Shifting Distribution Patterns
The world of film distribution is changing. What we take for granted, and have for years, may soon no longer be the case. Movies open in theatres. Three months later, they're on DVD. Then they move to pay TV and finally free TV. Theatre audiences in the U.S. and Canada are shrinking. Hollywood has compensated for this by raising prices, so that the overall theatrical grosses go up while the number of people buying tickets goes down. Last summer was a disappointment in that everything went down. Deadline Hollywood reports that the summer movie season ended with grosses in the U.S. and Canada down 2.8% over last summer and the number of tickets sold dropped 4.3%. And that was with a rise in ticket prices of 1.5%. Just like studios have gone to digital projection as a way to cut their distribution costs, they're now shifting to downloads to cut their costs on DVD manufacture and distribution. DVD sales have gone down in recent years, s...