Like others have said, I'm sure the differences in time make a big impact on the length of the credits. Also, a production as huge as LoTR required a vast cast and crew. I think it's great that they made sure everyone was properly recognized for their contribution to the films.
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Originally posted by Sparhawk
As I recall, those older movies had a long "intro credits" reel, where you sit there going "Start the fuckin movie already!"
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There's that too. I would much rather have ten minutes of credits at the end of a film than ten minutes of credits at the beginning.
Altogether, I think that they were completely justified in having the credits as long as they are. I also loved how they had the hand drawn art for the main cast at the beginning of the credits. It's definently worth it to at least sit through those.