Hang wringing, finger pointing and overall assessment of blame is the hottest topic in Hollywood this holiday season. While every week seems to bring a new blockbuster with plenty of buzz, marketing and commercials trumpeting its release into theaters, customers weren't convinced to break down the doors to the local cineplex. With the lowest number of tickets sold since 1995, Hollywood is searching for answers in a complex multi-media world. The total number of tickets sold domestically declined 4.8% in 2011 to 1.275 Billion. Even with more 3D and IMAX premiums raising prices of many tickets, total revenue also was down by 4% to $10.15 Billion.
What drove this decline?
If you have the answer, Hollywood wants to hear it.
Some are writing off the decline to an abnormally good 2010, which benefited from the record breaking performance of James Cameron's Avatar. However, a closer look shows some disturbing trends.
1) For the first time since 2005, no animated film crossed the $200 million threshold domestically. These family films have been a source of massive income for the distributors, which then drive DVD sales of the movies, as well as other products such as toys, TV specials, comics and marketing tie-ins with fast food places and more.
2) Several franchises saw sequels under performing in North America compared to their previous incarnations including Alvin and the Chipmunks: Chipwrecked, Pirates of the Caribbean: On Stranger Tides, The Hangover Part II, Kung Fu Panda 2 and Cars 2.
3) 3D Movies, once thought to be the salvation of Hollywood which would drive more ticket sales, have been under attack for lack of being worth it, poor quality of presentation, and being a gimmick serving the purpose of higher prices instead of artist merit.
4) IMAX movies, attempting to make a move into the local cineplex with a smaller screen size that still exceeds the normal movie screen, are being derided for providing a product not truly IMAX and ridiculed as being MinIMAX.
5) With bigger and better home theaters, and the trip to the cineplex becoming more and more unpleasant, people are waiting to see the movie on DVD or at home via cable's On Demand delivery. And, the distributors are picking up on it by slashing the window (amount of time between when a movie leaves theaters and becomes available for home entertainment). It has started a war with cineplex owners, but it's an inevitable response to reality and the marketplace.
Will this decline continue into 2012? Plenty of Hollywood executives, crewmembers directors, producers, writers and actors sure hope not.
Some are writing off the decline to an abnormally good 2010, which benefited from the record breaking performance of James Cameron's Avatar. However, a closer look shows some disturbing trends.
1) For the first time since 2005, no animated film crossed the $200 million threshold domestically. These family films have been a source of massive income for the distributors, which then drive DVD sales of the movies, as well as other products such as toys, TV specials, comics and marketing tie-ins with fast food places and more.
2) Several franchises saw sequels under performing in North America compared to their previous incarnations including Alvin and the Chipmunks: Chipwrecked, Pirates of the Caribbean: On Stranger Tides, The Hangover Part II, Kung Fu Panda 2 and Cars 2.
3) 3D Movies, once thought to be the salvation of Hollywood which would drive more ticket sales, have been under attack for lack of being worth it, poor quality of presentation, and being a gimmick serving the purpose of higher prices instead of artist merit.
4) IMAX movies, attempting to make a move into the local cineplex with a smaller screen size that still exceeds the normal movie screen, are being derided for providing a product not truly IMAX and ridiculed as being MinIMAX.
5) With bigger and better home theaters, and the trip to the cineplex becoming more and more unpleasant, people are waiting to see the movie on DVD or at home via cable's On Demand delivery. And, the distributors are picking up on it by slashing the window (amount of time between when a movie leaves theaters and becomes available for home entertainment). It has started a war with cineplex owners, but it's an inevitable response to reality and the marketplace.
Will this decline continue into 2012? Plenty of Hollywood executives, crewmembers directors, producers, writers and actors sure hope not.
