Kiplinger's economic experts explain that Hollywood is having a good year, with summer blockbusters yet to hit, but there are financial hurdles even for Tinsel Town.
Hi, I’m David Muhlbaum, Web Editor for the Kiplinger Business Resource Center. Hollywood will do well this year, a rare bright spot in the economy. People may spend less on entertainment during the recession but they still spend a movie ticket even with popcorn, soda, snowcap is still a relatively cheap night out. Domestic box-office receipts are on coursed to break 10.5 billion this year up from 9.85 billion in 08. Ticket sales are 11% stronger than this time last year in what’s traditionally a slow period and they’ll zoom come December blockbuster season with new X-Men, Star Trek, Harry Potter, Terminator and Transformer sequels. Also expected to do well are Public Enemies, G.I. Joe and Pixar’s Up. But the movie industry still has problems to reckon with. Tight credit will reduce the number of films it can produce. Piracy will keep hiding into profits and studios will have to cut jobs. Go to Kiplingerbiz.com for more forecast like this and other resources to help you make smart business decisions.