The Academy of Motion Picture Arts and Sciences, known for its prestigious awards show, the Oscars, recently released a 188-page Official Statement providing insights into its operations. The document sheds light on various aspects, including viewership numbers, international audience, potential strikes, museum-related fundraising, and membership statistics. These details paint a complex picture of the Academy’s financial landscape and hint at potential challenges that lie ahead.
The Official Statement reveals intriguing information about the viewership numbers for the 2023 Oscar telecast. According to Nielsen, the average number of same-day viewers increased by 12.6% compared to the previous year, reaching 18.8 million. Furthermore, the number of people who watched the show over a seven-day stretch rose by 13.1% to 19.9 million. However, the number of “unique viewers” who watched for six minutes or more only grew by 9.7%, from 29 million to 31.8 million.
This data indicates that while the overall viewership increased, the rate of growth for new viewers was relatively low. It suggests that the loyal core audience remains the primary driving force behind the show’s success, with a slower rebound from the historic low of 2021.
An interesting revelation in the Official Statement pertains to the international viewership of the Oscars. Contrary to previously inflated reports of 1 billion viewers outside the United States in the 1980s, the Academy discloses that the actual number of international viewers for the 2023 show was just 17.5 million. This significantly lower figure explains the relatively modest fees the Academy expects to collect from its international television contract, amounting to approximately $79.4 million through 2028.
In comparison, the Academy anticipates receiving $745.8 million from ABC’s domestic broadcast contract over the same period, highlighting the significant disparity between domestic and foreign revenue sources. The dependence on domestic earnings continues to overshadow the international market by a margin of 9-to-1.
The Official Statement acknowledges the potential risks posed by ongoing strikes in the entertainment industry. Hollywood’s writers and actors’ strikes could result in the postponement, cancellation, or negative impact on the 2024 Oscar awards show. This could lead to revenue loss and a reduced number of films available for consideration in future shows.
The statement’s wording states, “The strikes could result in fewer films being available for Oscar consideration either at the 2024 Oscar awards show or at future Oscar awards shows.” This cautionary language emphasizes the uncertain and delicate balance of planning major events in an industry that is susceptible to labor disruptions.
The Official Statement reveals that fundraising for the Academy’s museum is ongoing. However, it raises concerns about the acquisition of new commitments from additional donors. There is no certainty regarding the fulfillment of these commitments or the honoring of such pledges by the donors.
The statement highlights that $104 million, which accounts for 27% of the museum’s $388.4 million in pre-opening pledges, is yet to be delivered. The Academy hopes to receive $69.6 million by June 2028 and an additional $31.1 million by 2036. However, the remaining balance remains uncertain, leaving room for potential financial challenges in the future.
The Official Statement divulges information about the Academy’s membership. As of June 21, the Academy has 10,261 voting members and 10,419 active members. Among the different branches, actors hold the highest number of voting members, with 1,276 members. They are followed by short films and feature animation with 858 members, and executives with 720 members.
The bonds recently offered by the Academy, alongside other payments, are expected to yield a total of $142.5 million. After deducting $1.1 million in fees, this amount will be used to redeem an equivalent value of higher interest series 2015A bonds.
However, the payment tables highlight significant principle payments of $98.8 million and $100 million due in 2030 and 2031, respectively. These obligations suggest the likelihood of refinancing with future bonds, necessitating future disclosure documents and potentially revealing further insights into the Academy’s financial state.
The Academy’s Official Statement presents a comprehensive overview of various aspects, including viewership numbers, international audience, potential strikes, museum fundraising, and membership statistics. The insights provided demonstrate the complex nature of the Academy’s operations and the challenges it faces. Understanding these factors is essential for assessing the economic health and future prospects of the Academy of Motion Picture Arts and Sciences.