Why Investors Care About Box Office Revenues

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Box office revenues are just a fun way to understand the movie business. Or not. That’s false. They tell investors something. Everything tells investors something. We’re going to explain how an investor would digest box office revenue results. First off, you hear tons of stuff about how the movie business is dying and everything is online and all this chatter. Let’s make something clear. The movie business isn’t dying. People still watch movies. They just watch increasingly online now, rather than in theaters. You have two general streams of movie-related revenue in the world: box office and streaming. Box office revenues are those at movie theaters. Streaming revenues are those that belong to Netflix, Amazon Prime Video, YouTube Movies and now Disney Plus and Apple TV Plus. Here’s where it gets good. Box office revenues have had several years of year-over-year declines in the past decade as people have adopted streaming. Now, box office revenues are expected to grow at around 1% a year for a few years. Streaming revenue globally is still in high growth mode. To see exactly what this means for investors, watch the quick video above.