While some people are trying the old psychological tricks of trying to say everybody is going to movies again and the slump is over, we need to look at the realities of the situation closer.
First of all, last year was one of the worse slumps in history, so anything you compare with it will look good.
For example revenue is up 4.81 percent over 2005, but attendance isn't even up 2 percent, and that is with huge expenditures on pretty much the best movies Hollywood is capable of putting out. Even with all of that, around 85 percent of people still would prefer to watch movies at home.
The second thing that needs to be considered is that the numbers are still far behind the 2004 year, being down 2.25% in revenue and a huge 8.17 percent in attendance.
With attendance being close to the same, pretty much all that has happened this year has been an increase in overall prices to attend a movie. People are trying to spin this into some type of great success, but let's also wait for the profit numbers to come in as the cost for making movies is growing exponentially.
As we talk about here often, theater owners have already started adding other means of income to their places of business as they can't count on movies to bring profitability to their enterprises. They see what is happening in the industry and you just can't "spin" your way out of that reality.
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