Hollywood movie producers had a record summer, crossing $4 billion mark in ticket sales — an apparent contradiction to their claims about the industry falling part under attack from unfair copying by online sources and other pirates.
They do point out that $4 billion is not a record when sales are adjusted for inflation (though even here, it is not far off its record a few years ago, according to a chart in a New York Times story about the industry). And they say the blockbuster movies, ranging from “Spider-Man 3” to “Rush Hour 3,” were also some of the most expensive films ever made — meaning that profits are down. Finally, it’s worth pointing out that they’re in the middle of negotiations with Hollywood guilds, another reason producers want to downplay things. Coming DVD sales are another question mark.
And the other question that remains open is how their online proceeds will fare. They’ve been cutting deals to distribute content online, via mobile, and in video games, and they’re increasingly sharing the profits with artists themselves (see our coverage).
Ultimately, it’s hard to tell how Hollywood is doing, because it’s so secretive. See this story in Slate two years ago about the guesswork the industry forces upon the rest of us.
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links for 2007-09-10 « David Black said:
[...] Hollywood sees record sales, but says jury is still out - VentureBeat “Hollywood movie producers had a record summer, crossing $4 billion mark in ticket sales — an apparent contradiction to their claims about the industry falling part under attack from unfair copying by online sources and other pirates.” (tags: media multimedia film business economics revenue trends migration) [...]