From 1992 to 2002, every year has produced a new record in U.S. box office sales. This eleven-year run is the longest record-breaking stretch in the history of cinema operation. The bulk of the increase, however, is due to higher ticket prices, rather than the volume of sales. This is in spite of the fact that the number of the industry’s key demographic--15 to 24 year olds--showed 8% growth between 1998 and 2003. However, continued growth in the numbers of the key demographic will push the industry toward new income highs through 2008.

While the industry maintains that prices are fairly low compared to other leisure activities, only 10% of consumers see cinema prices as reasonable, according to Mintel’s consumer research. With advances in home video technology increasing the quality of the home experience, the industry cannot expect to continually use price as the primary means of market growth. At the same time, it appears that increasing in-theater advertising is the only effort studios and theaters are making to create a larger market.

Among the key issues covered in this report are the importance of the megaplex, the decline of the number of theaters through bankruptcy and consolidation, and consumer opinions toward snacks at the movies. Original consumer research examines attitudes and behavior by age, gender, ethnicity and income, and a six-year trend analysis predicts future growth.

For the purposes of this report, Mintel concentrates on commercial cinema venues. Other venues which license film prints and videos for profit are not included.

Report contents may be subject to change prior to the date of publication.

A number of U.S. reports covering related sectors have been published, are planned, or are in preparation, including:

Cable and Satellite Services, U.S. Report, December 2003

Movie Sales and Rental, U.S. Report, October 2003

Kids Lifestyles, U.S. Report, September 2003

Theme Parks, U.S. Report, May 2003

Lifestyles of Young Adults, U.S. Report, December 2002

Cameras, U.S. Report, October 2002

Video, Computer and Internet Games, U.S. Report, October 2002

Night Clubs, U.S. Report, August 2002

Home Video, U.S. Report, August 2002

Leisure Activities, U.S. Report, August 2002

Teen Consumer, U.S. Report, June 2002

Home Audio, U.S. Report, June 2002

Portable Audio Players, U.S. Report, May 2002

Post-Family Leisure Trends, U.S. Report, April 2002

Video Game Consoles, U.S. Report, March 2002