Hollywood Sees Rare Yearly Box Office Decline As Digital Media and Gaming Soars
If Hollywood.com estimates are correct Hollywood box office in 2011 declined by 4.5 percent from 2010, raking in $10.1 billion.
While the drop in box office totals could be attributed to a lack of blockbuster movies (Avatar in 2009 for example) it could also be the fault of Hollywood’s advertising practices which push more expensive 3D movies on customers during a cash strapped economy. In some areas cities charge as much to visit a theater in 3D as they charge to buy the same movie on DVD or Blu-ray just several months later.
One of the most likely culprits comes from digital streaming which has eaten up a growing chunk of the interactive video market. Company’s like Netflix charge a smaller price for movie rights which in turn means less revenue for studios.
In the meantime the gaming industry has also shifted more consumer spending its way, for example Modern Warfare 3 earned $400 million in one day while beating Avatar to the $1 billion gross mark by a full 24 hours. While games are more expensive then movies they also have a longer “shelf life” and have therefore become a favorite of many people who want the most bang for the buck.
At this time drawing any conclusive analysis from current numbers would be a guessing game, however with various blockbuster expected movies due out in 2012 including Men In Black 3 (MIB III), The Amazing Spiderman, The Avengers and others we may soon be able to determine if the 2011 downturn was simply a matter of bad movies released in unison.
Have you forgone movies recently because of their high price of admittance?
