Movies Recession-Prone: Another Myth Dies

Hollywood has said that it's recession proof, because in hard times people will seek escape from their worries by going to the movies.  The Wall Street Journal (subscription required) reports a new study that found just the opposite–when time are tough, people skip the movie-popcorn-soda expense.  Perhaps they watch a movie on broadcast television, or rent a DVD for a couple of bucks.  So far this year, box office sales are down 3.27% from last year.

The business planning implication for us outside of Hollywood is to be skeptical of the received wisdom that Industry X is recession proof.  Your industry might possibly be recession-proof, or at least recession-resistant, but check the data before accepting that conclusion.