Documents in the NTIS Technical Reports collection are the results of federally funded research. They are directly submitted to or collected by NTIS from Federal agencies for permanent accessibility to industry, academia and the public.  Before purchasing from NTIS, you may want to check for free access from (1) the issuing organization's website; (2) the U.S. Government Printing Office's Federal Digital System website; (3) the federal government Internet portal; or (4) a web search conducted using a commercial search engine such as
Accession Number PB2014-101228
Title Theatrical Movies As Capital Assets.
Publication Date May 2013
Media Count 47p
Personal Author R. Soloveichik
Abstract In 2007, I estimate that studios spent $20.0 billion producing original theatrical movies. These movies were shown in theaters in 2008 and will be sold on DVD and broadcast on television for decades to come. Because of their long working life, the international guidelines for national accounts recommends that countries classify production of movies and other entertainment, literary and artistic originals as an investment activity and then depreciate those movies over time. However, BEA did not capitalize this category of intangible assets until the July 2013 benchmark revision. In order to change the national accounts, I collected data on movie production from 1915 to 2010. I then calculated how GDP statistics change when theatrical movies are classified as capital assets. To preview, my empirical results are: 1) Theatrical movies have a useful lifespan of at least 80 years; 2) Over the past decade, nominal movie production has grown slower than the overall economy. As a result, nominal GDP growth falls slightly when theatrical movie production is classified as a capital investment; 3) Thanks to improvements in computer technology; prices for shooting new movies have been constant over the past decade.
Keywords Assets
Fringe benefits
Operating costs
Payroll systems
Standard error
Theatrical movies

Source Agency Department of Commerce, Bureau of Economic Analysis
NTIS Subject Category 96A - Domestic Commerce, Marketing, & Economics
Corporate Author Bureau of Economic Analysis, Washington, DC.
Document Type Technical report
Title Note N/A
NTIS Issue Number 1403
Contract Number N/A

Science and Technology Highlights

See a sampling of the latest scientific, technical and engineering information from NTIS in the NTIS Technical Reports Newsletter

Acrobat Reader Mobile    Acrobat Reader