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Movie theaters are on pace to hit a 16-year low for tickets sold after stay-at-home options gain...

Movie theaters are on pace to hit a 16-year low for tickets sold after stay-at-home options gain favor over 3-D movies and titles that offer little more than a rehash of familiar tales and characters. This year's projected haul of $10.2B is off 3.5% Y/Y, or 4.4% when accounting for higher ticket prices. Movie theater operators RGC, CNK, and MCS have poked out meager short-term returns, while 3-D specialist RLD is off 69% YTD.
Comments (2)
  • wyostocks
    , contributor
    Comments (7641) | Send Message
     
    Couldn't happen to a more deserving bunch of people.
    28 Dec 2011, 03:51 PM Reply Like
  • Andrew Shapiro
    , contributor
    Comments (1866) | Send Message
     
    While it is fact that unit ticket sales are down, I am not so sure that the conclusion of improved stay-at-home options permanently sucking away movie-going is a correct one vs. a regular variable of a bad slate of movies vs. good ones. Q1 2011 was a disaster with a horrible slate and comps vs Avatar. Q2/Q3 was indeed a very strong summer with with popular movies that sold a ton of tickets and now the Q4 slate has disappointed. Certainly high rates of unemployment in studios target market of 18-25 year olds has contributed to attendance declines as well. Again not a secular stay-at-home option changing habits conclusion.

     

    One final illustration of this is that while movie attendance may be off somewhat, DVD unit sales have fallen even more. Again a function of both a bad slate of movies and economic times motivating lower cost rental options.
    28 Dec 2011, 07:14 PM Reply Like
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