Film Studio's Depression Resistance a Myth

Popular folklore says that movie studios were unaffected by the Great Depression in the 1930′s, as people escaped their woes for a few hours of entertainment in a movie theater. According to this article in the Independent (UK,null,null,null), reality was a bit different…

So what has changed since 1929? The Great Depression did see American audiences flocking to the pictures, driven by the novelty of talking films, a desire for escapism and the scarcity of televisions at home.

But by 1933, as unemployment soared, cinema attendances had fallen by 40 per cent. One industry source said: “It was a bit of a myth that cinema did really well out of the Depression. Theatres were closing down the whole time. People stopped going.”

…but today, there is television and more importantly, DVD’s and Blue Ray discs give consumers the opportunity to experience a movie without the hassle or cost of going to a movie theater. For a family of four, going to the theater is an expensive proposition, tickets cost close to $40 and snacks and drinks can easily total $20. Compare this to the cost of renting a dvd for $3 or $4. Today, the studios are more concerned about making money than making art…

Hollywood is often perceived as a dream factory insulated from the wider world’s problems, but these days all the major studios are part of diversified multinational corporations, which have felt the economic chill in other parts of their businesses. Michael Gubbins, the editor of the film industry journal Screen International, said the attitude of studios towards new projects was changing dramatically. “They are now concentrating on film-making for profit. Historically, that hasn’t been such a focus. It is getting tougher out there.” GE’s announcement came shortly after Warner Brothers, which made last year’s Batman blockbuster The Dark Knight, said it would cut about 800 staff, or 10 per cent of its workforce, in response to the disintegrating market. Executives at its parent company, Time Warner, said: “Based on the global economic situation and current business forecasts, the studio will have to make staff reductions in the coming weeks in order to control costs.”

…yes, they will. As the sources of capital and credit continue to dry up, it will get more difficult to finance all but the most “no brainer” moneymaker films.