Will This Be The First $5 Billion Summer at The Box Office?

May 11, 2010 – In The News

This summer, industry watchers are expecting the box office to hit or exceed $4 billion with the large influx of sequels and 3-D films due out. "Iron Man 2" has kicked started the summer season with $128 million in sales in the United States. Others however, are still skeptical at the projected results.

Darrell Miller says that the box office numbers will tell a few stories.

"I think it means that Hollywood arguably has a brighter future than many had thought probably a year ago. We've been bellyaching about coming out of the last couple of work strikes, looking at the DVD sales eroding and things of that nature," he says. "Hollywood has been going through the recession like everybody else. So to see a box office boom means things haven't been going as we thought."

Strangely enough, he says, in even this shaky economy, people are paying more to see movies. 3-D films can cost consumers $15 to $20 per ticket, a premium price, Miller says.

"What's really driving these box office numbers is that it's not more attendance, it's higher prices for fewer people. So the rush has been to do more 3-D films because 3-D is now perceived as potential for charging a premium at the box office. And people are willing to pay it," he says.

"If you take away those premiums, the numbers are physically still down. And those significant numbers would go away," he says. "That's an insider's look at those numbers. It's still great. But we're about to start seeing a tremendous amount of 3-D pictures because of that now."

View entire article.