For several years now, I have been arguing that the average downtown movie theater is in trouble as more and more people watch more and more films at home or even on their mobile devices. To counter this trend I have encouraged downtown theaters to rekindle “going to the movies” as a special occasion by adopting modern digital, 3D and IMAX projection systems and/or by integrating their cinemas with a restaurant, brew pub or ice cream parlor.
An article in today’s Wall Street Journal shows that 3D and IMAX are indeed having a positive impact on attendance:
- “After a record-shattering year of revenues last year, when the box office soared beyond $10 billion for the first time in history, revenues are running about 10.3% ahead of the same point last year, with attendance up by more than 8%.”
- “3-D has helped boost those figures. Last weekend, some theater owners significantly raised ticket prices—mostly on 3-D and Imax showings. In some cases, the price increases ran as high as 26%.”
- “Consumers, so far, don’t seem to mind the higher prices, as long as they come with premium experiences.” And we are still climbing out of the Great Recession!
