A very likely reason for the love-affair of the studio with the sequel is that the Blockbuster Mentality was in full force. A hit was a smash and a bomb blew up in your face. Ticket prices were up and so were budgets but even with all that taken into account there was an increase in the size of the Blockbuster Film.
1989 was a watershed year when the Blockbuster Mentality finally came to some kind of fruition. In that same year the top 10 all earned $100 million with Parenthood bringing home that exact amount. In 1989 viewership rose 16.4% percent from the year before with Batman, The Little Mermaid and Honey, I Shrunk the Kids being amongst notable original hits and sequels also proved successful with Indiana Jones and the Last Crusade, Lethal Weapon 2 and Back to the Future part II. Having seen most of these films I do believe them for the most part to be very well done unlike much of the trash that lines the top of the box office today. And through the 80s as a whole despite an increase in prices by 48% attendance also rose 24%.
With the youth of America being the power at the box office in the 80s, and the appeal of the cinema being eternal, attendance never really took a hit but every attempt was made by the studios to conquer this audience. There was also an attempt made to conquer the adults who were too busy watching The Cosby Show. Something went terribly right in 1989 because we never had seen so many sequels work in such a big way. The size and scale of major motion pictures also have never looked back. While the 80s were big on big budgets they would really kick into high gear in the latter part of the decade, for example, Who Framed Roger Rabbit costing $70 million to produce and grossing $392 million worldwide. With these kind of success stories the studios were ever more tempted to throw money at their one guarantee and sit to wait for their investment to multiply.
This strategy has ultimately lead to the further deterioration of whatever is left of the studios but it has helped to create true blockbuster because when a film’s a hit now it’s truly a hit meaning it has to make loads and loads of money to go anywhere.
Work Cited: http://www.boxofficemojo.com/yearly/
Note: This is a recapitulation of a paper I wrote in film school. It will be published here in installments. This is part five you can read part one here.