Why ETFs Benefit From Box Office Bustle

April 10, 2009 at 12:00 pm by Tom Lydon

Ticket sales and business are booming at the nation’s box offices, and although the United States is in a recession, records are broken and entertainment exchange traded funds (ETFs) could rally from our desire to escape.

Overall revenue and ticket sales are up higher than the first quarter last year. “The Fast And The Furious” scored the biggest April opening ever, leading many to wonder why down-and-out Americans are spending their time at the theaters.

Call it escapism. People are searching for ways to take their minds off the grim economic news for a few hours. They may have an unstable job, hours that have been cut back or homes in foreclosure. So, why not take a few hours and get your mind off of life’s weightier issues?

Movie industry insiders claim that the movie industry actually is recession-resistant. True or not, over the past years, since 1965, there are times when the recession hits and box office sales go up. And the movies are actually a cheaper form of entertainment than most. Concert tickets, amusement parks and laser tag all come with a hefty price tag.

The structure of the movie industry is also playing a part: the three seasons of movies have switched from Summer fun movies, to December’s Oscar heavyweights to the industry junk from January to Spring. Lately, some of the better titles have come out in January, giving consumers a better pick. This gives box offices a chance to make money in an ordinarily off-season period.

Nate Dimeo for NPR Public Radio also says that while movie ticket sales are booming, concession stand sales are flat. Can you blame people for not buying a $20 box of popcorn? Unfortunately, this is where most movie houses make their money.