This weekend, my family embarked on a double movie marathon, immersing ourselves in the exciting world of "Furiosa: A Mad Max Saga" (truly a captivating tale!) and the charming antics of "The Garfield Movie" (precisely as advertised). However, amidst our cinematic escapades, it became apparent that many, many Americans chose to steer clear of the big screen altogether.
The recent holiday weekend revealed a startling trend: it marked the worst Memorial Day showing Hollywood has witnessed in decades, with ticket sales plummeting by a staggering 40% compared to the previous year. Hollywood is notoriously adept at conjuring up explanations for box office failures — or, in this instance, a string of failures. Last year's actor and writer strikes disrupted movie production, marketing movies has become increasingly challenging in 2024, perhaps the movies themselves lacked appeal, streaming services have trained people to cozy up at home, and so on.
Yet, the most glaring explanation remains the one that Hollywood and its ardent fans are least inclined to voice aloud: People are no longer flocking to cinemas as they once did. It's a simple, yet profound truth that cannot be ignored.
The statistics speak volumes: in 2002, Americans flocked to cinemas, averaging 5.2 visits per year. But by 2019, that number had plummeted to a mere 3.5 times. The pandemic dealt a devastating blow to the box office, and even post-COVID, things remain far from rosy. Analyst and investor Matthew Ball reveals that the average moviegoer only ventured out 2.3 times in 2023 — a year when the industry was boasting about a revival spearheaded by blockbusters like "Barbie" and "Oppenheimer."
In response to this decline, Hollywood has resorted to hiking ticket prices — estimated to have soared by 20% between 2019 and 2022 — and pushing moviegoers towards pricier cinemas like Imax screens. (I myself shelled out $44.76 for two tickets to "Furiosa" at my local Alamo Drafthouse over the weekend, but I'm not complaining — I love that chain!)
Sony movie boss Tom Rothman argues that they should be doing the opposite — cutting prices. "It's basic consumer economics: just lower the prices and you'll sell more," he said in a recent interview that's causing quite a stir in the industry. And it makes sense to me. People still seem eager to catch movies on special occasions, as evidenced by the success of films like "Barbie" and "Oppenheimer."
But there's no escaping the internet and the fierce competition it brings to everything, movies included. In 2002, only about 7% of Americans had broadband internet at home. Now, that figure stands at a whopping 80%. Factor in the smartphone — which you're probably reading this on — and the endless free content available on it, and it's clear that the movie industry is fighting a losing battle against the gravitational pull of the internet.
I don't foresee movies or movie theaters disappearing anytime soon. (And don't blame me — I've been to at least six cinemas this year!) But it's high time we stopped being surprised when moviegoers, year after year, opt for other forms of entertainment.
