Lordmandeep Posted January 2, 2017 Share Posted January 2, 2017 (edited) When we think of exchange rates we think of the overseas markets. For exchange rates there is an effect even in the domestic market. Unless I am wrong and the studios dont covert the Canadian grosses using real time exchange rates for the overall domestic gross...there is an impact Look at the following... In 2009/2010 Avatar mde 96 million in Canadian Dollars and the exchange rate with the Canadian Dollar was around par so it made around 96 million dollars US for the overall total give or take a few million. In 2016/2017 the same 96 million Canadian total would be 72 million dollars USD Doubt Avatar 2 total will make that much in Canadian dollars but still. It has an effect something like The Avengers made 58 million Cad which the rate was around Par then. Jurassic World made around 54 million CAD in 2015 and it be around 43 million USD at that time... If the Canadian Dollar was at par was released SW7 would have made around 25-26 million more domestic I think... (assuming Sw7 made around 85-90 million Canadian based on it making 58 million by Dec 31st 2016 and by then it made 66% of its gross so 58 million divided .66=88 million) and 88 million times .70 XE rate is 66 million. The rate during SW7 was at a 10-15 year low as well... Edited January 2, 2017 by Lordmandeep 6 Quote Link to comment Share on other sites More sharing options...
The Panda Posted January 2, 2017 Share Posted January 2, 2017 It probably depends on what the real exchange rates are, rather than the nominal ones. I get rather fuzzy when talking about exchange rates though, and would rather not go to indepth on it at the time. In short. I guess it depends if you exchange 5 US dollars for x Canadian dollars (depending on E) if you can buy the same amount of movie tickets as the previous year, despite how many Canadian dollars you get back. If the answer is yes, then there's no effect, if the answer is no then there is one. 1 Quote Link to comment Share on other sites More sharing options...
Plain Old Tele Posted January 2, 2017 Share Posted January 2, 2017 Maybe I should move to Canada. 5 Quote Link to comment Share on other sites More sharing options...
AniNate Posted January 2, 2017 Share Posted January 2, 2017 2 minutes ago, Grand Moff Tele said: Maybe I should move to Canada. You and half the voting public 2 Quote Link to comment Share on other sites More sharing options...
4815162342 Posted January 2, 2017 Share Posted January 2, 2017 4 minutes ago, Grand Moff Tele said: Maybe I should move to Canada. No, we invade Canada and get those extra electoral votes for the Light Side. 6 Quote Link to comment Share on other sites More sharing options...
AniNate Posted January 2, 2017 Share Posted January 2, 2017 I suppose the answer to the question at hand would be yes. Adjust your expectations accordingly, I guess. Quote Link to comment Share on other sites More sharing options...
Jason Posted January 2, 2017 Share Posted January 2, 2017 (edited) Here's another way of looking at it. I obtained data for the Canadian gross box office from 2005-2013 (Focus reports, UNESCO) and calculated the percentage of domestic box office for that year, then made a graph of Canadian domestic box office vs. the average nominal CAD/USD exchange rate for that year (Bank of Canada). The trendline was calculated forcing an intercept of zero (negative intercept doesn't make sense here), and extrapolated backwards to include current exchange rate. The R-squared value of 0.82 is statistically significant, and suggests that about 80% of the yearly differences in the Canadian contribution to domestic box office can be explained by changes in the exchange rate. The absolute decrease is small though (edit: to the total domestic box office). Comparing current exchange rate to peak exchange rate from 2011-2012, a difference of about 3%. Comparing current exchange rate to Avatar exchange rate, difference of about 1.5%. Edited January 2, 2017 by Jason added a clarification 7 Quote Link to comment Share on other sites More sharing options...
Lordmandeep Posted January 2, 2017 Author Share Posted January 2, 2017 3 hours ago, Grand Moff Tele said: Maybe I should move to Canada. Oh please my niece from Cali came here in the spring and was freezing to death and it was like 40s 2 Quote Link to comment Share on other sites More sharing options...
DeeCee Posted January 2, 2017 Share Posted January 2, 2017 3 hours ago, 4815162342 said: No, we invade Canada and get those extra electoral votes for the Light Side. The immeasurable power of each province being a state. 1 Quote Link to comment Share on other sites More sharing options...
elcaballero Posted January 2, 2017 Share Posted January 2, 2017 35 minutes ago, Jason said: Here's another way of looking at it. I obtained data for the Canadian gross box office from 2005-2013 (Focus reports, UNESCO) and calculated the percentage of domestic box office for that year, then made a graph of Canadian domestic box office vs. the average nominal CAD/USD exchange rate for that year (Bank of Canada). The trendline was calculated forcing an intercept of zero (negative intercept doesn't make sense here), and extrapolated backwards to include current exchange rate. The R-squared value of 0.82 is statistically significant, and suggests that about 80% of the yearly differences in the Canadian contribution to domestic box office can be explained by changes in the exchange rate. The absolute decrease is small though. Comparing current exchange rate to peak exchange rate from 2011-2012, a difference of about 3%. Comparing current exchange rate to Avatar exchange rate, difference of about 1.5%. Just to make sure that I'm understanding correctly, the Canadian share of the domestic box office has remained roughly the same, even as the exchange rate changed, right? Quote Link to comment Share on other sites More sharing options...
