Academy Museum Revenues Fall 24% in Second Year of Operation
The Academy Museum of Motion Pictures brought in $18 million in revenue in its second year of operation, a 24% decline from its first year, according to a financial report released on Friday.
The $482 million museum opened in September 2021 to great fanfare, fulfilling a decades-long ambition to create a movie museum in Los Angeles.
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The museum brought in $23.7 million in the fiscal year ending on June 30, 2022, which covered its first nine months of being open to the public. The museum earns money from ticket sales and retail sales, as well as sponsorships and event rentals.
The report indicated that the cost to operate the museum in that initial period was $93.5 million, which fell to $80.6 million in the second year. Museums generally lose money on operations, and rely on endowments and fundraising to break even.
The Academy of Motion Picture Arts and Sciences released its latest annual financial report on Friday, which covers the fiscal year ending on June 30, 2023.
The report shows that revenue from the Academy Awards — by far its biggest source of income — increased 4.6% to $143.5 million.
Overall, the Academy continues to be in the black, with total revenues of $230.1 million exceeding expenses of $216.6 million. The Academy, which is a non-profit organization, maintains net assets of $857 million.
To build the museum, the Academy was able to make use of state-backed low-interest bonds for public infrastructure.
In September, the Academy reached a three-year contract with AFSCME Local 126, which represents more than 170 front-line museum staff.
Shortly after its opening, the Academy Museum endured controversy over lack of representation of the industry’s Jewish founders.
The Academy plans to continue to rectify that criticism with a new exhibit, “Hollywoodland: Jewish Founders and the Making of a Movie Capital,” opening next May.
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