Trends In American Entertainment Spending

TRENDS IN AMERICAN ENTERTAINMENT SPENDING, 2000-2008 AVERAGE ANNUAL EXPENDITURES $ 50,486 MW: $47,846 NE: $54,918 S: $46,823 W: $55,453 APPAREL AND SERVICES 3.6% PERSONAL CARE PRODUCTS AND SERVICES 1.2% TRANSPORTATION 17.0% HOUSING HEALTHCARE 5.9% READING 0.2% 33.9% AVERAGE ANNUAL EXPENDITURES EDUCATION 2.1% TOBACCO PRODUCTS AND SMOKING SUPPLIES 0.6% HOUSING $17,115 $8,583 $6,462 03 TRANSPORTATION FOOD PERSONAL INSURANCE & PENSIONS PERSONAL INSURANCE FOOD AND PENSIONS $5,604 $2,979 $2,827 $1,817 $1,717 $1,060 $858 ALCOHOLIC BEVERAGES 12.8% MISCELLANEOUS 1.7% HEALTHCARE 11.1% ENTERTAINMENT APPAREL AND SERVICES 0.9% CASH CONTRIBUTIONS 3.4% CASH CONTRIBUTIONS EDUCATION MISCELLANEOUS PERSONAL CARE PRODUCTS AND SERVICES $606 ALCOHOLIC BEVERAGES $454 ENTERTAINMENT 5.6% TOBACCO PRODUCTS AND SMOKING SUPPLIES $303 $101 READING ALL CONSUMER UNITS OTHER (ENTERTAINMENT SUPPLIES, EQUIPMENT, AND SERVICES) 16% $454 S: 13% - $328 W: 18% - $610 NE: 15% - $439 MW: 21% - $574 FEES AND ADMISSIONS 21% $606 NE: 24% - $714 S: 20% - $515 W: 22% - $721 MW: 21% - $574 PETS, TOYS, HOBBIES, AND PLAYGROUND EQUIPMENT 25% $707 S: 24% - $609 W: 28% - $943 NE: 24% - $714 MW: 21% - $622 38% $1,060 AUDIO AND VISUAL EQUIPMENT AND SERVICES S: 41% - $1,030 MW: 36% - $1,005 W: 32% - $1,054 NE: 37% - $1,098 TOTAL US CONSUMER UNITS: BEFORE TAXES: $258,411 AFTER TAXES: $120,770 WEST MIDWEST NORTHEAST NUMBER OF CONSUMER UNITS: NUMBER OF CONSUMER UNITS: BEFORE TAXES: 68,031 AFTER TAXES: 26,941 BEFORE TAXES: 61,063 AFTER TAXES: 27.786 NUMBER OF CONSUMER UNITS: BEFORE TAXES: 70,436 AFTER TAXES: 22,348 12.7% 15.8% 8,762 0.3% 166 12.5% 5.981 17.6% 8,421 0.2% 96 7,043 FA 0.9% 431 5.5% 1.8% AA 0.9% 6.4% 3,062 2.2% 0.6% 12.7% 6,975 499 3,050 998 1,053 330 35-5% 19,686 1.8% 998 1.8% 998 32.5% 15,550 1.5% 718 3.6% 0.9% 0.3% 165 1,722 439 3.4% 1,885 0.5% 10.9% 6,044 3.4% 1,627 0.7% 11.6% 35.6% 2.9% 1593 277 335 6,550 19,551 6.0% 5.8% 3.6% 2.7% 1,483 3.327 2,775 1,977 13% 6,087 32.6% 15,264 18.1% 8,476 0.7% 328 18.2% 8,897 O 10.9% 5,986 3.7% 1,732 3.8% 5.5% 3,020 6.1% EA 0.9% 0.2% 11% 5.4% 375 1,779 2,856 94 2,966 5,151 SOUTH 1.7% 934 1.8% 1.7% 796 5.4% 2,528 NUMBER OF CONSUMER UNITS: 749 BEFORE TAXES: 58,881 AFTER TAXES: 43,696 entertainment spending and have found many at- home entertainment replacements. % CHANGE IN EXPENDITURES Consumers have cut back their overall outof-home DECLINE OF HOUSEHOLD -5% 0% OUT-OF-HOME ENTERTAINMENT EXPENDITURES, Community-based and affordable entertainment options, including movies, museums and family entertainment centers (FEC) are faring better than extreme entertainment and major tourist destinations, due to the staycation phenomenon. -10%z 2000-2008 IN INFLATION ADJUSTED $ -29% -37% SALES ANNUAL NORTH AMERICAN CINEMA BOX OFFICE (TICKET SALES) YEAR 1,376,000 1,395,000 When consumers do spend on out- of-home entertainment, they are demanding more value for their dollar. This does not necessarily mean that price is number-one determining factor: rather, the perceived value has to be there. An illustration of this is moviegoers have been willing to pay a premium price to see quality 3D movies, such as Up and Avatar. 2005 1,400,000 1,363,000 1,421,000 2006 2007 2008 U.S. CONSUMER HOME ENTERTAINMENT RENTAL & SELL-THROUGH SPENDING (IN BILLIONS) 2009 VHS/UMD DVD BD/HI-DEF DIGITAL TOTAL 1999 $12.2 $1.1 $0.0 $0.6 $13.9 2000 $11.4 $2.4 $0.0 $0.7 $14.5 2001 $10.9 $5.3 $0.0 $0.7 $16.9 2002 $9.6 $8.6 $0.0 $0.7 $19.0 2003 $6.9 $13.1 $0.0 $0.7 $20.7 2004 $4.4 $16.7 $0.0 $0.7 $21.8 2005 $2.1 $18.9 $0.0 $0.8 $21.7 2006 $0.4 $20.2 $0.0 $1.0 $21.6 2007 $0.1 $19.7 $0.3 $1.3 $21.4 2008 $0.1 $18.4 $0.9 $1.6 $21.0 2009 $0.0 $16.4 $1.5 $2.1 $20.0 ADMIT ONE Sources: bls.gov, whitehutchinson.com LOWEST 20% OF INCOME 2ND 20% OF INCOME 3RD 20% OF INCON 4TH 20% OF INCON HIGHEST 20% OF INCOME