Trends in American Entertainment Spending

TRENDS IN AMERICAN ENTERTAINMENT SPENDING 2000-2008 AVERAGE ANNUAL EXPENDITURES: $50,486 Northeast: $54,918 | Midwest: $47,846 | South: $46,823 | West: $55,453 AVERAGE ANNUAL EXPENDITURES HOUSING TRANSPORTATION FOOD PERSONAL INSURANCE AND PENSIONS $17,115 $8,583 $6,462 APPAREL & SERVICES 3.6% HEALTHCARE ENTERTAINMENT APPAREL & SERVICES CASH CONTRIBUTIONS EDUCATION $5,604 $2,979 $2,827 $1,817 $1,717 $1,060 $858 HOUSING TRANSPORTATION 33.9% 17.0% MISCELLANEOUS PERSONAL CARE PRODUCTS & SERVICES $606 ALCOHOLIC BEVERAGES $454 TOBACCO PRODUCTS & SMOKING SUPPLIES $303 $101 READING FOOD 12.8% APPAREL & SERVICES PERSONAL CARE PRODUCTS & SERVICES PERSONAL INSURANCE & PENSIONS 3.6% READING HEALTHCARE 1.2% 0.2% 11.1% 5.9% EDUCATION 2.1% TOBACCO PRODUCTS & SMOKING SUPPLIES 0.6% MISCELLANEOUS 1.7% CASH CONTRIBUTIONS 3.4% ENTERTAINMENT - 5.6% ALL CONSUMER UNITS OTHER 38% AUDIO & VIDEO FEES & 25% PETS, TOYS, HOBBIES & ADMISSIONS 21% ENTERTAINMENT SUPPUES, 16% EQUIPMENT & SERVICES PLAYGROUND EQUIPMENT EQUIPMENT & SERVICES M $1,060FE DER $707EI V $606 $454 NE 24% - S714 MW 21%- $574 w 22%-$721 NE: 15% - $439 S: 13% - $328 MW: 21% - $574 W: 18% - $610 NE: 37%-$1.09a S. 41% - $1,03O S 20% - $515 MW. 38%. $1,005 w 32% - $1.054 N MW. 21% 8622 w 20%- 5943 THIS NOTE IS LEGAL FOR ALL DEBTS, PUBLIC AND PRIVATE TENDER L11180916G WASHINGTON,D C. H, 2 L 12 L11180916 G 12 n Lusdedo Cahal 12 ONED OL LAR TOTAL US CONSUMER UNITS 120,770,000 AVERAGE ANNUAL BEFORE TAX INCOME: $63,563 | AVERAGE ANNUAL EXPENDITURES: $50.486 NORTH EAST WEST MIDWEST ENTERTAINMENT 5,8% $2,775 ENTERTAINMENT 5.4% $2,966 ENTERTAINMENT 6.0% $3,327 HOUSING 35.5% $19,686 CASH CONTRIBUTIONS FOOD 12.7% $7,043 HOUSING 32.5% $15,550 CASH CONTRIBUTIONS FOOD 12.5% $5,981 HOUSING 35.6% $19,551 CASH CONTRIBUTIONS 2.7% $1.483 1.8% $998 3.6% $1,722 EDUCATION 2.9% $1593 MISCELLANEOUS EDUCATION 1.8% $998 MISCELLANEOUS PERSONAL CARE EDUCATION 2.2% $1,053 MISCELLANEOUS PERSONAL CARE 1.7% $934 1.8% $998 5.5% $3,050 1.5% $718 6.4% $3,062 PERSONAL INSURANCE APPAREL 3.6% $1,977 TOBACCO 0.6% $330 PERSONAL APPAREL 3.4% $1,885 TOBACCO 0.5% $277 APPAREL 3.4% $1,627 TOBACCO 0.7% $335 INSURANCE 11.6% $6,55o 10.9% $6,044 ALCOHOL 0.9% $499 READING 0.3% $166 ALCOHOL 0.9% $431 READING 0.2% $96 ALCOHOL 0.9% $439 READING 0.3% $165 TRANSPORTATION TRANSPORTATION 15.8% $8,762 17.6% $8,421 AVERAGE ANNUAL BEFORE TAX INCOME: $68,031 AVERAGE ANNUAL EXPENDITURES: $26,941 AVERAGE ANNUAL BEFORE TAX INCOME: $61,063 AVERAGE ANNUAL EXPENDITURES: $27,786 PERSONAL INSURANCE FOOD 12.7% $6,975 10.9% $5,986 TRANSPORTATION 18.2% $8,897 PERSONAL CARE 5.5% $3,020 SOUTH ENTERTAINMENT 5.4% $2.528 AVERAGE ANNUAL BEFORE TAX INCOME: $70,436 AVERAGE ANNUAL EXPENDITURES: $22,348 HOUSING 32.6% $15.264 CASH CONTRIBUTIONS FOOD 13% $6,087 APPAREL 3.8% $1,779 ТОВАССО 0.7% $328 PERSONAL INSURANCE 3.7% $1,732 11% $5,151 EDUCATION 