The Oscars, Sunday’s annual jamboree for the firm industry, are not just a boost for its cast and crew but also for the media companies that distribute the films.
In 2001, research by Randy Nelson found that a film nominated for Best Picture at the Oscars would provide a US$4.7mln rise in box office revenues.
Winning the coveted award was found to increase the earnings of a film by around US$12.6mln, the report added.
“In this very competitive market, media companies will take any road they can, and the Oscars are a long-established method to boost their stock,” said Paula Landry, film analyst and author.
In 2007 Warner Bros saw an 11% growth in share price when its film, The Departed, won the 2007 Best Picture, but the impact has lessened as time has progressed.
Last year, CODA won the best picture and shares in producer Apple rose by 1.9% overnight but was back at the pre-win price by the end of the week.
So why do investors care less about the award winners?
Cinemas Snubbed
Companies like Paramount, Universal and Disney have all been forced to shift their strategies in the last decade due to the meteoric rise of streaming.
Cinemas -bruised by new players Netflix and Amazon Prime- have been left on life support over the last few years as many venues were forced to shut down during the lockdown.
Cineworld, a listed cinema operator, is currently facing bankruptcy in the US as it grapples with US$5bln in debt, its share price is down 96%.
Privately-owned Vue is also struggling, forced to convert its £700mln debt into equity last year in a last-ditch effort for cash.
Streaming the big winner
Nowadays a film’s success isn’t as closely tied to the box-office revenues it brings in, but in a growing number of cases, it is the number of streams that define a hit.
Netflix began distributing its own content in 2012 and as of March 2022, it had more than 3,700 original shows and films.
Right now, all ten of Netflix’s most globally watched films are originals, with a record 18mln people believed to have watched number one ranked Red Notice in the first month of release.
Originals Don’t Look Up and The Power of the Dog both received Best Picture nominations in 2022 as the streaming service picked up 27 nominations.
This year, with 11 fewer nominations the company looks to be a strong favourite to take home the main prize with “All Quiet on the Western Front” which has already won best film at the BAFTAs.
According to Netflix’s data, the film has not been a massive hit with users.
In the UK, it only remained in the top 10 for 4 weeks at release -peaking at the number 3 spot- and globally it dropped out of the rankings after one week.
After nomination, viewership in the UK and the US increased as the film found itself back in the top ten list of both countries.
But film executives may be looking towards a different medium nowadays.
Some of the most streamed content is TV series, with services benefiting from keeping customers online for longer.
Original Shows like The Crown, The Handmaids Tale and Black Mirror have all picked up Emmys and Golden Globes and received strong viewership as a result.
While these wins may not directly boost the share price, it draws in customers not just for a one-off watch but for years as viewers wait for newer series.
So it may be that the streaming services with the best series are the most equipped to succeed but don’t expect anyone to say that in the acceptance speeches.