Recommendations to A24 to Control Financial Risks in Film Distribution

This is the authors' abstract. We don't add key points for this paper.

This paper explores the financial risks associated with film production to guide A24 in making strategic business decisions. The analysis incorporates eight key variables: US gross, worldwide gross, audience vote counts, film genres, run time, the involvement of acclaimed directors with prestigious award nominations or wins, critical scores from Rotten Tomatoes, and production budgets. A long-term multiple linear regression model identifies a strong correlation between film genres and worldwide gross, while the short-term model highlights critical scores and other factors as significant predictors of box office performance. Based on these findings, distinct strategies are proposed for short and long-term planning. In the short term, prioritizing films with strong critical scores is recommended, alongside increasing advertising budgets for highly rated films. Leveraging social media engagement, as indicators such as likes and comments are closely linked to revenue, is also advised. Additionally, integrating AI in screenwriting processes can help reduce production costs. For long-term growth, strategic recommendations include focusing on specific film genres, selecting experienced directors, enhancing audience engagement beyond traditional cinema, and expanding into streaming services, which have seen substantial growth since the COVID-19 pandemic.