Hollywood Expects Record Year
Movies ‘95
As the 1995 movie season fades to black, ticket sales are running ahead of 1994’s record box office. But no one in Hollywood is celebrating.
This year’s movies cost much more to make and distribute than last year’s, and higher ticket prices didn’t offset flat admissions.
“We’re sort of in a tailspin right now, and it’s getting worse,” said Tom Sherak, senior vice president of 20th Century Fox. “The profit margins at the studios have become unbearable.”
Following the Christmas weekend, domestic theaters had sold approximately $5.15 billion in tickets, according to the trade publication Daily Variety. In 1994 at the same point, moviegoers had spent $5.11 billion.
Even though 1995 will probably be Hollywood’s biggest year ever, topping the 1994 mark of $5.2 billion as calculated by Variety, it did not come cheaply.
The 1995 increase, a measly 0.8 percent, hardly covered significantly higher production costs.
Thanks mostly to skyrocketing star salaries (top actors now earn $20 million a movie) and fancier special effects, Hollywood spent an estimated 15 percent more this year bringing movies to the screen.
The average studio film cost more than $50 million to produce and distribute.
To just break even, then, the average studio film has to collect a worldwide gross of $100 million, since the studios typically receive half of all sales. And only a handful of 1995 titles can claim a worldwide gross of $100 million or more.
Two of the most expensive movies ever made - “Waterworld” and “Cutthroat Island” - were produced in 1995. “Waterworld” fell short. “Cutthroat Island” was released in the week before Christmas and grossed $2.4 million, ranking 11th for the week.
And while 10 movies. including “The Lion King” and “Forrest Gump,” grossed more than $100 million domestically last year, only seven 1995 movies did as well: “Batman Forever,” “Apollo 13,” “Pocahontas,” “Ace Ventura: When Nature Calls,” “Die Hard With a Vengeance,” “Toy Story” and “Casper.”
The average movie ticket cost $4.18 in 1994, according to the National Association of Theater Owners. The 1995 average cost will not be calculated until later next year.
Still, with 1.29 billion admissions, 1995 was not a complete loss.
Said Fox’s Sherak: “Having flat admissions in this world is not a bad place to be. There are so many other places where people could spend their money.” xxxx TOP 10 Here are the year’s top 10 movies at U.S. and Canadian theaters, as compiled Tuesday by Exhibitor Relations Co. Inc.: 1. “Batman Forever,” $184 million. 2. “Apollo 13,” $172 million. 3. “Pocahontas,” $141.4 million. 4. “Toy Story,” $115.7 million. 5. “Ace Ventura: When Nature Calls,” $102.9 million. 6. “Casper,” $100.3 million. 7. “Die Hard With a Vengeance,” $100 million. 8. “Crimson Tide,” $91.4 million. 9.”Waterworld,” $88.2 million. 10.”Seven,” $87 million.