meta-roj

Under the leadership of CEO, Jack Valenti, the MPAA represents the business of theatrical film, and claims to “serve as leader and advocate for major producers and distributors of entertainment programming for television, cable, home video and future delivery systems not yet imagined.” (source).

The MPAA board of directors consists of the Chairmen and Presidents of the seven major studios (Disney, Sony. Metro-Goldwyn-Mayer, Paramount, Twentieth Century Fox, Universal and Warner Brothers). These are big companies with diverse interests. Disney, for example, does a bit of business in theme parks. Sony makes electronic gadgets. But they all come together under the umbrella of the MPAA to protect and defend their film studio businesses.

So, I was just sitting around enjoying a bit of online banter, and then I made an off the cuff comment. Today, I will do a bit of homework. I leave it to my good readers and motivated commenters to do more homework if so desired.

According to MPAA statistics, the average US resident saw 5.7 movies in theaters during 2002, with an average ticket price of $5.81. This means the average person spent $33.12 to see movies in theaters in 2002. The same report (but different original source) claims that the average spending per person on home video in 2002 was $119.23.

This means the film industry received $152.35 from every person in the United States, 21.7% at the box office and 78.3% from home video.

Admittedly, these are very broad strokes, but the same report also reveals that 1185.8 million units of prerecorded VHS and DVD material were sold in 2002. VHS prices are not indicated, but the 702.4 million DVD units apparently had an average price of $20.78. This represents gross sales on DVD of $14.6 billion, compared to gross box office receipts of $9.5 billion. That means the film industry received $1.54 from DVD sales for every dollar of box office reciepts (and some additional pennies from VHS sales…).

The way I read this, the VCR (and the sequel, VCR2: The DVD) now constitute the majority of revenue for the film industry, and thus the majority of the seven-figure salary (and piles of perks) for the MPAA CEO, Jack Valenti. (Yes, yes, there’s a big difference between revenue and the net profits used to fund the multi-million-dollar payroll and lobbying efforts of the MPAA, but I did say you could do more homework…)

Jack Valenti, Congressional Hearings on Home Recording, Before the Subcommittee of Courts, Civil Liberties and the Administration of Justice of the Committee on the Judiciary, House of Representatives, 97th Congress, Second Session, April 12, 1982.

I say to you that the VCR is to the American film producer and the American public as the Boston strangler is to the woman home alone.

So tell me, Jack, 20 years later, how does it feel to be on the strangler’s payroll?