Hollywood has more money riding on big sequels in 2002 than any other year in movie history.
Collectively, the studios are spending more than $1 billion on production and marketing for 13 sequels to such hits as "Star Wars," "Lord of the Rings," "Harry Potter," "Men in Black," "Stuart Little," "Austin Powers," "Spy Kids," "Star Trek," "Analyze This" and the next James Bond movie.
Although this year doesn't boast the most sequels--there were 17 in 1994--it's a record for the most high-profile, expensive sequels in a 12-month period, with many costing more than $100 million to produce.
In a volatile, high-stakes business in which it's a struggle to make money back on most movies, let alone turn a profit amid escalating costs, sequels offer a way for studios to hedge their bets.
"They're trying to go for sure things," said Paul Dergarabedian, president of box-office tracking firm Exhibitor Relations Co.
Having a recognizable title often gives studios a leg up, especially in the critical first days of release, though executives know there's no such thing as a slam-dunk in the movie business.
Still, they say having a big sequel or two in their mix of movies relieves at least some of the anxiety inherent in releasing other costly "tent pole" movies.
"The notion of doing a sequel carries a certain comfort level because there's a built-in demand, which helps mitigate the risk associated with the high cost of making and marketing movies," said Warner Bros. President Alan Horn.
Given how high the financial stakes are, Columbia Pictures Chairman Amy Pascal said, "Knowing anything is good."
The "comfort level" studio chiefs refer to has risen to new heights in recent years with windfalls from such blockbuster titles as "Star Wars: Episode I The Phantom Menace" (technically a prequel), "Toy Story 2," "Lost World: Jurassic Park," "Mission: Impossible 2" and "Austin Powers: The Spy Who Shagged Me."
In 2001, half of the top 10 grossing films were sequels: "Rush Hour 2," "Jurassic Park III," "The Mummy Returns," "Hannibal" and "American Pie 2." Add "Dr. Doolittle 2," and that accounts for six out of the top 15.
The new reality--even if short-lived--is that sequels have in recent years been out-grossing their predecessors, laying to rest the conventional wisdom that they typically generate just two-thirds of the original.
