Movies and the Fear Factor

Ticket Sales
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The outlook for theaters during this latest economic downturn seems brighter than Time Square on a Saturday night because few movie fans seem to be taking a break from one of the nation's favorite pastimes.

Nationally, summer ticket sales are strong and virtually on par with those from 2007. After the weekend of June 13, the 2008 year-to-date box office was $4.09 billion, compared with the record-breaking $4.1 billion box office for the same period last year.

Arizona box-office numbers were not available, but several theaters reported brisk ticket sales, with some predicting 2008 box-office numbers could surpass those from 2007.
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A study done by the National Association of Theatre Owners in Washington indicates that box-office numbers increased during five of seven economic downturns since 1965, suggesting that movie attendance rarely decreases during a slowing economy.
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In comparison to other forms of entertainment, a trip to the movies is more affordable than tickets to a baseball game or concert, he added.
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The 12 theaters owned by the company in California and Arizona are doing so well that the company is planning to open six new ones in Arizona within the next three years. Most will be in communities without local theaters.
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AMC spokeswoman Chris Hamele said the company re-evaluates its prices twice a year and that multiple factors, including high corn prices, prompted it to increase admission 25 cents a ticket in its Arizona theaters.

The adult general admission price at AMC's Arizona Center theater is $9.75.

Harkins Theatres in the Phoenix area last increased their prices by 50 cents in November 2006, making the general admission $9.50.

Despite good business, owners are paying attention to rising gas, energy and food prices.

Average gas prices in metro Phoenix rose from about $2.99 a gallon a year ago to about $4.14, which increases supply costs for theaters. Energy bills tend to be higher for theaters during the summer.

Additionally, corn prices have climbed from about $6 a bushel in late May to $7.46 as of Wednesday, an increase that could boost the price of popcorn - one of the most popular theater staples - which now sells for about $3.50 for a small container.
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Harkins' Bowers said his company is feeling pressure from increased corn and gas prices and the minimum wage-increase that kicked in Jan. 1.

Bowers said Harkins made a conscious choice to absorb the cost increases itself in view of "what the economy was facing."

But not all theaters can absorb higher costs.

Chandler Cinemas recently increased its admission price from $1 to $2 to keep up with summer energy bills, said Andrea Beesley-Brown, the operations and booking director for the discount theater.

The ticket increase hasn't negatively affected attendance, Beesley-Brown said.

The other reason, besides an inexpensive family night out, for movie ticket sales to continue to increase is that we need an escape from 'reality'. Just a little break that includes getting out of the house. And Hollywood has not disappointed this year with its summer hits of Indiana Jones, Wall*E, Wanted, and, of course, last night's opening of The Dark Knight that has, by all industry measures, broke ticket sales across this great Land.




I am betting many of you are at the movies as I type...




Of course, I am all about the highly anticipated release July 25, 2008 of:




David Duchovny - X Files 2



See You At The Movies!