Sunday, January 2, 2011

What has changed in the Movie industry in the last 10 years? Ticket sales are LESS but revenue MORE. How does that happen? (see the Top movies from 2000--really? That long ago?)

I posted this graphic (left) just the other day.  Looking at it closer, I was curious about the "entertainment" category at the bottom.  In 2000, U.S. box office revenue was $7.7 billion on ticket sales of 1.4 billion.  So the average ticket price was $5.50. Adjusting for inflation, that would be the same as $6.99 today. In 2010 the box office revenue was $10.3 billion on ticket sales of 1.3 billion for an average ticket price of $7.92.  Movie ticket prices have increased faster than the general rate of inflation as measured by the CPI).

A couple of observations...I found it curious that gross ticket sales were less THIS year than in 2000. We were in the very early stages of a recession then, but still in the midst of one in 2010 so that could account for some of it.  However, U.S population most assuredly increased during the decade so that should have compensated some. The only other explanation for a higher average ticket price over the course of the decade is the increase in the number of 3-D movies that sell at a premium over 2-D movies. How about you? Can you think of any alternative explanation I may have missed?  Below are the Top 15 Movies in 2000.  Seems like yesterday!!

1  The Grinch
2  Cast Away
3  Mission: Impossible
4  Gladiator
5  What Women Want
6  The Perfect Storm
7  Meet the Parents
8  X-Men
9  Scary Movie
10  What Lies Beneath
11  Dinosaur
12  Crouching Tiger
13  Erin Brockovich
14  Charlie's Angels
15  Traffic
Source: HERE
View My Stats