Avatar’s success gives boost to struggling cinemas but future is still uncertain
The highly anticipated Avatar sequel has ranked as the sixth-highest grossing movie ever, giving cinemas a much needed boost, although some analysts warn they are not yet in the clear.
After six weeks on the big screens, “Avatar: The Way of Water” surpassed a staggering £1.6bn ($2bn) in box office sales on Sunday, Disney estimates. Over the weekend, the film picked up a breezy £16m ($19.7m).
The film topped the 3D box office, achieving the best performance in seven years, with many watching it in 3D as director James Cameron intended.
The sequel lured over a million cinema goers into Odeon screens across the UK during the Christmas period.
Carol Welch, Odeon Managing Director UK & Ireland, told City PM she was “delighted to see the excitement with which audiences reacted to this spectacular film,” adding that she was hopeful about what 2023 has in store.
Avatar’s success is “no small feat given the cost-of-living crisis whipping around key markets”, Susanna Streeter, retail analyst at Hargreaves Lansdown, told City PM
“The fact that Disney has been able to attract such crowds to theatres to see a premium film when budgets are squeezed is testament to the blockbuster credentials of the movie,” she said. “It’s clear that when a hit movie comes to town, people are still willing to pay top dollar for a cinema ticket, to experience the full effect of the big screen.”
However, there are question marks about the health of the UK’s cinema chains, with Cineworld predicting that box office sales to remain below pre-pandemic levels until 2025.
“It is true that cinema footfall has increased from the lows of 2020,” Michael Hewson, an analyst at CMC Markets told City PM “In 2021 there was about 74m tickets sold, which is still well below the 176m sold in 2019, so there is still a long way to go before we can say with any confidence that we have turned a corner.”
Whilst the success of films like Avatar “could well increase footfall in fits and starts”, Hewson thinks the pre-pandemic levels of football will not be back “any time soon” because audiences are used to watching movies online and have no shortage of streaming options to pick from.
The Way of Water is only the second instalment in Cameron’s Avatar franchise, with three more scheduled for 2024, 2026 and 2028. The first Avatar movie, also directed by James Cameron, is the top grossing film of all time, taking £2.3bn ($2.9bn) at box office.