Box office figures have been falling since 2014, with a 6% drop in ticket sales that year. There are several factors contributing to this decline, including an overreliance on franchises and remakes, rising ticket prices, and the availability of new technologies that allow consumers to replicate the cinematic experience at home. As home cinema systems improve and piracy increases, people are finding alternatives to going to the movie theater. However, film studios are exploring new models of financing through crowd-funding websites and developing other revenue streams to compensate for lower box office returns.

2. Box office figures are falling.
Why do you think this is?
Read the hand-out from the Guardian website,
highlighting the key factors they say contribute to falling
box office figures
Now note down some of the reasons you think Box
Office figures may be falling
Consider everything we have studied so far
Do you regularly visit the cinema? If not, then explain
why!

3. Box office figures are falling.
Why do you think this is?
If this question came up in the exam, what would you write
about?
Declining appeal of stars
Steady increase in ticket
prices
Hollywood reliance on the
familiar ‘Franchises, re-
makes, re-imaginings etc’
New Technologies

4. Learning Objectives
Discuss why Hollywood box office figures are
falling
Identify the role new technologies have played in
box office decline
Complete exam style answer to previous FM2
question

5. Global Box Office
In 2014 US Box Office revenue hits its lowest point since 1995
Roughly 1.26 Billion consumers purchased cinema tickets
in 2014. This is the lowest since 2015
These figures represent a 6% drop in ticket sales from 2013
(1.34 billion tickets sold)
In our exam, we must show an awareness of WHY this
happened and explore some of the reasons for it
The general consensus on why 2014 was
such a poor year for cinemas was that “a
number of summer tent poles
underperformed compared to previous
instalments”

6. Despite the year containing many box office ‘hits’,
the year also saw a wide range of failures or films
deemed to have fallen short of their high
expectations
Hollywood also had to contend with a number of
high profile failures:
2014
What other
‘cinematic’ reasons
could be behind the
fall in box office
revenue?

7. 2014 leading in to ‘15
Even though cinema attendances have been mostly falling in the past
decade, many industry insiders predict 2015 to be a record year
Franchise film
making lead to last
years Box Office
drop
Franchise films are usually made/released in two year
cycles
This may lead to years like 2014 in the future – when
audiences are waiting for the BIG Franchises to return

8. It is impossible to identify one defining reason for
falling box office figures
It could be due to a unique social issue (2012)
Box Office Down
Experts said the July 20 mass shooting at a cinema in Aurora,
Colorado during a showing of Batman film The Dark Knight
Rises, may have had some effect.
Twelve people died and 58 were injured in the attack.
A survey conducted a month after the shooting showed 17 per
cent of people were still wary of attending cinemas.
• Alternative entertainment mediums
• Poor selection of Films
• Availability of films elsewhere
• High Concept TV series “box setting”
• And more many more…
We must show an
awareness of how all of
these factors contribute
to the waning box office
numbers

9. Handout task here
Box Office Down

10. New Technologies
In the 1950’s cinema attendances dropped
dramatically. Why was that?
Now, note down all the different ways that you are
able to view films in 2013
Now put your choices in order of preference (which
do you like the most and least?)
Then put your choices in order of which method you
use most often
Using this information, What predications can you
make about box office figures over the past ten years?

11. Why do you think these types of films are
generally under performing?
2012
A lot of the films that lost money in Hollywood were
special effects driven, High Concept Movies
They intend to offer the audience a ‘cinematic
experience’ through their use of special effects,
surround sound and huge screen
Before the new technological revolution, the cinema used to
be the only place that we could enjoy the ‘Cinematic
Experience’
With NEW TECHNOLOGIES, we can replicate that CINEMATIC
EXPERIENCE at home

12. Upon its release, the only way to enjoy the intended
‘cinematic experience’ of Avatar was in the cinema
The 3D technology the film boasted was not available for
home consumption
In 2013 we are able to replicate almost all cinematic
experiences in our own homes:
‘Home Cinema’

13. Whilst 3D TV sets and
surround sound systems
are expensive, they are a
one off payment
This poster compares the
prices families pay at the
cinema and at home
The development of New
Technologies has made
home cinema more
appealing to many people

14. What other NEW TECHNOLOGIES have contributed to declining
box office figures?
• Subscription to TV – cable, Satellite, digital
terrestrial
• Free to air TV
• DVD
• Blu Ray
• PC & Laptop
• iPod, MP4, other portable video players, Mobile
phones
• The internet – illegal pirating, sharing and
uploading
• Digital distribution – iTunes / Apple TV / Xbox live
• Increase in TV production values
New Technologies

15. New Technologies are not a new threat to Hollywood
The industry has always faced competition from
emerging technologies – and they have always been
able to draw their audiences back
After the introduction of TV in the 1950’s
studios branched out in to TV production
In the 1980’s studios began ‘horizontally
integrating’ their businesses models
More recently, cinemas have attempted to
offer unique experiences that can not be
replicated anywhere else
New Technologies

