# Gini coefficients of five European film industries

Back in May 2010 I looked at the Gini coefficient of the opening grosses in the UK in 2009 (see here).

The Gini coefficient (G) is a measure of the inequality of a statistical distribution, ranging from perfect equality when all the members of a population have equal share in some property such as income (G = 0) to perfect inequality when all the property is owned by a single person (G = 1). This inequality can be represented as a Lorenz Curve, which shows the cumulative proportion of a property belonging to the cumulative proportion of a population. This can be interpreted in reference to the line y = x, which represents perfect equality, and the further away the Lorenz curve lies away from this line the more unequal distribution.

The Gini coefficient and the Lorenz Curve are useful for comparing the inequalities of different populations, and so this week I compare the Gini coefficients of the total grosses of films distributed in five European countries – France, Germany, Italy, Spain, and the UK – in 2011. The data used is from Box Office Mojo and all box office grosses are in US Dollars.

Table 1 shows the Gini coefficients for the total sample sizes and for the top 100 grossing films in each country. It is clear that the distribution of grosses in each country is very unequal, with the vast majority of the gross accumulated by a small number of films. The UK is more unequal than the continental countries. The highest grossing film in the UK in 2011 – Harry Potter and the Deathly Hallows (Part Two) – grossed \$117.23 million, accounting for 6.4% of the total accumulated gross. However, this was not the most dominant film in any of these countries: in France the highest grossing film was Intouchables, grossing \$116.13 million and accounting for 9.5% of the total accumulated gross. Nonetheless, the overall distribution of the other four countries are less unequal, indicating that the UK box office tends to have fewer mid-range films. For example, it appears from the Lorenz curves in Figures 1 through 5 below that the comparatively high value of G for the UK is the result of the larger number of very, very low grossing films in the UK that are not present in the other countries and the very rapid shift to very high grossing films at the top end of the distribution. This is not present in Germany (Figure 2) or Italy (Figure 3), for example, which show much smoother transitions from the lowest to the highest grossing films.

Comparing the Gini coefficients for just the top 100 grossing films shows the UK to be no more unequal for this sub-group than France, Germany, or Italy. This sub-group does account for a higher proportion of the total gross than in these other countries but the distribution of grosses is no different from these three countries.

The Gini coefficient for the top 100 in Spain is much lower than the other countries due to the lack of a film like Harry Potter or Intouchables whose grosses are so much greater than those of other films. The highest grossing film in Spain in 2011 was Torrente 4 with \$29.03 million (3.4% of the total accumulated gross), and the top 100 declines steadily with rank. This gives a different distribution to that seen in the UK, France, and Germany – see here and here for examples – which have a large drop off between subgroups of the top 100 grossing films, and between the top 100 films and the others on release.

The inevitable conclusion that follows from this, of course, is that there are a great many movies on release that no one is watching. The lowest grossing film in the UK is Fuk sau che chi sei (Revenge: A Love Story), which is listed as having a total gross 0f \$45 (~£29).

Film policy in the UK is intended to remedy this problem by getting a more diverse range of films onto the cinema screens most people have access to (i.e. multiplexes), but the problem suggested by these results is the that of the squeezed middle. Showing Green Lantern in so many multiplex screens isn’t taking audiences away from thrillers produced in Hong Kong since no one is watching these films anyway. The films that suffer are films like Neds (\$1.58) or Submarine (\$2.37), which have limited opportunities to find an audience. This may explain why the UK film production sector is seen to be less successful in comparison to, say, France or Italy despite the fact that the UK is the largest film market in Europe. Film policy in the UK should be directed at reducing the inequality in the UK exhibition sector to a level comparable to that of the continental countries by boosting the earning power of the middle grossing films.

Table 1 Gini coefficients and total grosses for the total sample (N) and the top 100 grossing films in five European countries in 2011 (\$US millions)

The Lorenz Curves for each country are in Figures 1 through 5, with the total gross shown in black, the top 100 grossing films in blue, and the reference curve (G=0) in red.

Figure 1 Lorenz curve for the total gross of films released in France in 2011

Figure 2 Lorenz curve for the total gross of films released in Germany in 2011

Figure 3 Lorenz curve for the total gross of films released in Italy in 2011

Figure 4 Lorenz curve for the total gross of films released in Spain in 2011

Figure 5 Lorenz curve for the total gross of films released in the UK in 2011

An online module for calculating Gini coefficients and Lorenz curves can be accessed here.