2022 Box Office Revenue Has Been Robust, But Can Ticket Sales Be Sustained?
The year 2022 is shaping up to be a good one for the movie industry, which has struggled to regain its footing following COVID-19 shutdowns. So far this year, box office sales are up over 250% compared to 2021. Still, revenue lags behind 2019’s pre-pandemic levels by about 33%.
Movies such as Top Gun: Maverick by Paramount (PARA) and Skydance have made some analysts optimistic for the industry’s prospects. The film has generated around $521 million in US revenue. Other movies such as Elvis, Jurassic World: Dominion, and The Black Phone each snagged over $20 million in ticket sales this previous weekend.
Optimism over the potential for a sustained rebound is tempered by concerns tied to inflation, which could diminish theater attendance. In an environment where consumers’ wallets are increasingly stretched thin, discretionary spending on things like movies may be the first cut from budgets.
Others counter that movies are somewhat “recession proof” given their lower cost, relative to other forms of recreation.
Upcoming Film Releases
Industry observers say original content provided by non-franchise films will play an important role in the industry’s recovery. The revenue they generate fills the gaps between blockbuster releases.
There is still a lot coming to theaters this year, with a range of films for audiences of different ages. These include Disney (DIS) and Marvel’s Thor: Love and Thunder and Black Panther: Wakanda Forever, Universal’s (CMCSA) Minions: The Rise of Gru as well as Sony’s (SONY) Bullet Train. For those consumers who are rethinking road trip plans amid soaring gas prices, a drive to the local theater may prove to be an entertaining alternative.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.