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For movies, G is for gold
Study says movies rated suitable for general audiences are far more profitable than more adult fare.
June 7, 2005: 1:33 PM EDT

NEW YORK (CNN/Money) - To score really big at the box office, Hollywood should be chasing down the (much) younger generation, a new study says.

The average G-rated film made between 1989 and 2003 produced more than 11 times greater profit than its R-rated counterpart, $79 million vs. $7 million, even though the movie industry produced nearly 12 times more R-rated films than G-rated films, a media advocacy group.

The Grand Rapids, Mich.-based non-profit, which says it pushes for films with a Judeo-Christian ethic, said G-rated, or general admission, films produced three times the rate of return on investment that R-rated films generate.

The report also said G-rated film produce higher net profit per film, video revenue per film, and rate of return per film.

"For several decades, Hollywood has tried to ignore the increasingly overwhelming evidence that edgy, adult-themed entertainment usually constitutes a bad investment and a sucker bet at the box office," Michael Medved, radio host and film critic, said in the report.

According to the study, Hollywood produced nearly four times the edgier PG-13 films than less risque PG films between 2000 and 2003. But, during that same time, the average PG film produced $33 million greater profit than a PG-13 film, $78.8 million vs. $45.6 million.

Disney's (Research) Buena Vista produced the largest proportion of the G movies, with 52.3 percent, and also produced 16.3 percent of the PG films released during the study period. On the other hand, the company's Miramax/Dimension division released the most R-rated films with 61 titles, or 11.4 percent of the total.

Officials of the movie industry's trade group, the Motion Picture Association of America, would not comment immediately on the findings.

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