Here’s Why 2013 Was a Great Year for Theaters
This year’s movie revenues promise to beat out last years record of $10.8 billion worth of ticket sales by 1 percent, and it’s all thanks to Disney’s (NYSE:DIS) Iron Man 3 — according to Bloomberg. Iron Man 3 made Disney a total domestic gross of $409 million, and $174 million in its opening weekend alone, according to Box Office Mojo. Part of this year’s success is attributable to the way films have been spread out over the course of the year, ensuring better revenue for big films that then don’t have as much competition in theaters — though the same cannot be said for December’s movie schedule.
“To get people to come out and spend the extra money, the movie has to be over the top. That’s one reason studios have become so good, and so focused, at producing bigger blockbuster movies,” said Martin Pyykkonen, analyst at Wedge Partners, to Bloomberg.
Of course, Iron Man 3 wasn’t the only big shot film to hit theaters and contribute to this years success. Just under Iron Man 3 came Lionsgate’s (NYSE:LGF) The Hunger Games: Catching Fire, Universal’s (NASDAQ:CMCSA) Despicable Me 2, Time Warner’s (NYSE:TWX) Man of Steel, and Disney’s Monsters University, according to domestic gross stats collected by Box Office Mojo. Four of the top five films were sequels, Man of Steel being the exception.
Of course, while films such as The Hobbit, Gravity, and Wolf of Wall Street did well, there are always going to be films that flop. The Lone Ranger, After Earth, and White House Down all fell into that category, with The Lone Ranger losing somewhere around $160 to $190 million, according to Bloomberg.
Budgets for films are also increasing, or at least there are a greater number of big budget films coming out compared with previous years. This is more practical considering the reduction in competition for big films. By spacing them out, those in the film industry ensure that enormous budgets don’t go to waste as viewers are split and flock to another large production.