Movie theaters are enjoying an unexpected boost in a down economy, with attendance up 14%, according to
The Los Angeles Times.
Clark is surprised by the surge; he would have thought more people would go to
Redbox for $1 DVD rentals or even to Blockbuster.
But the theaters are thriving by picking up discretionary income that might have otherwise gone to vacations and home improvements.
In addition, consumers view the movies as a simple and affordable pleasure versus a big night out on the town. A flick at your local movie house is certainly cheaper than live entertainment!
One of the real winners here are the stockholders in movie theater conglomerates. Some stocks have as much as doubled over the past year.
At the same time, Blockbuster's sales have dropped 20% in the first three months of the year. They've also had to cut inventory by 20%. Could that be something of a self-fulfilling prophecy, Clark wonders? Perhaps people can't find the movie they want and simply decide not to rent anything at all.