Saturday, October 16, 2021

REPORT: PARAMOUNT BOOSTS PROFITS BY SPENDING LESS

November 28, 2012 by · Leave a Comment 

Paramount’s strategy of putting out relatively low-budget films — and fewer films overall — may not have produced outsized box-office hits, but it is consistently produced profits, Daily Variety observed today (Wednesday). The trade publication noted that while Paramount has dropped to seventh place in market share and has seen its total revenue fall 19 percent, its operating profits have grown. (Last month’s quarterly filing by its owner Viacom showed a 19-percent drop in revenue for filmed entertainment but a 5-percent increase in operating profit.) Variety observed, “While the studio’s lower-risk, lower-return titles have commanded less global market share in 2012, they also helped the studio avoid a costly flop. And fewer films in production meant costs were slashed.” The studio’s most successful franchise: Paranormal Activity The four pictures released thus far together cost less than $15 million to produce but have earned $670 million.