Here's a riddle for you: Annual movie ticket sales have been on the decline since 2002, but the industry's gross annual revenue has doubled over the same period. How?
It’s a common refrain in Hollywood that the movie business is on the decline, both in terms of ticket sales and due to televisions emergence as a source of in-depth complex storytelling that was once exclusively confined to the big screen. Considering this, and that that box office sales have declined every year since 2002, the predictions of the film industry’s decline is not surprising. Yet somehow, few companies in the industry are close to going bankrupt.
We found an infographic published by Allmand Law Bankruptcy Firm that displays how the big studios and theater franchises have managed to stave off elimination and stay in business over the last decade. For one, the field has made strides in minimizing costs by upgrading file and content transfer to a cloud based system. Additionally, the use of social media to reduce the costs of advertising and gain viral attention for films has paid huge dividends. Take a look below for more information and see how companies like Regal Entertainment (RGC) and Cinemark (CNK) have managed to stay profitable in a changing environment.
Written by Dan Connelly