Summary
1. Year to date domestic box office revenues are 14% higher than the record year of 2008 2. Driven by 3-D, 2008 saw a 33% year-to-year rise in the number of digital screens available worldwide.
Analysis
“Monsters Verses Aliens” was the winner at the international box office over the weekend, grossing $33.5 million from 7,467 runs in 47 territories. Ultimately, "Monsters Versus Aliens" will play on 1,600 3-D screens, the current number of 3-D screens internationally.
The MPAA recently released “2008 Theatrical Market Statics” report noted a sharp 33% year-to-year rise in the number of digital screens available worldwide. The growth spurt can be attributed to the Hollywood studios embracing cutting-edge 3-D production techniques. However, there are far fewer 3-D screens than the studios had been expecting. "Monsters Verses Aliens," the widest release thus far for a 3-D title, is showing in approximately 1,550 3-D locations out of a total theater count of 4,104. DreamWorks Animation expected at least 2,500 3-D screens to be available by this point.
Last week, during the ShoWest keynote, Fox Filmed Entertainment co-chair Jim Gianopulos said the economic crisis should not be a reason for theater owners to delay the installation of more 3-D screens, given that 3-D could add $1 billion a year in box office revenues….One reason for delay is that theater owners want studios to help foot the bill for outfitting 3-D screens….Gianopulos added "The capital needed for this is substantial, but even in the toughest of times, money finds its way to the right ideas."
"Monsters Versus Aliens" may have also marked a turning point in terms of the surcharge for a 3-D movie. Up until “Monsters Versus Aliens”, most theaters only charged an additional $2. But many theater charged an extra $3 for "Monsters Versus Aliens", with Imax adding a supplemental fee of $5. DreamWorks Animation’s topper, Jeffrey Katzenberg, has been urging theater owners to increase 3-D tickets by $5, noting that Imax theaters are selling out.
Aided by the 3-D surcharges plus increased attendance, year to date domestic box office revenues are 14% higher than the record year of 2008.
