Movies And The Economy

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Movies And The Economy: Courting Adults In A Time Of Declining Film Attendance 

There is a dilemma facing American theaters today.  In 2002 at it’s peak of admission of 1.57 billion movie goers to 15% less in the last decade.  American theaters are in the “recessionary era of shrinking paychecks” and dull Hollywood fare.  Think of what theaters have to compete with today.  With technology making it easier to watch movies from the comfort of your home to cable companies getting movies to you sooner and sooner, theaters are having trouble competing. 

In 1948, 67% of Americans went to the movies at least once a week, today that number is less then 10%.  Movie going is one of the cheapest forms of entertainment, cheaper then lets say sporting events or concerts.   

“If movies are to stay in the black,” they need to persuade adults to come.  How do they do that you ask?  Well, food is an important factor to the profit making.  Most theaters make up the difference by rising popcorn and pop prices.  If you think about it theaters are more in the snack business then they are in the movie business.  

Video on demand is threatening the “livelihood” of theaters.  The possibility is that, film lovers that like to stay home no matter how attractive the movie is will spend a few dollars more and rent it on demand, if it is offered at the same time. 
The days of hundreds of people amercing themselves all at once in a theater is vanishing.  Something needs to draw people back to the movies.  It needs to be a “special experience.”  In 2011 there were a lot of remakes and sequels, there has been little “originality and inspiration” to bring people to the big screen.  Something needs to happen to bring people back to the theaters.  The question is, what?