Dan Glickman at ShoWest
LAS VEGAS -- Citing long-term trends to offset short-term dips, Dan Glickman, who became president and CEO of the MPAA in September, presented his first state-of-the-industry address Tuesday at ShoWest 2005.
Speaking to a crowded house of exhibitors and distributors at the Paris hotel in what he dubbed his "maiden voyage" to the annual convention, Glickman judged that the "industry is healthy. We have had some growth this year -- not radical growth, but the trends are positive."
According to the MPAA's bookkeepers, U.S. boxoffice for 2004 amounted to $9.54 billion, up slightly from $9.49 billion the year before. Glickman noted that 2004 was the third consecutive…show more content… At the same time, there were slight increases in the costs of trailers and online Internet advertising.
As a result, the costs of producing and releasing the average MPAA release rang in at $98 million, down almost 5% from 2003's record of $102.8 million.
While only one out of 10 films recoups its costs during its theatrical release, four out of 10 make money during their full life cycle.
Glickman cited long-term trends, though, to buttress his contention that the industry remains on solid ground. Over the past five years, he noted, boxoffice has climbed more than $1 billion. And though individual admissions have been down the past two years, they have risen 20% -- an average of 2% a year -- over the past 10 years.
Foreign boxoffice has grown even more dramatically, he added. Last year, it totaled $15.7 billion, up more than 44% from 2003.
As for moviegoers, they enjoy a relative bargain according to National Association of Theatre Owners president John Fithian, who joined Glickman at the early morning press conference. Last year, the average ticket price hit $6.21, up 3% over the 2003 figure of $6.03. Still, Fithian noted, that 3% increase was less than the 3.3% increase in the Consumer Price Index for the year.
Argued Fithian, "Compared to other out-of-home entertainment options, movies remain more