Despite the innovations in home entertainment during the past 50 years such as video cassettes, DVDs and DVRs, Americans still flock to the movies almost as often (4-5 times a year) as they did in 1965. Even with this trend, box office admissions have declined ~2.6% annually since 2002. North American ticket sales have gone down almost 15% in just a decade, while box office revenue has increased. How is this possible?
In the first installment of our Executive Insights “Spotlight on Media & Entertainment" series – which features our insights in a new impactful visual format – we focus on box office trends. L.E.K.’s Dan Schechter, Gil Moran and Francesco Di Ianni explore the current trends in admissions, movie production, movie ticket prices and whether the 3D movie growth may be coming to an end.
Find out what’s next for the movie business. Though it’s difficult to forecast outcomes with certainty, one thing is clear: while studios can prosper with more special effects, exhibitors will need new ideas to bring the masses to the movies.