Technology boosts movie industry box office sales

By Simon Aughton

Posted on 7 Mar 2007 at 09:06

Global box-office sales totalled a record $25.8 billion in 2006, casting new doubts on the movie industry's insistence on the detrimental effect of 'piracy'.

The Motion Picture Association of America (MPAA) annual report shows that the record figure was an 11 per cent increase on 2005. Sixty-three films grossed more than $50 million, a 12.5 per cent increase on 2005 with one film, 'Pirates of the Caribbean: Dead Man's Chest', adding more than $400 million to Hollywood's coffers.

The MPAA website claims that 'piracy' cost the worldwide movie industry $18.2 billion in 2005. More recently a study by the Los Angeles County Economic Development Corp claimed that file sharing, copying and DVD counterfeiting cost city $2.5 billion in lost revenues.

But for once such claims are put to one side.

'Last year film audiences around the world demonstrated through strong ticket sales that they love going to the movies,' said Dan Glickman, chairman and CEO of the MPAA. 'Technologies are emerging at a fast pace challenging our industry - filmmakers and exhibitors alike - to work harder and smarter to keep moviegoers coming back for more and I think we are well on our way.'

Rather than persuading potential moviegoers to stay on the sofa, the increasing number of alternative, often cheaper or free, ways of viewing films at home is encouraging people to visit the cinema.

According to a Nielsen Entertainment/NRG of US cinema visitors, a person who owns or subscribes to four or more home technologies, such as a DVR service, large television, DVD player and video on demand, visits the cinema more often than someone who owns or subscribes to fewer technologies, seeing an average of three more movies per year.