The Oscars are a $2 billion economic engine

The Oscars are a $2 billion economic engine that powers everything from local businesses to the global fashion industry. It's the most profitable non sporting event on American television. Let's break it down right now. ABC pays $70 to $100 million dollars a year to the Academy of Motion Picture Arts and Sciences just to air the show. My former employer, Disney, owns both ABC and Hulu, which also streamed the ceremony this year in addition to the main broadcast. Advertisers like Rolex and Burger King then pay Disney up to $2.3 million for a single 30 second ad spot. For context, a Super Bowl commercial for the same 30 seconds costs around $7 to $8 million dollars. But the Oscars are still the most expensive and prestigious ad buy outside of sports. Between the ceremony and the red carpet pre show, Disney pulls in a total of $147 million in total ad revenue. But things are changing. This year's ceremony is one of the last on ABC. In 3 years, YouTube will take over as the global broadcaster through 2033. The era of network TV owning Hollywood's biggest night is coming to an end. Now let's talk about the red carpet. Before the mid 90s, celebrities often wore their own clothes and European fashion houses actually considered dressing celebrities as beneath them. That all changed in 1997 when Nicole Kidman wore a Galiano for Dior runway look. She got massive exposure and that single moment unlocked an entire economy, and today celebrities are paid anywhere between 150k to half a million to wear specific looks. Winning an Oscar also transforms a film's revenue. A nomination alone can add $40 million dollars to the box office, and winning adds $50 to $100 million dollars more. That's why studios spend $10 to $30 million dollars in award campaigns. That's like private screenings for Academy voters, lavish industry dinners, and press tours. Speaking of winning, after taking home Best Actor last night, Michael B. Jordan celebrated at an in N out. I generally wouldn't be surprised if in N out surpassed their annual revenue target based on that one moment alone. The Oscars move billions of dollars in a single night. I love breaking down the business of things, so follow for more!