Jason Posted January 2, 2017 Share Posted January 2, 2017 (edited) 11 minutes ago, elcaballero said: Just to make sure that I'm understanding correctly, the Canadian share of the domestic box office has remained roughly the same, even as the exchange rate changed, right? The Canadian share of domestic box office changes roughly in proportion with changes in the exchange rate. However, because Canada's share of the domestic box office is small though (8%-10% in that data range), a weakening of the Canadian dollar by 10% would only reduce the total domestic box office by about 1%. Added a clarification to the original post. Edited January 2, 2017 by Jason 5 Quote Link to comment Share on other sites More sharing options...
DeeCee Posted January 2, 2017 Share Posted January 2, 2017 (edited) Although we focus on the daily reported box office figure don't forget that may not be the actual real dollar figure that finds it's way back to the studio. Studios and distributors have there own internal arrangements to account for exchange rates and transfers between internal parts of the company. Edited January 2, 2017 by DeeCee 2 Quote Link to comment Share on other sites More sharing options...
elcaballero Posted January 2, 2017 Share Posted January 2, 2017 2 hours ago, Jason said: The Canadian share of domestic box office changes roughly in proportion with changes in the exchange rate. However, because Canada's share of the domestic box office is small though (8%-10% in that data range), a weakening of the Canadian dollar by 10% would only reduce the total domestic box office by about 1%. Added a clarification to the original post. Gotcha. Thanks for the analysis! 1 Quote Link to comment Share on other sites More sharing options...
baumer Posted January 3, 2017 Share Posted January 3, 2017 7 hours ago, Grand Moff Tele said: Maybe I should move to Canada. You'd freeze to death here. I'd pay you to come to Toronto in February when it's -20 C. Seriously. I would pay for your plane ticket. It would be glorious. 3 Quote Link to comment Share on other sites More sharing options...
DAJK Posted January 3, 2017 Share Posted January 3, 2017 8 minutes ago, Christmas Baumer said: You'd freeze to death here. I'd pay you to come to Toronto in February when it's -20 C. Seriously. I would pay for your plane ticket. It would be glorious. Or he could come to BC where it's the dumbest mildest climate ever. 4 Quote Link to comment Share on other sites More sharing options...
Plain Old Tele Posted January 3, 2017 Share Posted January 3, 2017 10 minutes ago, Christmas Baumer said: You'd freeze to death here. I'd pay you to come to Toronto in February when it's -20 C. Seriously. I would pay for your plane ticket. It would be glorious. 2 minutes ago, DAJK said: Or he could come to BC where it's the dumbest mildest climate ever. Yeah, if I was this crazy, I'd target BC and plan for global warming to turn it into Northern California. 4 Quote Link to comment Share on other sites More sharing options...
DeeCee Posted January 3, 2017 Share Posted January 3, 2017 19 minutes ago, Grand Moff Tele said: Yeah, if I was this crazy, I'd target BC and plan for global warming to turn it into Northern California. I'd be really worried for you in Canada. You need to update the wardrobe. 5 Quote Link to comment Share on other sites More sharing options...
JB33 Posted January 3, 2017 Share Posted January 3, 2017 4 minutes ago, DeeCee said: I'd be really worried for you in Canada. You need to update the wardrobe. A bit early for showing me Spring clothes, isn't it? 5 Quote Link to comment Share on other sites More sharing options...
Lordmandeep Posted January 3, 2017 Author Share Posted January 3, 2017 In the end i think based on my analysis... A foreign exchange difference is material not in the overall picture but for grosses for major all time hit films. As I calculated it's about 26 million dollar difference for sw7. Quote Link to comment Share on other sites More sharing options...
baumer Posted January 3, 2017 Share Posted January 3, 2017 14 hours ago, Telemachos said: Yeah, if I was this crazy, I'd target BC and plan for global warming to turn it into Northern California. How about instead of meeting for the first time in LA, we take a trip and meet up in Whitehorse or Yellowknife, or even Juneau? Say sometime in February? 1 Quote Link to comment Share on other sites More sharing options...
