| Show MOTION PICTURE OUTLOOK FAVORS MORE GROWTH For the movie industry 1979 should prove to be another fine year in both box office receipts and As there will be some but the overall financial gains will be healthier than for some economic sectors where less robust activity is The fuel as regards the availability of gasoline at may lower the levels of box office attendance in certain but we do not feel that this will be the industry's In the movie business has changed dramatically over the years and seems in quite good shape to face near-term DIVERSIFICATION WILL HELP The history of box office receipts shows considerable By the same many of the major powers in the fields have channeled movie profits made during their heydays into other some motion picture outfits' movie operations are but a small part of a much wider range of Such diversification should provide at least some insulation from the effects of the wide swings in box office receipts that have been seen in the And if other corporate interests quite they will provide a measure of strength for earnings as a OTHER In to general the movie have other strong Th in the motion picture industry's method of operation is a In late years the movie firms have not only sold their products to the TV networks or TV syndication but have also established huge film These banks of films represent an avenue of profit growth with a minimum of expenses involved compared with production outlays for the The birth of Cable TV and its expansion are also attractive and should mean a substantial source of income for the motion picture ESCAPISM As a general it seems that the worse the economy the better the movie companies Back in the most recent for many motion picture firms actually The upbeat tempo of box office activity during less prosperous times could be attributed in part to the ex-capist nature of such entertainment and its comparatively reasonable admission The industry taken singly extremely Revenues and earnings of the companies involved depend greatly on the total take their products receive at the box Economic while are less of a factor for the motion picture industry than for most other And as we said motion pictures are only a part of the broader financial make-up of some PROFIT STIMULI A recent study by the Research Department of Babson's Reports that 1979 will be another bright year for the movie allowing for some fuel-related In addition to a fairly healthy operating the companies have the momentum of the good earnings achieved in and as the economy eases consumers may turn away from more expensive forms of leisure-time activity and direct their time and money toward far less expensive pleasures such as the In the final it should be noted that income levels have been on the increase for many coupled with steadily more time off for workers and an ever larger number of people has made a great many more people able to afford the Babson's Reports is advising its investment clients to retain ownership of motion-picture-related stock especially in widely diversified It is an industry too often under-estimated in terms of its longer-term |
