S&P’s biannual Movie and Entertainment Industry Survey came out last Friday, and it’s the financial chronicle of an industry under crushing change and in secular decline. Here are some excerpts from a Hollywood Reporter article:
Preliminary estimates from Adams Media Research found
a third consecutive year of declines at the boxoffice in North America,
with a 6.2% dip in boxoffice receipts to $9 billion for 2005.
A problem plaguing studios and exhibitors is increased
competition for consumers’ attention from emerging media platforms, the
S&P report pointed out.
… “The movie business is in the midst of a transition,”
Amobi said. “We believe declining theater attendance could be a secular
trend. Additionally, flattening DVD sales, rapid technological
advancements and evolving consumer habits are forcing movie studios to
reinvent traditional business models.”