Posts Tagged “home entertainment”

The Wall Street Journal ran an article today that sets a new standard of egregious ignorance in reporting on the movie theater industry.

Using as its jumping-off point a study by Interpret LLC, the article contends that people may be giving up movie-going in favor of staying home. The proof? Interpret asked 1,000 people, in addition to whether they are seeing more or fewr movies in theaters, 'if they had decided not to buy one of seven specific items in the last six months because of "concern over the economy," more respondents chose movie ticket than a range of options, including a car, DVD, videogame system and house.'

Comparing putting off seeing a movie because of money concerns to putting off buying a house or car? How many people were contemplating buying a house or car to begin with? People consider going to a movie weekly - if not more often.

The article retails some conventional wisdom that just doesn't hold up. "Those consumer behaviors are reflected in part at the box office, where any increases in ticket revenue in recent years have been largely attributable to higher ticket prices. Actual attendance has usually declined."

Some facts: Over 16 years, admissions declined five times and rose eleven times. Three of those years were recent. The past two years have been modest increases.

Year

Movie Theater Box Office ($ in millions)

Admissions (in millions)

1992

4,563

1,099.00

1993

4,897

1,182.00

1994

5,184

1,240.00

1995

5,269

1,211.00

1996

5,817

1,319.00

1997

6,216

1,354.00

1998

6,760

1,438.00

1999

7,314

1,440.00

2000

7,468

1,383.00

2001

8,125

1,438.00

2002

9,272

1,599.00

2003

9,165

1,521.00

2004

9,215

1,484.00

2005

8,832

1,376.00

2006

9,138

1,395.00

2007

9,629

1,400.00

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