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View Full Version : Movie box office seen rising after slack summer

mangolass
07-25-2005, 06:22 PM
Film industry insiders are optimistic that movie ticket sales will rebound in the second half of the year after a summer slump as more and better-quality films hit theaters.

Regal Entertainment Group (RGC.N: Quote (http://www.investor.reuters.com/FullQuote.aspx?ticker=RGC.N&target=%2fstocks%2fquickinfo%2ffullquote), Profile (http://www.investor.reuters.com/CompanyOverview.aspx?ticker=RGC.N), Research (http://www.investor.reuters.com/StockReports.aspx?ticker=RGC.N)) CEO Mike Campbell told Reuters in a recent interview that exhibitors were counting on a strong slate of fourth-quarter films to drive box office revenue past last year's totals. Exhibitors were expecting the year-end box office charge to be led by Universal's "King Kong," from "Lord of the Rings" director Peter Jackson; Warner Bros' "Harry Potter and the Goblet of Fire"; and Walt Disney Co's (DIS.N: Quote (http://www.investor.reuters.com/FullQuote.aspx?ticker=DIS.N&target=%2fstocks%2fquickinfo%2ffullquote), Profile (http://www.investor.reuters.com/CompanyOverview.aspx?ticker=DIS.N), Research (http://www.investor.reuters.com/StockReports.aspx?ticker=DIS.N)) "The Chronicles of Narnia: The Lion, the Witch and the Wardrobe."

Campbell, head of the No. 1 U.S. movie theater chain, said that even without a breakout hit, ticket revenue was likely to rise because studios are releasing 15 to 20 more films during the year-end period.

Paul Dergarabedian, president of Exhibitor Relations Co. Inc., a box office tracking company, agreed: "It looks very, very good for the end of the year but again we have a lot of ground to make up."

The industry emerged this month from a 19-week box office slump that saw revenue decline by more than 7 percent and attendance fall by 10 percent below last year's figures, according to Exhibitor Relations data.


Box office revenue in the weekend of July 8 ticked up slightly over last year's figures for the opening of Twentieth Century Fox's "Fantastic Four". The following weekend revenue rose 7.5 percent from the previous year on the debut of Warner Bros.' "Charlie and the Chocolate Factory," Dergarabedian said.

Campbell said he believed the attendance downturn was cyclical and tied to consumers' lack of interest in this year's crop of films.

On the revenue side, Campbell pointed out that exhibitors have had a half dozen fewer films to screen so far this year, and no independent hits like last year's "The Passion of the Christ," which grossed $371 million domestically before closing July 29, 2004, and "Fahrenheit 9/11," which took in $119 million domestically before closing Oct. 28, 2004.

But sales fell off last year in the fourth quarter with no "tent pole" films to drive attendance, Dergarabedian said.

"We were kind of ending with a whimper last year," he said.

Pixar Animation Studios Inc's (PIXR.O: Quote (http://www.investor.reuters.com/FullQuote.aspx?ticker=PIXR.O&target=%2fstocks%2fquickinfo%2ffullquote), Profile (http://www.investor.reuters.com/CompanyOverview.aspx?ticker=PIXR.O), Research (http://www.investor.reuters.com/StockReports.aspx?ticker=PIXR.O)) "The Incredibles" dominated the 2004 year-end box office with a very successful $70-million opening weekend, followed by DreamWorks Animation SKG's (DWA.N: Quote (http://www.investor.reuters.com/FullQuote.aspx?ticker=DWA.N&target=%2fstocks%2fquickinfo%2ffullquote), Profile (http://www.investor.reuters.com/CompanyOverview.aspx?ticker=DWA.N), Research (http://www.investor.reuters.com/StockReports.aspx?ticker=DWA.N)) "Shark Tale" with a $48-million debut.

Dergarabedian said in comparison, "Potter," "King Kong" and "Narnia" "are looking like huge movies at this point."
huydoan.com
07-25-2005, 09:21 PM
Campbell said he believed the attendance downturn was cyclical and tied to consumers' lack of interest in this year's crop of films.


in other words, there's no movie worth paying $10 to see. I wish hollywood would realize this and 1) stop making so many terrible movies that cost over $100 million to produce, and 2) reduce the ticket prices.

Bringing your wife and two kids to one movie costs $40 not including food and drinks. Remember when matinee prices included weekends? Now it cost full price, even on a saturday afternoon. Well someone has to pay for the $20 million actor salary and $60 million in gratiutous CG and $50 million in blatant advertising.
mangolass
07-25-2005, 11:07 PM
Nowdays it's not about whether you want to see a film ~ you can always do that on DVD ~ but more about whether you want to go to the movies. When people are out on dates they want to go to a movie. When parents need time to shop and want to put their kids somewhere they take them to a movie. But it's pretty rare that people would go to a movie in the theater just for the sake of seeing the movie ~ it would have to be a big event like a Pixar film to be worth doing that.

LT
Darktwin
07-25-2005, 11:35 PM
I agree with huydoan for the most part. Movie tickets are rising and the quality of films from a general perspective are pretty stagnant. years ago when movie prices were reasonable , I'd view a film during matinee just to view a film. But not things are extremely different, I now don't consider viewing a film on the big screen unless it strikes my interest, and thats not saying much from the films Hollywood is producing today. Films I pass up on in the threatres I either wait for the dollar theatre, (which isn't a dollar anymore, the its still called that) or for rent. I understand that the film industry is a lucrative business, but if prices of tickets rise, shouldn't the general quality of films also,(I know I'm speaking subjectively).

Nowdays it's not about whether you want to see a film ~ you can always do that on DVD ~ but more about whether you want to go to the movies. When people are out on dates they want to go to a movie. When parents need time to shop and want to put their kids somewhere they take them to a movie. But it's pretty rare that people would go to a movie in the theater just for the sake of seeing the movie ~ it would have to be a big event like a Pixar film to be worth doing that.

Good points, the theatre for most is a means to do something different to break the mold of their repetitive lifestyles. So the the goal of everyone first is to be entertained regardless if the story is good or not.
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