Bad news for those of you who are sick of Hollywood’s flood of sequels, superheros, and animated films. Nomura analyst Anthony DiClemente says we’re going to see a lot more of them — and that’s a good thing for studios. He raised his stock forecasts for Disney, Fox, and Time Warner this morning, arguing that their efforts to appeal to overseas audiences should enable them to profit as international box office receipts grow an average of 5.5% a year to $57.6B in 2022.
Disney, Fox, and Time Warner have “increasingly shifted film production towards genres that resonate well within these markets,” he says. Sequels accounted for 76 of the 107 top grossing films in the 10 largest markets over the last 12 years. The hot genres also tend to be the most profitable: The average animated film from 2004 to 2013 generated a gross margin of 52%, followed by action with 40% — well ahead of drama at 30% and comedy at 22%.