Excerpt:

In Downturn, Americans Flock to the Movies

While much of the economy is teetering between bust and bailout, the movie industry has been startled by a box-office surge that has little precedent in the modern era. Suddenly it seems as if everyone is going to the movies, with ticket sales this year up 17.5 percent, to $1.7 billion, according to Media by Numbers, a box-office tracking company.  And it is not just because ticket prices are higher.

Source: http://www.nytimes.com/2009/03/01/movies/01films.html

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http://www.mpaa.org/EconReportLo.pdf

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Movie Attendance Study

http://www.mpaa.org/MovieAttendanceStudy.pdf

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Excerpt:

Motion Picture Theaters, Except Drive-In

Industry Snapshot

Motion picture theaters are part of an increasingly complex film industry that has been characterized by large initial capital investments and long revenue streams. Movie theaters are one aspect of the film industry, which also includes movie studios, broadcast and cable television, and the sale and rental of both DVDs and videotapes.

Motion picture theaters remain a significant contributor to the film industry. Although videos have surpassed theaters as the biggest contributor to film industry revenue, the United States' more than 38,000 movie screens create the initial market for a film's future formats. After disappointing revenues for years, domestic box-office receipts rose steadily in the 2000s, peaking at a record high of $9.53 billion in 2004, with a record worldwide high in 2006 of $25.82 billion. Domestic admission, 1.45 billion in 2006, reached 1.63 billion in 2002, a 44-year high.  The 2006 leaders in the motion picture theater industry included Regal Entertainment Group, AMC Entertainment, Cinemark Holdings, and Carmike Cinemas. Regional markets were influenced by a number of other chains or local establishments.

Current Conditions

By the early 2000s, digital technology was being adopted in many movie theaters. According to the Motion Picture Association of America (MPAA), figures from Texas Instruments show that the number of digital cinema screens increased steadily between 1999 and 2001, rising from 12 to 45. However, by 2003 this number mushroomed to 182, and in 2004 the number of digital screens almost doubled to 328, according to Variety. In its June 15, 2002, issue, the Los Angeles Times reported that theaters were "under pressure from the Hollywood studios to equip their cinemas for digital films," explaining that "The price tag of digital projection equipment--up to $200,000--is so daunting that many in the business question its value. But some advocates of digital technology say the payoff is in the alternate programming that the new equipment makes possible, such as live concerts, educational programs, corporate functions and other special events. At the very least, they say, the extra offerings could help fill seats from Monday to Thursday, when movie going usually drops off."

Digital technology was firmly ingrained in the market by the mid-2000s. Digital Cinema Implementation Partners, a company jointly owned by top three theater companies Regal, AMC, Cinemark, was working in conjunction with major studios Warner and Universal in 2007 to develop and release a digital delivery system that would revolutionize theater offerings. The system, if successful, would allow near-total flexibility in what movies were shown on screens and when, from last-minute additions for sold out shows to short runs of art-house offerings.

Box-office receipts continued to reach record levels each year during the early 2000s, rising from $7.67 billion in 2000 to $9.49 in 2006. Along with revenues and box-office receipts, average ticket prices continued to increase, rising $5.65 in 2001 to $6.55 in 2006. Movie screen counts also increased steadily, with the number of indoor movie screens reaching 38,143 in 2005.