Movies Are Back! (Kind Of)
Christopher Nolan’s new movie “Tenet” brought in just over $20 million in American and Canadian sales during its opening weekend. The film is one of the first to be released since the reopening of about 70% of U.S. theaters following an easing of COVID restrictions. The maximum capacity for theaters right now is 50% and those in the biggest markets like New York and Los Angeles remain closed.
The $20 million opening weekend can be viewed in two different ways. Some see it as an encouraging sign that many consumers are willing to go back to movie theaters. However, others see the low revenue as a bad sign for the movie industry. It is estimated that “Tenet” needs about $500 million in revenue to break even.
This, of course, has larger implications than just the film industry. Many people in other areas of the service sector are looking at theaters to predict how consumers will behave over the coming months. The weekend’s box office numbers are up for your own interpretation, but the trend in box office revenues going forward will say a lot about the service sector as a whole.
Disney released its live action “Mulan” remake this weekend as well, but it did so through its streaming service Disney+. Subscribers to the service needed to pay an additional $30 to watch the movie. The success of the streaming service release could play a huge role in the future of the movie industry.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.