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Thursday, 18 August 2011 - Box office heading toward record despite economy |
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Credit: Reuters/Benoit Tessier By Lisa Richwine LOS ANGELES | Wed Aug 17, 2011 3:46pm EDT LOS ANGELES (Reuters) - A popular boy wizard, comic-book heroes and some foul-mouthed women are leading Hollywood toward a record-breaking summer despite the sour economy and high unemployment resulting in tightened consumer spending. Underscoring the notion that movies are recession-proof, U.S. and Canadian ticket sales are expected to finish nearly 5 percent higher than a year ago thanks to the "Harry Potter" finale and other big-budget sequels plus raunchy adult comedies such as "Bridesmaids." Summer ticket sales in the domestic (U.S. and Canadian) market through last weekend stood at an estimated $3.8 billion. Attendance was up 2.8 percent, though that was compared with last year's 13-year low, according to figures from tracking firm Hollywood.com. Premium charges for 3D films and slightly higher average ticket prices helped raise revenue. "If we keep at this pace, we should wind up with $4.5 billion," the highest summer total ever, said Paul Dergarabedian, box office analyst with Hollywood.com. The summer film season -- usually measured from early May through Labor Day weekend in September -- represents the most lucrative time of the year for studios, providing as much as 40 percent of annual box-office dollars. Still, year-to-date box office revenue is down 4 percent from 2010 while attendance has shrunk 5 percent after weak winter and spring ticket sales. Studios need a strong holiday season to regain lost ground at a time when the U.S. economy is sputtering. "Overall I think people are feeling good" about the summer results, said Rory Bruer, president of worldwide distribution for Columbia Pictures, a unit of Sony Corp that rang up big sales with family film "The Smurfs." HOLLYWOOD BUCKS THE ECONOMY The strong summer box office belies recent data on consumer spending from the Bureau of Economic Analysis, which showed that Americans spent less and saved more money in June, just as the summer season was moving into full swing. It also goes against concerns among economists about the possibility of a double-dip recession brought on by high unemployment and anemic economic growth. But moviegoing, which is one of the cheaper entertainment options for consumers, usually holds up in weak economies, industry players said. For instance, in summer 2008, the most recent comparable period to this summer in terms of the macro-economy, domestic box-office sales gained 0.5 percent year-over-year, though that was largely due to ticket price increases. Attendance actually fell 3.7 percent that summer. Box-office success is tied more to the quality of the films than economic trends, Dergarabedian said. "Good movies are recession-proof," he said. Chris Aronson, senior vice president for domestic distribution at 20th Century Fox, added that "lower-quality 3D films could be under pressure as audiences become more discerning." Overall box-office totals for 2011 "will probably get to a position where we are level with last year," he said. WINNERS AND LOSERS This summer's standout performers thus far include "Harry Potter and the Deathly Hallows - Part 2," which broke records worldwide and was among three movies to sell more than $1 billion globally. The others were the third "Transformers" and fourth "Pirates of the Caribbean." "The one consistent area of success is still in the big franchise and in the big sequel," said Rob Moore, vice chairman of Paramount Pictures, a unit of Viacom Inc. Foul-mouthed women scored big with better-than-expected sales for "Bridesmaids" and "Bad Teacher." Another adult comedy, "The Hangover 2," also was a hit. Superheroes abounded on screens -- to mixed results. "Captain America: The First Avenger" and "Thor" performed well while "The Green Lantern" fizzled. Four of the five highest-grossing summer 2011 films were offered in 3D, as were several other summer flicks. But filmgoers often decided to live with two dimensions, sparking a debate in the industry over whether the appetite for 3D movies had petered out. "Avatar" director James Cameron recently urged Hollywood to make sure 3D movies provided a quality experience to justify the higher price. "This is a good moment for Hollywood to acknowledge that they have to try harder to maintain the idea that 3D is a premium experience. We can't take cheap routes," Cameron told Reuters in an interview. Walt Disney Co's revered Pixar animation unit for the first time stumbled with critics who panned "Cars 2." The film has proven resilient with audiences, however, surpassing the original's box-office tally with more than $476 million in gross sales worldwide. But the strong performance of sequels this summer has a downside. "There really weren't any new franchises created ... This summer may wind up with record gross (box office), but I don't know if enough seeds were planted for the future," said Brandon Gray, president of industry tracking firm boxofficemojo.com. From that perspective, the rest of the year appears ominous for studios, with sequels to "Twilight," "Mission Impossible," "Happy Feet" and "Alvin and the Chipmunks" all set for release. (Reporting by Lisa Richwine; Editing by Bob Tourtellotte, Peter Lauria and Matthew Lewis) Entertainment Fashion Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints Entertainment News From the Wrap Mötley Crüe Booker Sued in Buenos Aires Concert Dispute 7:33pm EDT Promoter claims Crüe booker scrüed him out of a performance by Vince Neil and the gang; he's seeking $2 million Accused Inside Trader Hits Back at SEC Over Marvel Stock Purchases 7:26pm EDT Toby Scammell says he didn't get tips from his Disney-employee girlfriend about the media giant's $4 billion deal for the comic book company two years ago Russell Armstrong's Lawyer Says He Spent Savings to Make Wife Famous on 'Housewives' 7:35pm EDT "The expenses were getting higher and higher and he was unable to cover it," lawyer says Howard Schultz: Obama, Congress Should Not Vacation During a Crisis 7:34pm EDT In an exclusive interview, the Starbucks CEO says he has been “stunned” by the response to his call for a boycott on political donations   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) Dahc wrote: Of course! Because this is where our main focus is: entertainment, good times, fantasy, pretense. Not survival. Aug 17, 2011 3:59pm EDT  --  Report as abuse See All Comments » Add Your Comment Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Mobile Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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