Abstract
R-rated films are correlated with lower box office revenues. Using sex and nudity content as an instrument to predict R-ratings, we show that R-ratings themselves are not the cause of lower revenues. Instead, R-rated films contain traits that lower revenues and the ratings act as a signal of those traits. Why do film producers include those traits and seek R-ratings? We show that R-ratings alter the shape of the distribution of critical reviews, shifting the distribution to the right. Moreover, even after controlling for other influences, R-ratings improve critical reviews, suggesting that producers not only seek box office revenues, but also critical acclaim.
Highlights
In the summer of 2012, Universal Pictures released a comedy film in which a child’s teddy bear comes to life to become the child’s best friend
We provide evidence that R-ratings positively correlate with critical acclaim, even after controlling for other film attributes
Their empirical work and explanation raise a more fundamental empirical question: Are R-ratings themselves the source of lower revenues or do R-ratings merely indicate the presence of other factors? That question has not been directly addressed in the literature, yet it is a critical issue in sorting out the role and explanation of R-ratings
Summary
In the summer of 2012, Universal Pictures released a comedy film in which a child’s teddy bear comes to life to become the child’s best friend. Numerous Hollywood films have revolved around similar plots of childhood toys coming to life, this particular movie, entitled Ted, was different DeVany and Walls attribute it to the fact that R-rated films display even greater uncertainty and risk than non-rated R films, but that certain high-grossing R-rated films generate exceptional prestige, creating an incentive for influential stars to lobby for their production. Their empirical work and explanation raise a more fundamental empirical question: Are R-ratings themselves the source of lower revenues or do R-ratings merely indicate the presence of other factors? Their empirical work and explanation raise a more fundamental empirical question: Are R-ratings themselves the source of lower revenues or do R-ratings merely indicate the presence of other factors? That question has not been directly addressed in the literature, yet it is a critical issue in sorting out the role and explanation of R-ratings
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