Movies

Superheroes came to Hollywood’s rescue this summer. Is it enough to save movies?

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Superheroes came to Hollywood's rescue this summer. Is it enough to save movies?

As someone who has spent a good part of my life immersed in the world of cinema, I can’t help but feel a sense of both relief and apprehension when reading about this year’s box office performance. On one hand, it’s heartening to see that the industry is gradually recovering from the pandemic-induced slump, with movies appealing to diverse audiences leading the charge. On the other hand, the challenges facing the film industry are as daunting as ever – increased interest rates, shifting viewing habits, and a less reliable Chinese market, among others.

This summer’s box office has surpassed the quiet periods of winter and spring thanks to movies featuring cursing superheroes, chatty Minions, and animated representations of anxiety. Amidst a generally dismal outlook for the film industry, this is one shining example of success.

Based on numerous sequels, it’s anticipated that the overall box office earnings during summer (commencing from the first Friday in May) will reach approximately $3.6 billion by the Labor Day weekend, as suggested by Paul Dergarabedian, a senior media analyst at Comscore.

Despite not reaching the $4 billion haul from last year, which was boosted by “Barbie” and “Oppenheimer”, this summer‘s earnings are still higher than those in summers 2022, 2021 and 2020. This is a promising sign for cinema owners and studio executives who faced a challenging period from January to May with fewer and underperforming films.

With an eagerly awaited lineup of movies such as “Beetlejuice Beetlejuice,” “Wicked,” and “Moana 2” scheduled for release in fall and winter, experts in the field are expressing increasing optimism towards the remainder of this year and the future.

As a movie critic, I’m thrilled to express that if we manage to maintain this energetic pace we’ve been experiencing throughout summer 2022 and extend it into the fall season and beyond to early 2025, I have no doubt that the exhibition sector will be ecstatic. We can confidently claim, “We’re back!” said Jim Orr, president of theatrical distribution at Universal Pictures.

The current optimism is quite different from what was felt earlier this year, when the entire industry found itself worrying as the box office failed to engage viewers effectively. By Memorial Day, these concerns had escalated into full-blown panic due to disappointing performances of films like “Mad Max: Fury Road” and “Garfield,” resulting in one of the poorest Memorial Day weekend box office returns in nearly three decades.

Recently, it’s become apparent to many industry analysts that the past five months marked a trough in the movie theater slump. This downturn was influenced, in part, by a continued impact from the pandemic and simultaneous work stoppages by writers and actors, which disrupted both film production and marketing efforts.

According to Charles Rivkin, head of the Motion Picture Association, the sector endured a one-two hit. Initially, COVID-19 struck, causing our $11-billion industry to plummet to zero almost instantly. As we began to recover from that blow, another followed swiftly – the strikes.

At the start of the season, morale was rather low, with only a few triumphs such as Disney’s “Planet of the Apes: Kingdom” standing out. The majority of May releases, like Universal’s “The Fall Guy” and Warner Bros.’ “Furiosa,” unfortunately didn’t make much of an impact.

According to Dergarabedian, the anticipation for ’24 was clearly subdued. We weren’t starting the summer season with a Marvel film this time.

However, from June, “Bad Boys: Ride or Die” marked a revival in the box office. This film initiated a series of sequels that significantly boosted the crucial summer season’s earnings.

Animated films helped to power the rebound.

1. “The releases of ‘Inside Out 2’ and ‘Despicable Me 4’ generated impressive earnings, a significant achievement considering that animation films were among the last genres to regain momentum after the pandemic. This is because families have been cautious about returning to cinemas and find it convenient to stream movies at home.”

This year is expected to see multiple animated films hitting theaters, potentially generating a global family box office revenue of approximately $6.1 billion. If this happens, it will surpass the total earnings from 2018, as suggested by David A. Gross, who shares movie industry insights through his FranchiseRe newsletter.

“Indeed, I’d venture to say that post the release of ‘Super Mario’ in the spring of 2023, it seems we’ve returned to the days of moviegoing as a family, much like we did before the pandemic.”

So far, the domestic box office has accumulated approximately $5.6 billion, which is lower compared to the $6.6 billion it had amassed at the same time the previous year, as reported by Comscore. However, the summer box office has shown significant improvement.

Speaking as a film critic, let me express that I’m hesitant to declare victory prematurely, but I’m confident we’re heading in the right path. As CEO of Imax Corp., the colossal-screen technology company based in Playa Vista, I can confidently say that we’re making progress and are on our way to recovery.

One factor contributing to their comeback was that The Walt Disney Company rediscovered its rhythm this past summer, thanks to the success of “Inside Out 2.”

1. The Pixar animated follow-up to the 2015 movie “Inside Out” raked in a staggering $1.6 billion worldwide, securing its place as the highest earning animated film ever made and the leading movie of the summer. Simultaneously, the R-rated Marvel Studios collaboration between “Deadpool” and “Wolverine” brought in an impressive $1 billion globally, placing it as the second most profitable summer film.

