Monday, January 4, 2010
The Wall Street Journal - Last year was the first since 2002 that U.S. consumers spent more money buying movie tickets than buying movies to watch at home, underscoring the changing economics of Hollywood.
According to new data from Adams Media Research, Americans spent $9.87 billion at the box office in 2009, 10% more than in 2008, according to a report Adams plans to release Tuesday. At the same time, sales in the U.S. of feature films on DVD, long a cornerstone of movie studios' business models, plunged 13% to $8.73 billion, including Blu-ray high-definition discs. (Other companies that track box-office receipts include Canada in their North American figures, adding about 7% to the total and pushing the year's gross above $10 billion.)
The figures indicate that studios will likely have to continue looking for ways to survive in a marketplace where they can't count on hefty home-entertainment revenue to offset giant production costs. Those costs often more than eat up the studios' half of the box-office receipts, which are split with theaters.
The ongoing decline in home-entertainment revenue has already fundamentally altered the way studios do business, forcing them to place big financial bets on hoped-for mass-market blockbusters at the expense of features that cost less to make but that also have smaller earnings potential.
- Existing-Home Sales Plunge
- Two Big Printers Expected to Merge
- Demand for Macs, iPhones Fuels Apple
- One Third U.S. is Now Below the Poverty Line
- WSJ Top News Friday-Sat, Jan. 22-23, 2010
- Time to Sell Health-Care Stocks?
- Falling Beer Sales Have Brewery Mergers Over a Bar...
- Starbucks Growth Revives, Perked by Via
- New York Times to Charge for Web
- Apple Sees New Money in Old Media
- WSJ Top News Tuesday, Jan 19
- JPMorgan Chase Earns $11.7 Billion
- Taxing the Banks For the Bailout
- WSJ News Jan. 16-17
- A Window Opens on Pay for Bosses
- Shares Edge Higher as Investors Await Earnings
- Wall Street, the Depression and the Lords of Finan...
- The Fox News Architect
- A Fox Chief at the Pinnacle of Media and Politics
- WSJ Top News - Monday, Jan 11, 2010
- WSJ Top News - Fri-Saturday Jan 8-9 2010
- If Fed Missed This Bubble, Will It See a New One?
- WSJ Top News - Wednesday 1-6-10
- Could Apple's Tablet be a Savior for Print Publica...
- Cinema Surpassed DVD Sales in 2009
- ▼ January (25)
- ► 2009 (257)
- ► 2008 (45)