"Highly offensive R-rated films like BORAT and JACKASS: NUMBER 2 had low budgets and large returns this year, but they are exceptions. The big story on R-rated movies is that while production remains nearly the same, market share continues to drop. The more good quality G, PG and PG-13 product being offered, the more the R-rated market suffers. Foreign car makers gained American market share because their cars were seen as better quality. The key to achieving high market share in the motion picture industry is to make quality entertainment that appeals to a broad audience. The real magic happens when people are entertained enough to pay more than once to see the same movie.
"R ratings cut the broadness of the audience even if the quality of the movie is excellent. Many appeal only to small audience segments. This is particularly true of independent art house movies aimed at homosexuals, extreme liberals and other small groups. Many of these movies are made by activists for activists with little regard for profit."
Go to http://www.movieguide.org/index.php?s=articles&id=158