Cinemas Keep Reeling Them In

Movie watchers just love the smell of popcorn in a recession.

That's judging by this year’s movie ticket sales, which are thriving even as other leisure venues like restaurants and casinos clamor for discretionary dollars.

So far, summer of 2009 box office is trending just 1 percentage point below the record-setting season in 2007, according to industry blogger Patrick Corcoran of the National Association of Theater Owners. That’s fueled in part by the release of eagerly awaited sequels involving Harry Potter, Transformers and Ice Age characters as well as a gangster flick starring a clean-shaven Johnny Depp and sans tentacled villains. But some analysts also surmise that consumers sacrificing vacations and other big-ticket items are treating themselves to more time in front of the nation’s 38,000 silver screens.

A trend piece would make a catchy business centerpiece and you have myriad angles from which to choose, from the plight of local independent theaters to pending movie house expansion in your area to the fiscal health and future of existing cineplexes. From a business-technology standpoint, 3-D and digital projection systems are hot topics and likely to alter the shape of local theater competition. Find out who’s ahead in the race to upgrade. Talk to theater managers about whether more cost-conscious patrons are trying to sneak in contraband snacks, and if they’re using promotional pricing to beef up crowds.

Resources abound; aside from Corcoran’s insider blog, the NATO home page features links, FAQs, statistics, legislative matters affecting the cinema trade. The site is worth a visit just for the YouTube replays of kitschy retro concession-stand come-ons on its home page.

Several large theater operators are publicly traded, including Regal Entertainment Group and AMC Entertainment Inc. - meaning you can get their financial records at their investor-relations sites.

Talk with commercial real estate developers about plans for new theaters and new theater trends. One that’s catching on is the premium movie experience, where patrons pay extra to dine on cooked-to-order meals, sip wine or cocktails and relax in reserved luxury recliners. Aimed at the post-teen crowd, this trend too can reshape the cinema trade in your area. Big players in the luxury theater realm include Gold Class Cinemas, and Muvico. Movie eateries include Alamo Drafthouse Cinema, Studio Movie Grill, Movie Tavern and Regal Entertainment Group’s Cinebarre concept.

Remember, even if these outlets aren’t yet in your area, their executives may be available to discuss industry ups and downs.

Business stories should include lots of dollar signs and numbers; one good source of a ready-made weekly box office chart is Nielson EDI Inc. You can ask local theater managers how attendance trends in your area compare to the national scene.

And don’t forget about drive-ins. The United Drive-in Theater Owner’s Association offers some (slightly stale) statistics as well as a listing of drive-ins reopened or built over the past decade. The nostalgia site DriveInTheater features a state-by-state directory as well as lore and preservation info.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.