Special Reports

Good Question: Does The Economy Impact Theaters?

(WCCO) In a time where many are concerned about the fragile state of the U.S. economy, Americans are spending more money on a discretionary item: The movies.

One analyst reported that movie ticket sales nationwide are up 7 percent this summer, compared to last. According to Variety, a film industry trade magazine, attendance is rising even faster, up 14 percent in June 2008 as compared to June 2007.

One moviegoer we talked with at AMC Cinemas in Roseville said he's going to the movies more this year than he did last.

"It's a lot cheaper than going somewhere and traveling with the gas prices and that type of thing, so they're staying closer to home," he said.

"When the economy gets tough the theaters do well. It's a cheaper form of entertainment," said Mike Muller, President of Muller Family Theaters, based in Lakeville, Minnesota.

His chain of theaters sold out 23 different midnight showings of "Dark Knight," the new Batman movie. Those showings played at 8 different locations, bringing in 7300 people. Muller called that, "a lot of people."

Muller said his sales are up 3 to 4 percent this summer as compared to last.

According to the National Association of Theater Owners, this is not a surprising development. The group said that box office spending went up during 5 of the last 7 recessions or economic slowdowns.

At Jason DeRusha's WCCO-TV blog, Amber wrote: "It's an interesting paradox, AND one that has happened before, during the 1930's. America was in a depression, yet it was also the 'Golden Age of Movies.' I agree with others on here that it's escapism - vivid entertainment that can take you out of your miserable, 10-dollars-a-day, livin'-on-bologna-sandwiches existence and put you into some sort of glossy alternate universe."

Even though tickets to a weekend night movie can cost $10 at area AMC theaters, matinees and Sunday-Thursday nights cost just $5.

Jeff Bayer, film critic with TheScorecardReview.com, wrote: "Looking over the top grossing films, typically those are 'escape' movies. Big blockbusters that give people a chance to be visually dazzled without thinking too much."

Many believe that is a small price to be taken away from reality.

"It's two hours where you don't have to think about it," said one moviegoer. "You don't have to worry about what's going on in your life and money and stuff like that," said her friend.

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