Movie Theaters - US - May 2012
Movie theaters fared well throughout the recession years (2007-09), being one of the few leisure markets to post gains as Americans cut back on discretionary spending. However, after a slight increase in 2010, total revenue declined by 1.2% in 2011 with the fewest tickets sold since 1995 as nearly all age groups went to the movies less frequently.
Declining attendance has been attributed to a variety of reasons, including: film releases that lacked appeal among the critical youth segment of 12-24 year-olds, and studios pushing to reduce theatrical release windows; rising ticket prices; the increasing availability of movies online; and more homes with sophisticated home entertainment systems resulting in audiences waiting until the movies are available to view from the comfort of home.
The movie industry continues to face these challenges in 2012 and Mintel expects the movie business to make just a 2% gain in 2012 based mostly on an incremental ticket price increase of 2-3%.
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