Sunday, March 6, 2011

$$ The Movies

I'm not sure what this says about our economy in general and the movie business in particular, but I thought it was interesting.

From 2002 to 2010, Hollywood has seen a 15% decline in the number of movie tickets sold.   There were 5 down years for tickets, two up years, and one flat year.  

This decline in ticket sales has been offset by a 36% increase in the average ticket price of a movie ticket.  Ticket prices have increased each year at a CAGR of 3.45%.

I suppose this proves there's some price inelasticity in movie tickets.  And I think 3.45% is not a bad approximation of the rate of price inflation.  By comparison, stamp prices as a proxy for price inflation have risen at a CAGR of 2.61% over the last 10 years. Where's the deflation again?
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2 comments:

  1. Gold_GerbMarch 6, 2011 at 10:12 PM

    Nice catch on the diamond pattern PS.

    Something interesting on the MFI with GLD.
    http://practicalt.blogspot.com/2011/03/ides-of-march.html

    ReplyDelete
  2. Think Tank ENTMarch 9, 2011 at 6:41 AM

    It means hollywood needs to stop recycling the same old squash over and over

    ReplyDelete