In times of financial upheaval, the thinking goes, movie theaters weather the storm as the cheapest form of live entertainment stretching back nearly a century to the Great Depression. People may be putting the brakes on exotic vacations, pricey sporting events or concerts, but a trip to see a film costs far less than other out-of-the-house offerings. “The staycation effect has proved itself over the years” says Wall Street analyst Eric Handler of Roth MKM.
Look no further than the astounding performance of A Minecraft Movie, which opened over the April 4-6 weekend to an astounding $162 million — $100 million ahead of projections — after the markets suffered their worst two-day loss in history as $4 trillion vanished amid the crisis over the Trump administration’s see-sawing tariff’s policies. An anomaly? Apparently not. In its second weekend — after another week of dire economic news and volatility, along with Trump hitting the pause button on tariffs — the pic grossed a huge $78.5 million over the April 11-13 frame in North America. Also worthy of note: year-to-date domestic revenue caught up with 2024 for the first time in months as Minecraft heads for the $1 billion mark globally.
However, others worry that the landscape has changed dramatically since COVID-19, which coincided with the rise of premium video-on-demand and streaming. Some Hollywood executives insist that as much as 15 percent of regular moviegoers have not returned to their old habits. Tentpoles and event pics such as Minecraft might work, but what about midrange movies and original properties?
At CinemaCon in April, Sony Pictures movie chief Tom Rothman and other top studio execs declared that rising ticket prices and shrinking windows are endangering theatrical. “Cost and windows can work for us or against us. Theaters can be smart about both, and Sony will work with you on both,” he added. “If theaters and studios manage for the long term and do the right thing, the future will be grand.”
Sony shared a study showing that one in three Americans now believe they can see a movie in the home within a month of its release even though many studios wait until 40 or 45 days before making a title available on premium video on-demand (Disney adheres to 60 days). The cost of a rental title PVOD title can be $20 to $30.
Of further concern is the growing reliance on premium offerings, such as Imax, which are driving more of a film’s bottom line. In cities such as Los Angeles and New York, it can cost upwards of $25 to see a title in a premium format. Depending upon whom you ask, the average movie ticket price for a general seat ranged from $11 to $13 in 2024. According to the newly branded Cinema United, the largest trade organization for theater owners, the average adult ticket price in 2024 was $11.51.
Steve Buck’s research firm EntTelligence puts the average price of a general seat at $13.82 in the first quarter of this year, compared with $13.02 in Q1 of 2024. Then there are premium screens. The average Imax adult seat jumped from $18.31 in the first quarter of 2024 to $19.51 in Q1 this year. Splitting the difference between a general seat and a premium seat, the average ticket for a standard seat rose from $12.14 in 2024 to $12.93 in Q1 of 2025.
For Minecraft, the cost of a general seat shot up to $15.15, according to EntTelligence. For those who believe moviegoing will persevere during the current economic downturn, it’s further proof that the box office could actually see a boost.
Notes Comscore chief box office analyst Paul Dergarabedian, “that the movie theater comeback — after a dismal month of March — should come at a time when global financial news is dominating the headlines should come as no surprise since people looking for an escape that doesn’t break the bank have historically gone to the movies.”
According to Handler, the domestic box office saw a revenue increase in seven out of the past eight recessions, including double-digit growth in three of those periods. On average, revenue rose 7.3 percent during the last eight economic contractions. And in 2009, domestic box office revenue cleared $10 billion for the first time.
The staycation effect will be crucial to the success of the 2025 summer box office, which kicks off May 2 with Marvel’s Thunderbolts*. Memorial Day could be a monster. That’s when Disney’s live-action remake of Lilo & Stitch and Paramount’s Mission: Impossible — A Final Reckoning debut. Other marquee summer tentpoles include Universal’s Jurassic World reboot and live-action update How to Train Your Dragon.
A version of this story first appeared in the April 16 issue of The Hollywood Reporter magazine. To receive the magazine, click here to subscribe.
