The Academy of Motion Picture Arts & Sciences (AMPAS) experienced a strong fiscal 2024, thanks to a surge in The Academy Awards viewership, but its Academy Museum faced a decline in income. Financial statements reveal a complex picture of the Film Academy’s performance, with Oscar revenue showing positive growth, while the Museum’s earnings have slipped after its initial success.
Academy Reaps Benefits from Oscar Revenue Surge
The Academy had a successful year with The Academy Awards, which saw a significant jump in viewership, reaching a post-pandemic high of 21 million viewers. This surge in ratings resulted in an increase in Oscar revenue, which rose to $146.6 million in fiscal 2024, compared to $143.5 million in the previous year. This growth reflects not only a boost in TV licensing deals with ABC and Buena Vista International but also increased sponsorships, screenings, and related events tied to the Oscars.
Oscar revenue, which is a major source of the Film Academy’s income, benefits from both fixed license fees and sales-based royalties. With the rise in TV ratings, advertising sales increased, contributing to the revenue spike. The Academy’s TV deals with Disney’s ABC and Buena Vista run until 2028, ensuring stability in the short term. However, as the Oscars continue to evolve, the Academy will need to address potential shifts in how the event reaches audiences, particularly with the growing demand for streaming options.
While Oscar revenue has risen, there is still uncertainty surrounding the future of The Academy Awards’ income, particularly when the Academy negotiates new deals or explores streaming platforms. With the Oscars not yet available for online streaming, both Disney and AMPAS are likely to push for digital access to tap into younger viewers. How this will impact future revenue remains unclear, especially given the slipping viewership in previous years.
Academy Museum Struggles with Revenue Slippage
In contrast to the positive momentum of the Oscars, the Academy Museum, one of the Academy’s major ventures, has seen its income decline. In fiscal 2024, the Museum earned $15.3 million in “earned revenues,” a drop from $18 million the previous year. This decrease is attributed to slower ticket sales, reduced sponsorships, and a downturn in event revenues. However, membership revenues showed slight growth, increasing from $4.9 million to $5.5 million, which suggests some stability in this area.
The Museum, which had garnered excitement upon its opening, quickly became a hub for screenings and industry events, hosting high-profile fundraisers and attracting A-list guests. Despite these star-studded affairs, the Museum has faced challenges, including complaints about some exhibits and leadership changes. These difficulties led AMPAS to lay off about 2% of its workforce in October 2024, including several VP roles, and to replace the Museum’s chief.
Though the Museum’s fundraising efforts continue to draw attention, the decline in earned revenues indicates that the excitement surrounding its launch may be fading. As a result, the Academy may need to rethink its approach to ensure long-term financial sustainability for this prestigious venue.
Film Academy’s Overall Financial Growth
Despite the slowdown in Museum income, AMPAS’ total revenue saw a significant increase in 2024. The Film Academy reported total revenue of $263 million, up from $225.6 million in 2023. This growth was largely driven by investment returns, with AMPAS’ investment portfolio rising by $66.7 million to a total of $762.5 million. While the Oscar revenue contributed substantially to this increase, the growth in investment income helped balance out the Museum’s revenue challenges.
Looking Forward: The Future of the Oscars and the Academy Museum
The Film Academy remains heavily reliant on the continued success of The Academy Awards, which contribute the lion’s share of revenue. However, with viewership trends shifting and the pressure to adapt to the digital era, the future of Oscar revenue is uncertain. AMPAS faces the challenge of maintaining strong TV ratings and finding new avenues for reaching younger audiences, potentially through streaming.
Meanwhile, the Academy Museum, which quickly gained popularity as a cultural landmark, will need to address its financial challenges. The slipping income and leadership changes highlight the difficulties the Museum is facing in maintaining its initial momentum.
As the Academy moves forward, it will need to navigate these challenges while ensuring the continued success of the Oscars and finding new ways to drive revenue for both the Film Academy and the Museum. With evolving industry trends and audience preferences, AMPAS is at a pivotal moment in its financial strategy, balancing Oscar revenue growth with the uncertain future of the Museum’s income.