1.7% $796 MISCELLANEOUS 1.8% $749 PERSONAL CARE 6.1% $2,856 ALCOHOL 0.9% $375 READING 0.2% $94 TRANSPORTATION 18.1% $8,476 AVERAGE ANNUAL BEFORE TAX INCOME: $58,881 AVERAGE ANNUAL EXPENDITURES: $43,696 Consumers have cut back their overall out-of-home entertainment spending and have found many at-home entertainment replacements. % CHANGE IN EXPENDITURES DECLINE OF -37% -29% -10% -5% 0% HOUSEHOLD Community-based and affordable entertainment options, including movies, museums and family entertainment centers (FEC's) are faring better than extreme entertainment and major tourist destinations, due to the stayoation phenomenon. OUT-OFHOME 4TH HIGHEST ENTERTAINMENT LOWEST 20% OF LOWEST 2ND 3RD 20% OF INCOME EXPENDITURES, 20% OF LOWEST LOWEST INCOME 2000-2008 INCOME 20% OF 20% OF IN INFLATION INCOME INCOME ADJUSTED $ ADMIT ONE ADMIT ONE ADMIT ONE ADMIT ONE ANNUAL NORTH AMERICAN CINEMA BOX OFFICE (TICKET SALES) YEAR SALES 2005 1,376,000 1,395,000 1,400,000 1,363,000 1,421,000 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 the 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. 2006 2007 2008 2009 U.S. CONSUMER HOME ENTERTAINMENT RENTAL & SELF-THROUGH SPENDING (IN BILLIONS) VHS/UMD DVD BD/HD DIGITAL ТОTAL 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 POP CORN 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 $0.0 PFhub TM 2007 $16.4 $1.5 $2.1 $20.0 PERSONAL FINANCE SOURCES: bls.gov, whitehutchinson.com TRENDS IN AMERICAN ENTERTAINMENT SPENDING 2000-2008 AVERAGE ANNUAL EXPENDITURES: $50,486 Northeast: $54,918 | Midwest: $47,846 | South: $46,823 | West: $55,453 AVERAGE ANNUAL EXPENDITURES HOUSING TRANSPORTATION FOOD PERSONAL INSURANCE AND PENSIONS $17,115 $8,583 $6,462 APPAREL & SERVICES 3.6% HEALTHCARE ENTERTAINMENT APPAREL & SERVICES CASH CONTRIBUTIONS EDUCATION $5,604 $2,979 $2,827 $1,817 $1,717 $1,060 $858 HOUSING TRANSPORTATION 33.9% 17.0% MISCELLANEOUS PERSONAL CARE PRODUCTS & SERVICES $606 ALCOHOLIC BEVERAGES $454 TOBACCO PRODUCTS & SMOKING SUPPLIES $303 $101 READING FOOD 12.8% APPAREL & SERVICES PERSONAL CARE PRODUCTS & SERVICES PERSONAL INSURANCE & PENSIONS 3.6% READING HEALTHCARE 1.2% 0.2% 11.1% 5.9% EDUCATION 2.1% TOBACCO PRODUCTS & SMOKING SUPPLIES 0.6% MISCELLANEOUS 1.7% CASH CONTRIBUTIONS 3.4% ENTERTAINMENT - 5.6% ALL CONSUMER UNITS OTHER 38% AUDIO & VIDEO FEES & 25% PETS, TOYS, HOBBIES & ADMISSIONS 21% ENTERTAINMENT SUPPUES, 16% EQUIPMENT & SERVICES PLAYGROUND EQUIPMENT EQUIPMENT & SERVICES M $1,060FE DER $707EI V $606 $454 NE 24% - S714 MW 21%- $574 w 22%-$721 NE: 15% - $439 S: 13% - $328 MW: 21% - $574 W: 18% - $610 NE: 37%-$1.09a S. 41% - $1,03O S 20% - $515 MW. 38%. $1,005 w 32% - $1.054 N MW. 21% 8622 w 20%- 5943 THIS NOTE IS LEGAL FOR ALL DEBTS, PUBLIC AND PRIVATE TENDER L11180916G WASHINGTON,D C. H, 2 L 12 L11180916 G 12 n Lusdedo Cahal 12 ONED OL LAR TOTAL US CONSUMER UNITS 120,770,000 AVERAGE ANNUAL BEFORE TAX INCOME: $63,563 | AVERAGE ANNUAL EXPENDITURES: $50.486 NORTH EAST WEST MIDWEST ENTERTAINMENT 5,8% $2,775 ENTERTAINMENT 5.4% $2,966 ENTERTAINMENT 6.0% $3,327 HOUSING 35.5% $19,686 CASH CONTRIBUTIONS FOOD 12.7% $7,043 HOUSING 32.5% $15,550 CASH CONTRIBUTIONS FOOD 12.5% $5,981 HOUSING 35.6% $19,551 CASH CONTRIBUTIONS 2.7% $1.483 1.8% $998 3.6% $1,722 EDUCATION 2.9% $1593 MISCELLANEOUS EDUCATION 1.8% $998 MISCELLANEOUS PERSONAL CARE EDUCATION 2.2% $1,053 MISCELLANEOUS PERSONAL CARE 1.7% $934 1.8% $998 5.5% $3,050 1.5% $718 6.4% $3,062 PERSONAL INSURANCE APPAREL 3.6% $1,977 TOBACCO 0.6% $330 PERSONAL APPAREL 3.4% $1,885 TOBACCO 0.5% $277 APPAREL 3.4% $1,627 TOBACCO 0.7% $335 INSURANCE 11.6% $6,55o 10.9% $6,044 ALCOHOL 0.9% $499 READING 0.3% $166 ALCOHOL 0.9% $431 READING 0.2% $96 ALCOHOL 0.9% $439 READING 0.3% $165 TRANSPORTATION TRANSPORTATION 15.8% $8,762 17.6% $8,421 AVERAGE ANNUAL BEFORE TAX INCOME: $68,031 AVERAGE ANNUAL EXPENDITURES: $26,941 AVERAGE ANNUAL BEFORE TAX INCOME: $61,063 AVERAGE ANNUAL EXPENDITURES: $27,786 PERSONAL INSURANCE FOOD 12.7% $6,975 10.9% $5,986 TRANSPORTATION 18.2% $8,897 PERSONAL CARE 5.5% $3,020 SOUTH ENTERTAINMENT 5.4% $2.528 AVERAGE ANNUAL BEFORE TAX INCOME: $70,436 AVERAGE ANNUAL EXPENDITURES: $22,348 HOUSING 32.6% $15.264 CASH CONTRIBUTIONS FOOD 13% $6,087 APPAREL 3.8% $1,779 ТОВАССО 0.7% $328 PERSONAL INSURANCE 3.7% $1,732 11% $5,151 EDUCATION 1.7% $796 MISCELLANEOUS 1.8% $749 PERSONAL CARE 6.1% $2,856 ALCOHOL 0.9% $375 READING 0.2% $94 TRANSPORTATION 18.1% $8,476 AVERAGE ANNUAL BEFORE TAX INCOME: $58,881 AVERAGE ANNUAL EXPENDITURES: $43,696 Consumers have cut back their overall out-of-home entertainment spending and have found many at-home entertainment replacements. % CHANGE IN EXPENDITURES DECLINE OF -37% -29% -10% -5% 0% HOUSEHOLD Community-based and affordable entertainment options, including movies, museums and family entertainment centers (FEC's) are faring better than extreme entertainment and major tourist destinations, due to the stayoation phenomenon. OUT-OFHOME 4TH HIGHEST ENTERTAINMENT LOWEST 20% OF LOWEST 2ND 3RD 20% OF INCOME EXPENDITURES, 20% OF LOWEST LOWEST INCOME 2000-2008 INCOME 20% OF 20% OF IN INFLATION INCOME INCOME ADJUSTED $ ADMIT ONE ADMIT ONE ADMIT ONE ADMIT ONE ANNUAL NORTH AMERICAN CINEMA BOX OFFICE (TICKET SALES) YEAR SALES 2005 1,376,000 1,395,000 1,400,000 1,363,000 1,421,000 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 the 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. 