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Jun 11, 2009 -- Movie attendance sees unexpected boost in recession

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.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Profit Margin
    I wonder what the profit margin is for a large drink and popcorn at the movies? People scream when Exxon makes a 7% profit! I had a business prof in college who used to say the largest profit margin was a fast food drink, I bet he forgot the movie theater items!
  • BTW
    To get into a bar to hear live music in my city, Austin, is $8-10. No drink minimum. I really don't see how canned entertainment at the movies is any better than live.

    And BTW for the person who says people can't afford $20?? What survey did you use on that?

    Are you kidding me?

    $20

    wow
  • A flick is cheaper than live entertainment
    Zoiks! You are scaring me. Symphony and opera tickets don't cost that much. You can get away with less than $20 a ticket in my city, Austin.

    Even in Atlanta the cheap seats are $21.

    http://www.atlantasymphony.org/Calendar/EventDetail.aspx?event=Magnificent-Mozart
  • I have worked at a movie theater for about a month and I work in concession. They have been sending us home early because "we are not busy enough". From my observations, movie sales look to be up but I think concessions are decreasing. I mean it's understandable it's $20 for popcorn and two drinks. People just can't afford it.
  • I have been at work everyday for two weeks, working till midnight, and I am on a salary. The people who still have jobs are now doing the work of two or three people. So when I want to go out, I go to the movies, because it is easy and relatively cheap for the experience. I just wish they had more Rocky Horror type movies in our future :(

    My fellow commenter is right about good movies being out...it's about time.
  • Wait!
    Methinks I'll just wait and watch a movie after its been out for awhile, Cheaper, Still teaching Grand daughters the stars in the sky and how to navigate with a map & compass so they will know were they are and how to get to were they want to be. Their Math is getting better for the middle one proved her teacher wrong in school with horror's Mathematics. The old saying " If it cannot be proven in a mathematical formula then it is only a theory" rings true always. The rest we have to take on faith. Think about it a little and stretch the ole gray matter some.
  • Movies
    People are going to movies now because there are actually movies to go and see! There was about a 1.5yr drought in movies...
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