Average Cost of Studio Film Down 13% in 2001

Hollywood studios spent an average of $47.7 million to produce a film in 2001, down 13% from the previous year, Motion Picture Assn. of America President Jack Valenti said.

Marketing costs for the typical studio movie last year rose 14% to $31 million, he said. Valenti, the U.S. film industry’s chief spokesman and lobbyist, said the higher expenses came from increased television advertising. Combined production and marketing costs fell 4.1% to an average of $78.7 million.

Last year’s lower costs stand in contrast to the trend of the 1990s, when production and marketing expenses more than doubled for the major Hollywood studios. Valenti’s figures are based on data from MPAA members, including AOL Time Warner Inc.’s Warner Bros., Walt Disney Co., Viacom Inc.’s Paramount Pictures and News Corp.’s 20th Century Fox.