A banner year at the box office driven by films including "Fast & Furious," "Star Trek" and "Hannah Montana" is turning out to be a powerful recession vaccine for the nation's biggest movie theater chains.
Only a few months ago, investors feared consumers' reluctance to spend money would keep them at home and from going to the movies, depressing business at the country's 5,800 local theaters.
Like a twist ending to a Hollywood thriller, attendance at theaters this year has jumped 14%, according to tracking firm Hollywood.com Box Office.
Theater operators may have the weak economy and penny-pinching consumers to credit.
"Much like the 'dollar stores' in retail, the movie theaters are picking up a certain amount of discretionary entertainment spending, such as money spent on video games, staying in fancy hotels and going on long vacations," said Chris White, an analyst with Wedbush Morgan Securities.
A strong showing at the multiplex has been one of the few bright spots for the Hollywood studios, which have been buffeted by losses in DVD sales that have long propped up the movie business.
More beneficially, however, the upswing at the box office has lifted theater operators, or "exhibitors" as they call themselves. Despite the tinsel associated with Hollywood, movie theaters have never been a glamour business and still generate income much like they did three-quarters of a century ago: Two-thirds from ticket sales, one-third from selling popcorn, soda and candy.
In recent years, exhibitors have boosted revenue largely by raising ticket prices and not as a result of attracting more moviegoers through turnstiles. Admissions at theaters -- the number of tickets sold -- peaked at 1.6 billion in 2002, the year "Spider-Man" appeared alongside a trifecta of "Lord of the Rings," "Star Wars" and "Harry Potter" sequels. But otherwise theater admissions have generally remained flat, between 1.2 billion and 1.4 billion admissions annually since 1994.
Regal Entertainment Group and Carmike Cinemas Inc., the nation's No. 1- and 4-ranked chains, reported revenue increases of 6.8% and 4.8%, respectively. Cinemark Holdings, the third-largest theater owner, reported last week that revenue from admission and concessions sales rose 6.7%.
In some cases, the concession sales are being aided by special promotions.