16. Despite their best efforts studios are finding it increasingly difficult
to combat the alternatives to cinemas
Piracy
The MPAA estimates that piracy & illegal downloads costs the US
industry $20 billion per year
However, these figures are disputed with some claiming the
industry losses only $446 million per year
Illegally downloading a movie does not take money from the
studio, it prevents potential profit
As a result, it is very difficult to say with accuracy how much
piracy costs the industry

17. In what other ways can film studios generate income
to compensate for falling box office figure?
Studios are now parts of a larger machine
Studios can make use of their Horizontally integrated
businesses to create franchises, sell merchandise and
develop other revenue streams for their film titles
Blu Ray Sales:
$347,894,126
(US only!)
Spend over
$2bn a year on
content

18. Using the information from previous lessons, today's notes and your
knowledge of the film industry you must now create an essay plan for
the following question:
Box office figures are falling.
Why do you think this is?
You now have 30 minutes to write an answer to this
exam question and post it on to the blog using these
labels:
Your Name
Box Office

19. Technological development is also affecting the way films are
financed, produced, distributed and exhibited
What do you know about the following companies?
New Technologies - Industry

20. Video Sharing Websites allow users to upload ORIGINAL
CONTENT which can then be accessed anywhere on earth
New Technologies - Industry
These websites offer aspiring
filmmakers the chance to store,
distribute and exhibit their work to a
global audience - FOR FREE
Filmmakers can use the internet to
profile their abilities – and studios can
use it to identify future talents
In 2011, YouTube financed the
education of 25 up and coming
filmmakers (each costing $35,000)
in attempt to foster future talent

21. PIXELS (Dir: Patrick Jean; 2011)
New Technologies - Industry
In 2010, Patrick Jean produced and
uploaded his short film ‘PIXELS’ to
Youtube

22. PIXELS (Dir: Patrick Jean; 2011)
New Technologies - Industry
Since then, Sony has developed a feature length
version, slated for release in July 2015 – staring
Adam Sandler, Sean Bean, Peter Dinklage &
Michelle Monaghan

23. KICKSTARTER
New Technologies - Industry
“We’re a home for everything from films, games, and music to art, design,
and technology. Kickstarter is full of projects, big and small, that are
brought to life through the direct support of people like you. Since our
launch in 2009, 8.1 Million people have pledged more than $1.6 Billion,
funding 79,000 creative projects. Thousands of creative projects are
raising funds on Kickstarter right now.”
Mozart, Beethoven, Whitman, Twain, and other artists funded works in similar
ways — not just with help from large patrons, but by soliciting money from
smaller patrons, often called subscribers. In return for their support, these
subscribers might have received an early copy or special edition of the work.
Kickstarter is an extension of this model, turbocharged by the web.

25. KUNG FURY (Dir: Patrick Jean; 2011)
New Technologies - Industry
Kung Fury is an upcoming Swedish
martial arts comedy film written
and directed by, and starring David
Sandberg. It is an homage to 1980s
martial arts and police action films.
It was funded through a
‘KICKSTARTER’ and set an initial
goal of $200,000(US)
As of March 2015, 17,731 backers
have donated $630,019
(hand-out with all different
payment options to be given out)

26. ‘Kickstarter’ – KUNG FURY
‘BACKERS’ –
number of people
who have
contributed to the
KickStarter
PLEDGED’ –
amount of money
that has been
donated by
‘BACKERS’

27. ‘Kickstarter’ – KUNG FURY
Can you think of any advantages to this type of film financing
Make a list of the ways KickStarter and similar services could
possibly affect AUDIENCES & PRODCUERS
Along side
KickStarter, there are
companies who offer
audiences the chance
to fund project, but
also receive a share
of the profits the
project makes.
What are the
implications of this?
AUDIENCES PRODUCERS

28. Cinema/Home
Cinema

29. Itwouldappearthatinan
attempttostemthedeclinein
cinemaattendances,
Hollywoodstudiosseemto
havefocusedonMEETING
EXPECTATIONS&RELYINGON
FAMILIARscenarios/storiesin
anattempttodrawconsumers
backtothecinema
Whydoyouthinkthismodelis
failing?
WhatdoyouthinkFilm
StudiosandCinemachainscan
dotodrawaudiencesbackto
thecinema?
1998 2014
1,462,967,591 1,267,354,957
TicketSalesComparisons:

30. ‘KickStarter’ – KUNG FURY
PLEDGE REWARD
$1
This is cool, why not? Easy way to brag on the
street ”I was one of the funders of this super mega
movie.”
$10
Digital copy of the script + thank you video from
director with exclusive behind the scenes material.
(Includes all previous rewards)
$100
Get a special edition VHS copy of the film! Who
could believe buying a new VHS in the year 2014?
For 100 dollars? That’s so insane your friends will
walk away from you! (and steal the VHS).
$100000
Play a major role in the movie as Kung Fury's ex
partner. Your name will appear on posters, covers,
credit-rolls and other cool places. We will provide
your travel and accommodation for the shoot and
the official premiere.
‘PLEDGERS’ can also
receive for various
donations:
• DVD
• T Shirts
• VHS Releases
• Signed copy of the
script
• Premier Tickets
• Production Diaries
• Name in Credits
• Be an ‘Extra’
• And more…