1. Do MPAA Ratings Affect Revenues at the Box Office?
Daniel R. Ellis
Georgia College & State University

2. Motion Picture Association of America
Created in 1922 by major studio presidents to protect the industry from government censorship
MPAA content rating system by Jack Valenti in 1968
Ratings are evaluated by boards comprised of “the average parent” G PG R X
General Audiences
Mature audiences
Under 16 with parent
Restricted under 16

3. Age Ratings G PG PG-13 R NC-17* Current system circa 1984
Minimal violence
Some violence
Unrealistic Violence
Persistent Violence
N/A
No nudity
Brief nudity
Non-sexually-oriented Nudity
Sexually-oriented nudity
Aberrational Behavior
No profanity
Some profanity
1 “Fuck”
Hard Language
No drugs
Drug use
Drug abuse

4. 2003 is the most recent observation in previous research
Prior Literature
Litman (1983)
Prag &
Casavant (1994)
Stimpert &
Laux (2008)
Current Study
Age
Ratings
Not
Significant
2003 is the most recent observation in previous research

5. The Real World
“The MPAA rating is so inextricably tied to commercial success in the United States that directors generally work under a contractual requirement that they deliver a film with a certain rating.” - Ridley Scott

6. Simple Statistics

7. Data Sample of 524 films from 1992 – 2011
Revenues were adjusted for inflation to 2012
Control variables
Star Power Seasonality
Sequel Studio
Genre Release
Quality Reviews
Mean
Std Deviation
Min
Max
$112.43M
$122.44M
$4.95M
$1.021B

8. Empirical Model
Revenueit= Ratingit + Star_Powerit + Sequelit + Genreit + Qualityit + Seasonalityit + Studioit + Releaseit + Reviewsit + εit

9. Academy Award* Nominations
Results
Revenue in Millions
Coefficient
Standard Error
P-value
Star Power*
21.25
8.73
0.015
PG-13*
67.99
9.45
0.000
PG*
56.89
13.43 G
36.03
29.58
0.224
3-D
56.74
29.71
0.057
Sequel*
71.11
12.43
Animated*
46.90
22.07
0.034
Sci-Fi*
100.85
18.52
Action/Thriller*
52.83
12.10
Adventure/Family*
49.34
19.09
0.010
Comedy*
45.16
12.89
Average Review Score*
21.05
3.38
Academy Award* Nominations
16.57
2.90
Academy Award Wins*
15.01
5.10
0.003
Studio*
43.5
9.38
Constant
24.03

10. Academy Award* Nominations
Revenue in Millions
Coefficient
Standard Error
P-value
Star Power
-0.161
8.2
0.984
PG-13*
39.81
8.97
0.000
PG*
41.09
12.26
0.001 G
40.57
26.87
0.132
3-D
23.91
27.15
0.379
Sequel*
42.14
11.6
Animated
-17.54
20.92
0.402
Sci-Fi*
69.55
17.06
Action/Thriller*
22.62
11.35
0.047
Adventure/Family
9.52
17.73
0.591
Comedy
23.17
11.86
0.051
Average Review Score*
19.13
3.07
Academy Award* Nominations
17.54
2.64
Academy Award Wins*
10.08
4.65
0.031
Studio*
21.03
8.77
0.017
Seasonal*
16.91
7.46
0.024
Release*
0.055
0.005
Constant
22.45

11. Limitations Marketing and Advertising Production costs Writer/Director
Composer/soundtrack
Release of competing films
Unobserved Technological advances
Domestic less than 50% of total revenue

12. Does the MPAA increase youth access to violence?
Further Implications
Does the MPAA increase youth access to violence?
“Films that would previously have been rated R were increasingly assigned to PG-13.”
“ The rating system has allowed increasingly violent content to enter the PG-13 category.”
Recent study from the Annenberg Public Policy Center

13. Thank you