Hollywood is Suffering its Worst-Attended Summer Movie Season in 25 YearsPosted: September 2, 2017
A sobering reality has gripped Hollywood as domestic film industry revenue fell an estimated 16% during the all-important summer season.
The number of tickets sold in the United States and Canada this summer is projected to fall to the lowest level in a quarter-century.
The results have put the squeeze on the nation’s top theater chains, whose stocks have taken a drubbing. AMC Theatres Chief Executive Adam Aron this month called his company’s most recent quarter “simply a bust.”
Such blunt language reflects some worrisome trends. Domestic box-office revenue is expected to total $3.78 billion for the first weekend of May through Labor Day — a key period that generates about 40% of domestic ticket sales — down nearly 16% from the same period last year, according to comScore. That’s an even worse decline than the 10% drop some studio executives predicted before the summer began.
And the number of actual tickets sold this summer paints a bleaker picture, with total admissions likely to clock in at about 425 million, the lowest level since 1992, according to industry estimates.
No one can fully explain why. Studio executives, movie theater operators and analysts cited the usual explanations for the summer slump. There are the obvious reasons: Too many bad movies, including sequels, reboots and aging franchises that no one wanted to see. Some point to rising ticket prices, which hit a record high in the second quarter, according to the National Assn. of Theatre Owners. Then there are long-term challenges, including competition from streaming services such as Netflix and the influence of the movie review site Rotten Tomatoes. How about all of the above?
What is clear: This summer was marred with multiple high-profile films that flopped stateside, including “The Mummy,” “Baywatch,” “The Dark Tower” and “King Arthur: Legend of the Sword.” Sequels in the “Alien,” “Transformers” and “Pirates of the Caribbean” franchises also disappointed. (International ticket sales are helping to ease some of the pain.)
The business is also reckoning with broader, longer-term threats that have kept Americans from flocking to theaters the way they used to. People now have more entertainment options than ever, and cinemas have struggled to keep up, despite efforts to adapt with improved technology and services, industry analysts say. The problem is exacerbated by an unforgiving social media environment in which bad movies are immediately punished by online word of mouth.
Some worry that summer movies have simply lost their place as the top entertainment touchstones American consumers are talking about, as acclaimed shows such as “Game of Thrones” on HBO and “The Handmaid’s Tale” on Hulu dominate the cultural conversation … (read more)
Source: LA Times