To The Moon

Box office sales have been slow to recover to pre-pandemic levels, even after three years since the unfortunate outbreak of Covid. However, over the weekend, there was a lot of excitement and buzz surrounding the movies Barbie and Oppenheimer, which reignited people's interest in films. This raises the question of whether Barbie could potentially contribute to regaining the box office sales.

Before the Covid outbreak and up until 2010, the box office consistently grossed over $10 billion annually. However, post-Covid, the figures dropped below this mark. Although there are signs of recovery as the cinema industry reopened after the pandemic, the progress has been gradual.

There is hope that 2023 might witness box office sales exceeding $10 billion, considering that we are slightly more than halfway through the year, and the current sales stand at $5.3 billion. The possibility of achieving this milestone increases with the release of more popular films.

One factor contributing to the decline in box office sales is not solely related to demand. The number of films released in theaters has significantly decreased. Prior to the pandemic, an average of 800 films were released each year, but post-pandemic, this number dropped to below 500.

Movie distributors and cinemas have been cautious and selective about the films they screen. This caution stems from the possibility of some social distancing measures still being in place during the early stages of reopening, and the gradual recovery of the demand for big-screen experiences. As a result, they prefer to screen films that they are confident will attract an audience.

Despite the challenges, the average box office sales per film have shown a complete recovery. In 2022 and 2023, films brought in an average of $15-16 million, compared to the pre-pandemic average of $12-13 million. This indicates that audiences are indeed returning to theaters, but the lack of sufficient film offerings is limiting their frequency of visits.

In order to boost box office sales, movie distributors and cinemas need to gain confidence and screen more films. However, the current Hollywood strike poses a risk as it may delay film production and releases, potentially impacting box office sales in 2024.

Regarding the recent box office sales over the weekend, Barbie and Oppenheimer grossed $155 million and $81 million, respectively, in North America. Barbie emerged as the top-grossing film of 2023 during its opening weekend, with a chance of surpassing The Super Mario Bros Movie as the highest-grossing film of the year. The Super Mario Bros Movie had grossed $146 million in its opening weekend.

Warner Bros distributed Barbie, and Oppenheimer was distributed by Comcast's Universal. In addition to these major distributors, there are others like Disney, Sony, and Paramount, who also receive a portion of the box office sales for the films they distribute. These companies are large media conglomerates with diverse business interests, some of which have been underperforming lately. They have been grappling with fierce competition, a decline in advertising revenue from cable TV, and losses in their streaming ventures. Therefore, a revival in box office sales would be enthusiastically embraced by these companies, provided if they can successfully resolve the ongoing Hollywood strike without any major disruptions.