What prompts consumers to go to the movies?
With the exception of a few hits such as Guardians of the Galaxy and The Hunger Games: Mockingjay, 2014 saw a down year at the box office and an even worse summer.
But the consulting firm PricewaterhouseCoopers has compiled a report that explores the reasons for the dismal turnout and predicts a recovery for 2015. The document, "Summer 2014 moviegoing declines a blip on the radar?,'' was based on the responses of focus groups and a survey with more than 1,000 respondents. It will be released Wednesday.
The report finds that about 25% of respondents said they were going to the movies less often than they did the previous year. High ticket prices and movie content were listed as the main reasons why people stayed away from theaters.
But the responses indicated that when the price and subject matter are right, "people will be there at the theaters,'' says PwC partner Joe Atkinson. "This is not an industry without pressure, but there is an upside to the future box office.''
Ticket prices have remained about the same since 2013, when they averaged $8.13 (and slightly higher during summer months), according to Box Office Mojo. But the report suggests lowering them, and notes that consumers would be especially receptive to theater incentives. Those in the key 18-to-34 moviegoing demographic favored approaches that include:
- A monthly subscription service for theaters. "This has the greatest opportunity for incremental box office upside generated from less frequent movie goers — many of whom are cautiously interested," the report states.
- Last minute cheap seats. "A good theater perk."
- The ability to watch a movie at home at the same time it is released in theaters. That's "highly appealing" to consumers, most of whom said they'd be willing to pay more for the privilege.
- Theaters showing live events, such as sports and concerts. That "gives consumers another reason to venture out and buy a ticket."
Many of these initiatives are already being considered or implemented by theater owners.
"What you will see is studios and theater operators will continue to be creative to keep people coming to the theaters," says Atkinson.
The report also concludes that most consumers claim not to be strongly influenced by film reviews, advertising and social media. A more important factor, cited by 35% of the respondents, was a friend's recommendation.
Ranking last among the drivers of movie attendance: The option of viewing a film in 3-D.