Do people spend more on movies when there is a recession? If they do, why is it so?
The New York Times had this interesting observation about the box office collections last week:
Overall the Top 10 films took in $134.4 million, according to Screenline. That is about 10 percent higher than the $122 million in ticket sales for the top 10 films during the equivalent weekend last year, when Evan Almighty held the top spot.
One cannot base observations from one weekend alone, of course. Perhaps last year, the weekend was rained out in many places, or there were no good movies (not that that has stopped anyone on a summer weekend). But even with assuming all this, a 10% increase this year seems to be rather high, especially if we are in a recession.
Why would people spend more on movies during a recession?
– Is it that movie watching is a cheaper option than other forms of entertainment? Cheaper than going to amusement parks, or going to the opera or a concert? Or going to the mall?
– Do gas prices come into the picture? Do people prefer going to a nearby theater rather than, for instance, go camping or fishing (inexpensive but far), or spending a day at the beach?
What do you think the reason is?
Does it also mean that we will see more movies this year that are geared towards a family audience?