I have previously mentioned my opinion on the ever-rising ticket prices of movies today, but I have yet to really delve into the revenue aspect of the price hikes. After doing some research, I came across some interesting information.
Ticket sales are low, but revenue is still high
From looking at the chart, we can see that ticket sales are low, very low. In fact, they are at the second lowest amount since 1995, and yet revenue is actually at it's third highest amount in the past 16 years! It seems ridiculous, but when you think about it, it makes sense. Not as many people are buying movie tickets--instead choosing to illegally download new movies--so the film industry must compensate for this by raising the prices. As a result, they are still able to make enormous revenues even though less and less people are buying tickets for films.
Is this a trend that will continue? I think so. With the ever-increasing popularity of 3D films and the higher ticket price that comes with seeing such a film, the movie industry will still be able to make near-record amounts of revenue even if the number of ticket sales continues to fall. This trend is interesting because it shows that there are people out there who just cannot be bothered to spend so much money on a ticket and instead are not attending the movies, but on the flip side of that there are still many, many people willing to shell out whatever is necessary to go see a new film. Ticket prices will continue to go up, so even if the number of tickets sold continues to decrease, the industry will still be doing well. So well, that this may not even be a concern to them.
Nonetheless I find these numbers extremely interesting, although unsurprising. Piracy and illegally downloading movies is very frequent and I think there will be more people turning to this means of watching film the more tickets go up in price. However, barring a serious change in things, the movie industry will be fine. Well, not just fine, but better than ever.
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