Economy plummeting but movie box office surging thanks to Harry Potter, Pirates

After a horrible start to 2011, Hollywood’s power brokers had a lot riding on this summer’s movie season. By the looks of the failing economy, you wouldn’t think the numbers would’ve picked up. But riding on the backs of big budget sequels, like the billion dollar hits Harry Potter and Pirates of the Caribbean, the movie industry has something to smile about. Save for the booming technology sector in Silicon Valley, Hollywood seems the be the only bright spot in an economy that looks wobbly at best.

Analysts are predicting that box office receipts will be up at least five percent from last summer (early May through Labor Day weekend in September) as totals are closing in at $4 billion in ticket sales. That thanks in part to a number of big budget sequels with a trio of them selling more than $1 billion worldwide: Harry Potter and the Deathly Hallows – Part 2, Transformers: Dark side of the Moon and Pirates of the Caribbean: On Stranger Tides.

It’s well known that movies are one of the few recession-proof entertainment options. As unemployment goes up, consumers spend less and find cheaper entertainment, usually the movies.

So while year to date, attendance is lower than last year (due to a rocky winter and quiet spring), the summer has given Hollywood executives the positive boost it needs as it premieres its typically more serious dramas for awards seasons. Plus, the upcoming releases of Twilight, Mission Impossible, Happy Feet and Alvin and the Chipmunks will surely help moviegoers and the industry’s bankroll happy again.