REPORT
Is Hollywood Making
Too Many Movies?
S
tudios aren’t churning out as many films as they
produced a decade ago, but there’s a case to be
made that there are still too many movies hitting
multiplexes.Lower production costs and the rise of digital technology have lowered the barrier to entering the
movie business, making it possible for more people to try
to achieve their dream of being the next Steven Spielberg.In 2004, roughly 490 films were released on fewer
than 1,000 screens, according to data compiled by the
National Association of Theatre Owners (NATO). Last
year, that number ballooned to 563 movies. The problem
is that greater profits didn’t follow the influx of films. In
2004, revenue for films in this sector hit $380 million and
admissions topped
out at 61 million.
Ten years later,
revenue stood at
$370 million, while
admissions sputtered to 45 million.
Frequently, these
films are vanity releases or pictures
with limited commercial
appeal
and artistic value
that are booking a
handful of theaters
in the hopes of
goosing digital and
home
entertainment sales.“Fifty
percent of the movies being opened in New York and Los Angeles should
never have been released theatrically,” said Seth Willenson, an entertainment industry consultant. “It dilutes
the opportunity for there to be a true breakthrough independent film.”Willenson believes that boom years for the
1% have left a group of people with money to burn — a
state of mind that the movie business encourages. The
problem \