Despite the seeming growth in investment in the movie industry and the billion-dollar summer releases such as the “The Dark Knight Rises” and the “Avengers”, it is now official that the Movie tickets are down by a mile.
According to the report by the Motion Picture Association of America, the movie attendance numbers reduced from 1.36 million the previous year to 1.34 million last year, despite an increase in the box-office sales (due to increase ticket prices). This represents about 11% fall in the number of tickets sold between 2004 and 2013 as the revenue experienced an increase of 17%.
As you can see, the slump in the number of tickets sold did not start last year. In fact, the decline has been going on in the last decade. It is clear that the decline started in the early 2000’s where the first drop of tickets sold was witnessed.
According to analysts, this slide is caused by the increasing home-entertainment options such as video games, television, streamed movies (YouTube and other online channels), mobile apps, social media (people spend a considerable amount of their time on social media at the expense of engaging in social activities) video games and more television channels, among other things.
If this is anything to go by, then we are likely to experience a further decline of movie tickets sold in the coming years. Another factor that could be responsible for the decline is the increasing ticket prices and the availability of cheaper alternatives to watching movies. For instance, the average movie ticket in the United States was around $7.96 in 2012 and increased to $8.13 in the year 2013.
Now, local movie theatres are trying to reduce their ticket prices in a bid to increase the demand. However, we are not sure whether this will yield the desired results because of the factors we have already stated above.