Box office sales on the rise as summer blockbusters like Crazy Rich Asians boost attendance, says Wedbush

Movie buffs, rejoice!

Year-to-date box office sales are at $8.75 billion, a 9% jump compared with the same period last year, as per a Wedbush note.

Full-year sales are expected to total $11.6 billion, a 4.8% increase year-over-year.

The year was off to a rough start with first-quarter sales falling 2%, but rebounding in the second quarter, rising 22.9% to $3.33 billion.

For the third quarter, sales are up 7.3% to $2.6 billion with Mission: Impossible-Fallout leading the charge.

Wedbush analysts had only expected the quarter to end up 0.5%, but summer blockbusters like Crazy Rich Asians and The Nun boosted sales.

Based on author Kevin Kwan’s book trilogy of the same name, romantic comedy Crazy Rich Asians crushed Labor Day sales, amassing $28.6 million in US and Canada over the holiday weekend alone, as per a Bloomberg report. Total domestic sales have reached an estimated $159.44 million, according to Box Office Mojo stats.

Analysts expect fourth-quarter sales to end down around 5% over last year as it struggles to compete with last year’s The Last Jedi.

The analyst said the threat of premium video on-demand (PVOD) has “disappeared” as attendance levels jumped in the second and third quarters.

“Strong attendance for most event films this summer underscores our view that movie-goers remain willing to pay for a full theatrical experience given compelling content,” wrote analyst Michael Pachter.

The analyst also predicted the demise of Helios and Matheson Analytics Inc’s (NASDAQ:HMNY) MoviePass subscription service, which has been struggling to stay afloat. Moviegoers may switch to subscription services like AMC Entertainment Holdings Inc’S (NYSE:AMC) A-List and Cinemark Holding Inc’s (NYSE:CNK) Movie Club, said Wedbush.

“We do not think MoviePass will survive much longer, and we think many subscribers will seek out alternatives in A-List and MovieClub. We expect Cineworld/Regal to announce a subscription service soon,” wrote the analyst.

For 2019, Wedbush expects box office sales to rise 3.2% to $12 billion with The Walt Disney Company (NYSE:DIS) titles taking the lead, especially in the third quarter.

Story by ProactiveInvestors