Leveraging Predictive Models to Improve box Office| STAND 8 | Stand8
Like all film production studios, our client, a major broadcast media company was greatly impacted by the COVID-19 pandemic. Covering movie costs through box office sales is a top priority. In the midst of the pandemic, film titles were projected to underperform. It came down to effective marketing to yield higher gross box office receipts, but marketing was in a "must-win" situation. As marketing efforts increase, the cost of the film increases and cuts into the bottom line.
Our client needed to make data-driven decisions on which film titles would require more aggressive marketing to achieve the necessary return on investment.
STAND 8 Data Services developed multiple machine learning (ML) models to predict which film titles were projected to yield gross box office receipts below expectations. Identifying these "underperforming" film titles allowed the client to focus their marketing spend on titles that needed additional marketing.
These ML predictive models now enable proactive course corrections to maximize profits with each film release.
The project was an overwhelming success. Not only were executives able to pinpoint underperforming movies before their release, they were able to take action. Using STAND 8's predictive models, our client was able to turn certain deficits into resounding profits. In some cases, they made 160% ROI.
Here's a snapshot of the results.
$35M: The average distribution & marketing spend of a film title produced by a major movie studio.
$82M: Production costs for a film title released in July 2021 that was expected to flop.
$133M: Worldwide box office sales AFTER an aggressive marketing campaign was employed. Prior to the change in marketing strategy, one film was predicted to gross much less than production costs.