Movie Industry Set a Record in 1988 With Firm Boost From Christmas Films
NEW YORK -- The movie industry is off to a strong start for 1989, thanks to the continuing box office draw of a number of Christmas movies that helped boost 1988 revenue 3.5%, to a record $4.4 billion.</br></br>But industry analysts differ over how long the current crop of movies will draw patrons, and they question whether the industry can sustain the annual increases that have brought box office revenue to record highs in each of the past few years. A.D. Murphy, who compiled the box office data for Variety, the show business newspaper, for example, said the industry's prosperity may be "peaking" and that the industry may be about to enter another recession.</br></br>Walt Disney Co., as expected, emerged as the industry's market share leader, with 19.5% of the 1988 revenue, even though the studio didn't have a huge Christmas hit. Gulf & Western Inc.'s Paramount Pictures Corp. unit was the box office leader at Christmas with "Scrooged" and "The Naked Gun." But because of a less impressive release schedule earlier in the year, Paramount came in No. 2 for 1988 with a 15.2% share of box office revenue.</br></br>Fewer pictures were released in the 1988 holiday season than in most previous years, and so far, none of the holiday releases has emerged as a potential $100 million-plus blockbuster. But a number of movies, as expected, sold between $25 million and $55 million in tickets. And, said Mr. Murphy, "The holiday season was just great, considering that both Christmas Eve and New Year's Eve fell on a Saturday night."</br></br>Some industry analysts said a number of films released around Christmas appear likely to continue to draw moviegoers for at least another month, including MGM/UA Communications Co.'s "Rain Man" and MCA Inc.'s Universal Studios' "Twins." "Rain Man," which stars Dustin Hoffman and Tom Cruise, sold more than $42 million of tickets in just three weeks of release; "Twins" sold more than $55 million in about four weeks.