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TYLER PERRY SECRETLY RUNS HOLLYWOOD: Filmmaker beats Cruise, Hanks and Depp in reaping highest return on investment for studios.
*Madea brought her housedress and .22 pistol to Hollywood and put the entire industry in a headlock as if it was her bothersome next door neighbor, Brown.
According to BusinessWeek magazine, Tyler Perry’s role as Madea in two films adapted from his successful stage plays has placed him above all other actors, including Tom Cruise, Tom Hanks, Johnny Depp and Adam Sandler, as yielding the highest return on investments made by movie studios. The distinction also gives Perry BusinessWeek.com's ROI (Return on Investments) Award.
Neither Perry’s "Diary of a Mad Black Woman" in 2005, nor his "Madea's Family Reunion" earlier this year passed the $100 million mark that signifies blockbusters, but each film cost under $6 million to produce. You do the math.
“As any first-year business student knows, a return on investment is a measure of benefit a company gets for the money it spends to do business,” explains BusinessWeek. “Expressed as a percentage or ratio, it is derived by dividing the benefit of the investment (i.e. the return) by the cost of the investment. In Hollywood terms, that's like trying to catch water in your hand. Costs are hard to get and even harder to decipher in the fantasy world of Hollywood accounting, while the returns are often shared with everyone from producers who once worked on the project to actors with enough pull to demand it.”
In researching the ROI award, BusinessWeek.com used published reports of cost estimates provided by the Web site IMDb.com and applied the 2005 average marketing cost of $36 million a film.
The site adds: “We also applied the rule of thumb that a studio typically gets the proceeds from approximately half the tickets sold at the U.S. box office and the overall take from the box office is roughly one-third of the money a studio earns after a film has gone to play overseas and becomes a DVD or movie on pay TV.”
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