The dominance of the “frequent moviegoer”
It’s official: Worldwide Box Office Continues to Soar”:
Los Angeles — The Motion Picture Association of America, Inc. (MPAA) today released its annual Theatrical Market Statistics Report for 2009. The report shows that global box office receipts reached an all time high of $29.9 billion, an increase of 7.6% over 2008 and almost 30% from 2005. The U.S./Canada market reached $10.6 billion, an increase of more than 10%, and International receipts increased 6.3% to $19.3 billion in 2009. The 3D market gave the U.S./Canada box office a boost accounting for 11% of the total compared to just 2% in 2008. With 20 films released in 3D compared to just eight in 2008, higher value entertainment contributed significantly to box office revenues.
“While the motion picture industry continues to face tremendous challenges elsewhere in our business, we’re reminded again this year that the cinema is the heart and soul of our industry and it is thriving,” said Bob Pisano, President and Interim CEO of the MPAA.
Ticket sales in the U.S. and Canada rose more than 5.5% from 2008, the first admissions increase in two years. Per capita ticket purchases in the U.S. and Canada also increased 4.6% to 4.3 tickets per person, the first significant increase since 2002. Sales were fueled by repeated visits to the cinema by frequent moviegoers — those who go to the movies once a month or more and who make up only 10% of the population — who bought half of all tickets sold in 2009.
“Four straight years of box office growth– the last three each setting a new record — show the enormous appetite audiences continue to have for great and entertaining movies in the best way to enjoy them — on a big screen with a big crowd,” said John Fithian, President and CEO of the National Association of Theatre Owners.
A number of highlights:
* 30% growth from 2005.
* 3D market up from 2% in 2008 to 11% in 2009.
* Ticket sales rose for the first time in two years.
But here’s the biggie:
Sales were fueled by repeated visits to the cinema by frequent moviegoers — those who go to the movies once a month or more and who make up only 10% of the population — who bought half of all tickets sold in 2009.
Think about that: 10% of the U.S. and Canada population bought half of all movie tickets sold domestically in 2009.
So if you’re one of those people who says, “How come Hollywood doesn’t make movies that I like,” guess what? You’re part of the 90% block of people who Hollywood does not care about — because you’re not a “frequent moviegoer.”
Want to know why Hollywood focuses on big budget, GGI-infused movies?
Want to know why Hollywood produces broad, high-concept R-rated comedies?
Want to know why Hollywood is obsessed with pre-branded brands that make a visceral connection to the memories of a targeted audience?
Want to know why Hollywood froths over franchise projects that they can dip into again and again and again, allowing them to schedule sequels every two years from here to eternity?
It’s because Hollywood is laser focused on that 10% block of moviegoers — mostly teens and young adults — a consumer group that reliably buys a ticket to see a movie in an actual theater at least one time per month.
And as long as the box office numbers grow, we can expect the movie studios to continue to acquire, develop, produce, and distribute movies that are by and large aimed at the “frequent moviegoer,” even if it represents a mere 10% of our population.
If you, as a screenwriter, are aiming beyond the indie film world and hope to sell a spec script to a major Hollywood movie studio, you must be aware of how they think. These statistics show that to you clearly in black-and-white.
UPDATE: The LA Times has this follow-up to the MPAA release:
The trade and lobbying arm of the major Hollywood studios released its annual report on the state of the theatrical business this morning, trumpeting — no surprise — how Hollywood has been riding high in the face of recession.
But the report was more notable for what it omitted: key financial data on the average cost of making and marketing movies, what used to be the only authoritative sources of such information.
For years, the Motion Picture Assn. of America released a statistical analysis showing the average movie costs of its members, made up of the major studios and their specialty labels. Then the trade group stunned many in Hollywood last year when it didn’t release the closely watched data, citing the difficulty of obtaining accurate information.
The MPAA followed the same script again this year. In 2007, the last year for which data was released, the average cost of producing and marketing a studio movie was $106.6 million, up 6.3% from the year before.
Studio executives have never been eager to disclose how much they spend, especially during a period of layoffs and recession.
In an interview, MPAA President Bob Pisano, said he faced no pressure to omit the data. He said the decision was made because the increasingly diverse mix of films and wide-ranging sources of financing made it difficult to come up with reliable data, noting the wide disparity in such pictures as “Avatar,” which cost more than $300 million, and “The Hurt Locker,” which cost about $15 million.
“I know it’s fascinating to people but it really doesn’t tell you anything,’’ Pisano said. “Getting accurate information is very difficult and it’s very misleading.”
In 2007, the average cost to produce and market a movie was $107M. That should help each of us understand why being a studio executive is a fear-based job. One bad greenlit project can lead to an early departure, albeit typically with a first-look producing deal.
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