to be profitable. Averaged together, each of the films will generate $464.7 million from theaters, home video, … Read More »

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Kagan: ‘Rio’ And ‘Fast Five’ Only Clearly Profitable Films In April With Summer Movie Profits Poised To Fall

Don’t be fooled by the headlines this summer that likely will focus on how strong movie ticket sales look compared to last year. Researchers at SNL Kagan predict that domestic box office for the period from late April to the … Read More »

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