Historically, Greg Marcus, CEO of Marcus Theatres (a movie theater chain with approximately 80 locations across 17 states), has noted that R-rated movies have had certain limitations due to the fact that many children are unable to attend these films.

However, the response to the movie suggests a strong demand for the product. He stated, “If you create it, we shall attend,” indicating that the public is eagerly anticipating it.

The box office performance of Pixar and Marvel movies has been substantial, given that Disney’s main brands have had difficulty maintaining consistency in the past few years. This inconsistency, along with Disney’s relatively weak post-pandemic performance, led many movie analysts to underestimate the opening weekend earnings for “Inside Out 2.”

According to Sean Gamble, CEO of Cinemark, a theater chain based in Plano, Texas with 20 locations in Southern California, everyone had high expectations for that movie. However, it surpassed those expectations significantly, making it one of the most outstanding performers we’ve seen in a long while.

Tony Chambers, an executive in charge of movie distribution at Disney, stated, “Quality is important, and quality pays off” – a notion similar to that of Disney’s CEO Bob Iger, who is implementing significant reductions across the company to address financial losses in its streaming service. He has asked creative teams to concentrate on theater releases rather than producing as much content as possible.

Appealing to broader, multicultural audiences doesn’t hurt either, Chambers said.

“He pointed out that a broader approach often yields better results, like catching more fish with a larger net. This principle seems to be shared by all the successful films of this summer.”

Despite the slight relief seen in the film industry this summer, it’s still grappling with significant hurdles. The box office earnings are yet to reach their pre-pandemic figures, and it remains uncertain if they will completely recover, given the evolving patterns of audience viewing preferences.

To date this summer, U.S. theaters have sold approximately 274 million tickets, representing a 18% drop compared to last summer’s figures. This is significantly lower than the 406 million tickets sold during the summer of 2019, a period when audiences were still unfamiliar with the concept of streaming major films at home.

Additionally, it’s become tougher to secure film funding due to rising interest rates. Previously dependable markets for increasing American films’ box office earnings, such as China, are no longer reliable. As a result, studios have been forced to cut costs and reduce their workforce significantly while attempting to reconcile their substantial investments in streaming platforms with disappointingly low returns.

Even though the box office earnings for the second part of this year might decrease by 10% in comparison to before the pandemic, that would actually be considered a positive outcome, as stated by Gross.

And this summer, the charge was led by a plethora of sequels.

In response, Gamble mused, “Occasionally, one might wonder, ‘Are there too many sequels?’ But when the tales are captivating, they always prove successful. And over the past few summer months, we’ve witnessed numerous instances of this.”

Absolutely, increasing the number of installments in a series doesn’t automatically ensure success, as demonstrated by “Furiosa.” However, this year’s sequels have been strong performers, providing a measure of comfort to the entertainment industry.

“Gross stated that when sales are strong and the ticket counter is busy, it positively impacts the entire business. It provides a sense of relief for everyone involved.”

This year, although original and non-franchise movies didn’t top the box office earnings, they undeniably provided a significant lift to the overall revenue.

Unexpected blockbusters like Neon’s skillfully marketed horror movie “Longlegs” (the indie studio’s most successful film thus far) and Sony’s adaptation of Colleen Hoover’s bestselling novel “It Ends With Us” didn’t generate the same level of profit as films such as “Deadpool” or “Inside Out 2”. However, they were significant in their own right, outperforming predictions and ensuring that moviegoers continued to flock to cinemas.

In simpler terms, “Each dollar makes a difference during the summer,” Dergarabedian explained. “Those blockbuster movies notably boosted our profits. Five twenty-million-dollar hits equate to one hundred million dollars. So, every bit accumulates to an impressive total, resulting in a fantastic summer overall.”

Emelyn Stuart, proprietor of Stuart Cinema and Café located in Brooklyn, New York, stated that this summer’s business has been remarkably better than the same period last year. Since her theater possesses only a single screen, she gets only one opportunity at a time to select a successful film.

In the previous year, among her selections were “Indiana Jones and the Dial of Destiny” and the DC Comics superhero movie “The Flash.” However, “The Flash” generated only $271 million globally due to a scandal involving its lead actor, Ezra Miller.

This year, her movie selections included “Bad Boys: Ride or Die,” “Despicable Me 4,” “Deadpool & Wolverine,” and “A Quiet Place: Day One.” She found the diverse array of movies offered an appealing mix.

To enhance her viewing experiences during fall, she’s considering adding an additional screen, primarily to appeal to family-oriented audiences by expanding her content options.

She stated that as “Wicked,” “Beetlejuice,” and “Joker” are approaching, I believe we’ll wrap up the year powerfully.

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2024-08-29 20:02

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