'Movies set to boom in Recession'

Monday, December 01, 2008

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Movies Set To Boom In 'Recession'
10:26am UK, Monday December 01, 2008
By James Silver, media reporter, Sky News Online

With the latest instalments of big franchises on the horizon - including Harry Potter releases due in 2009 and 2010 - the film industry is predicted to prosper in the expected recession.

In contrast to the rest of the media sector that has been left reeling by the turbulent economy, analysts are forecasting steady growth in worldwide box-office revenues.

In a report covering 2008-2012, professional services giant PriceWaterhouseCoopers predicted that global box office spend would grow from £18bn to £24bn over the period.

The economic situation has forced PWC to revise some of their predictions for the media sector.

But Nick George - a partner in the firm's entertainment and media practice - told Sky News Online that he was standing by their forecast for the film industry.

"Box office cinema attendance in the past has held up well in consumer recessions," he said.

"That's because the film industry's performance tends to much less connected with what's happening in the wider economic cycle and much more driven by 'hits' - by original content and great marketing."

Going out to the movies, he added, was seen as an "affordable luxury" in tough economic times.

"It's high quality entertainment, at a relatively modest price," he said.

"It's a cheap night out when compared to, say, going out to a restaurant for dinner. And the younger demographic use it as a place to go that's out of the house, away from their parents."

Screen International's editor Michael Gubbins is similarly "optimistic" about the film industry's "resilience" during the expected recession.

He argued that big releases like Mamma Mia, High School Musical and the latest Bond movie "have all done incredibly well" - and he sees no reason why that trend should not continue in 2009 and beyond.

"The industry's got a couple of Harry Potters up its sleeve, the next Bond, the next Pirates of the Caribbean and people will keep going to see the big franchises," he said.

"But I'm not sure that will have anything to do with seeking escapism during economic misery. Big films have been working well over the last few years anyway."

He continued: "So, yes, I'm optimistic about the box-office numbers, there are enough films in the can to keep that going. And I've seen no evidence anywhere in the world that a recession will stop people going to the cinema."

However, Mr Gubbins warned that while the main Hollywood studios will thrive, the independent sector - often responsible for the most original movies - would find it difficult to raise finance during the recession.

"The studios have begun to concentrate on fewer, but bigger films, while the riskier, middle-tier projects will struggle to get green lit," he said.

"Over the next few years, I think you'll see a smaller number of very well-funded, well-marketed studio films and a lot of other stuff, a lot of quality independent projects, will simply drop off the end."

(Sky News Online, 1st December 2008)

Posted by James Silver - On Monday, December 01, 2008

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