American movie industry's box-office blues

[Commentary] Americans bought 50 million fewer movie tickets in 2011 than the year before, continuing a downward slide for Hollywood that began in 2003. The anemic ticket sales — the lowest total in 16 years — more than offset yet another increase in average ticket prices, causing box-office revenue to fall for the second consecutive year.

The numbers have some industry watchers wringing their hands, but they're not a portent of doom for the film industry. They're just a sign that movie fans have adapted to new technologies faster than the studios have. Some independent movie studios and producers have responded by embracing on-demand services, even to the point of offering titles on demand while they're still playing in theaters. The major Hollywood studios haven't been so bold; they can't afford to alienate the theater chains that play a crucial role in launching and promoting the hugely expensive "tent pole" films that bring in the largest chunks of the studios' revenue. Nevertheless, this year's box-office numbers fit into a pattern that's consistent across all forms of entertainment. Technology is enabling consumers to be more choosy, and they're willing to sacrifice timeliness for value. Studios and theater chains can cling to the hope that the coming year's sequels, reboots and book adaptations will be bigger hits than last year's, but the trend lines spell trouble for the status quo.