Hollywood Sees Record Sales Despite Belt-Tightening Consumers

Maybe it is time to add movies to the lists of countercyclical goods that become so in vogue during recessionary times. Some countercyclicals include those goods whose sales remain steady during down times because they are inelastic. In other words, their demand is not impacted by economic conditions or price changes. To an extent, medicines, fuel, and cigarettes fall into this category, for various reasons. Another class of countercyclicals includes goods which replace others, and therefore increase in quantity, during down times because they are cheaper alternatives.

Though a parent with several children and hands full of sodas and popcorn might cringe at the characterization of a day at the movies as 'cheap,' it is true that such an outing would be less than a day at the amusement park, or certainly a weekend away. It is also certainly less money to bring a date to the movies than an expensive dinner, or a night at a martini bar, activities the likes of which are completely foreign to those on a student loan salary.

Combine this relatively small pecuniary hit with the fact that there have been some very popular movies this year, and even during a recession, Hollywood is staring a record year in the face. No word yet on whether or not Avatar alone cost more than even the record amount Tinseltown is bringing in this year, but presumably that is James Cameron's problem.