News

This Year's BO Boom Replaces Last Year's Gloom

By Robert Marich
   July 2, 2015-A year ago, gloom-and-doom was heaped on cinema because of poor summer box office. This year, box office revenue rose 6.6% on a year-to-date basis to $5.60 billion according to BoxOfficeMojo.
   In today's medicore economy, a 6.6% hike in revenue is stellar. Cinema shows it is resilient and continues to be “product driven”—meaning fluctuations are in large part based on the audience-grabbing appeal of movies.
    Corporate credit evaluation service Fitch Ratings Report predicts full-year boxoffice will easily surpass the $10.4 billion of
critic reviews were mixed, but audiences were unanimous pushing Jurassic World domestic box office to $520 million and growing

last year, which was down 5.2% because of a particularly weak summer. The peak summer season alone was off an alarming 21% last year--which of course means the other off-peak periods of 2014 were actually fairly strong since the full-year was not as bad.
   This summer is booming with Jurassic World, Avengers: Age of Ultron, the over-performing San Andreas and sleeper hit Perfect Pitch 2. The boom looks to continue with just-released Disney/Pixar Animation’s Inside Out, animated Pixels, a new Mission: Impossible and a reboot of Fantastic Four.
   “The large U.S. exhibitors continue to ramp up investment in premium offerings and seating, which we believe should somewhat offset the long-term challenges,” says a Fitch press release. Cinema faces stiff competition from video-on-demand, which is shrinking time gap for the cinema-to-TV release window.
   On the product-driven nature of moviegoing, the third edition of Marketing To Moviegoers says, “Although competition exists for prime premiere dates, distribution executives know that consumer consumption for films is elastic. There’s always hope of getting a big crowd on any weekend. A moviegoer may go to multiple movies in a month, depending on the quality of releases and the moviegoer’s personal schedule. That’s a far cry from other businesses where, for example, a consumer buys just one tube of toothpaste every month or an automobile every three years, regardless of what’s offered in the marketplace.”
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http://www.businesswire.com/news/home/20150701006406/en#.VZXwG0Zjf6Y
http://www.marketingmovies.net/news/putting-summer-bo-funk-in-perspective/
http://www.marketingmovies.net/chapters/chapter-8-distribution-to-theaters/