2006 2007 2008 2009 U.S. CONSUMER HOME ENTERTAINMENT RENTAL & SELF-THROUGH SPENDING (IN BILLIONS) VHS/UMD DVD BD/HD DIGITAL ТОTAL 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 POP CORN 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 $0.0 PFhub TM 2007 $16.4 $1.5 $2.1 $20.0 PERSONAL FINANCE SOURCES: bls.gov, whitehutchinson.com TRENDS IN AMERICAN ENTERTAINMENT SPENDING 2000-2008 AVERAGE ANNUAL EXPENDITURES: $50,486 Northeast: $54,918 | Midwest: $47,846 | South: $46,823 | West: $55,453 AVERAGE ANNUAL EXPENDITURES HOUSING TRANSPORTATION FOOD PERSONAL INSURANCE AND PENSIONS $17,115 $8,583 $6,462 APPAREL & SERVICES 3.6% HEALTHCARE ENTERTAINMENT APPAREL & SERVICES CASH CONTRIBUTIONS EDUCATION $5,604 $2,979 $2,827 $1,817 $1,717 $1,060 $858 HOUSING TRANSPORTATION 33.9% 17.0% MISCELLANEOUS PERSONAL CARE PRODUCTS & SERVICES $606 ALCOHOLIC BEVERAGES $454 TOBACCO PRODUCTS & SMOKING SUPPLIES $303 $101 READING FOOD 12.8% APPAREL & SERVICES PERSONAL CARE PRODUCTS & SERVICES PERSONAL INSURANCE & PENSIONS 3.6% READING HEALTHCARE 1.2% 0.2% 11.1% 5.9% EDUCATION 2.1% TOBACCO PRODUCTS & SMOKING SUPPLIES 0.6% MISCELLANEOUS 1.7% CASH CONTRIBUTIONS 3.4% ENTERTAINMENT - 5.6% ALL CONSUMER UNITS OTHER 38% AUDIO & VIDEO FEES & 25% PETS, TOYS, HOBBIES & ADMISSIONS 21% ENTERTAINMENT SUPPUES, 16% EQUIPMENT & SERVICES PLAYGROUND EQUIPMENT EQUIPMENT & SERVICES M $1,060FE DER $707EI V $606 $454 NE 24% - S714 MW 21%- $574 w 22%-$721 NE: 15% - $439 S: 13% - $328 MW: 21% - $574 W: 18% - $610 NE: 37%-$1.09a S. 41% - $1,03O S 20% - $515 MW. 38%. $1,005 w 32% - $1.054 N MW. 21% 8622 w 20%- 5943 THIS NOTE IS LEGAL FOR ALL DEBTS, PUBLIC AND PRIVATE TENDER L11180916G WASHINGTON,D C. H, 2 L 12 L11180916 G 12 n Lusdedo Cahal 12 ONED OL LAR TOTAL US CONSUMER UNITS 120,770,000 AVERAGE ANNUAL BEFORE TAX INCOME: $63,563 | AVERAGE ANNUAL EXPENDITURES: $50.486 NORTH EAST WEST MIDWEST ENTERTAINMENT 5,8% $2,775 ENTERTAINMENT 5.4% $2,966 ENTERTAINMENT 6.0% $3,327 HOUSING 35.5% $19,686 CASH CONTRIBUTIONS FOOD 12.7% $7,043 HOUSING 32.5% $15,550 CASH CONTRIBUTIONS FOOD 12.5% $5,981 HOUSING 35.6% $19,551 CASH CONTRIBUTIONS 2.7% $1.483 1.8% $998 3.6% $1,722 EDUCATION 2.9% $1593 MISCELLANEOUS EDUCATION 1.8% $998 MISCELLANEOUS PERSONAL CARE EDUCATION 2.2% $1,053 MISCELLANEOUS PERSONAL CARE 1.7% $934 1.8% $998 5.5% $3,050 1.5% $718 6.4% $3,062 PERSONAL INSURANCE APPAREL 3.6% $1,977 TOBACCO 0.6% $330 PERSONAL APPAREL 3.4% $1,885 TOBACCO 0.5% $277 APPAREL 3.4% $1,627 TOBACCO 0.7% $335 INSURANCE 11.6% $6,55o 10.9% $6,044 ALCOHOL 0.9% $499 READING 0.3% $166 ALCOHOL 0.9% $431 READING 0.2% $96 ALCOHOL 0.9% $439 READING 0.3% $165 TRANSPORTATION TRANSPORTATION 15.8% $8,762 17.6% $8,421 AVERAGE ANNUAL BEFORE TAX INCOME: $68,031 AVERAGE ANNUAL EXPENDITURES: $26,941 AVERAGE ANNUAL BEFORE TAX INCOME: $61,063 AVERAGE ANNUAL EXPENDITURES: $27,786 PERSONAL INSURANCE FOOD 12.7% $6,975 10.9% $5,986 TRANSPORTATION 18.2% $8,897 PERSONAL CARE 5.5% $3,020 SOUTH ENTERTAINMENT 5.4% $2.528 AVERAGE ANNUAL BEFORE TAX INCOME: $70,436 AVERAGE ANNUAL EXPENDITURES: $22,348 HOUSING 32.6% $15.264 CASH CONTRIBUTIONS FOOD 13% $6,087 APPAREL 3.8% $1,779 ТОВАССО 0.7% $328 PERSONAL INSURANCE 3.7% $1,732 11% $5,151 EDUCATION 1.7% $796 MISCELLANEOUS 1.8% $749 PERSONAL CARE 6.1% $2,856 ALCOHOL 0.9% $375 READING 0.2% $94 TRANSPORTATION 18.1% $8,476 AVERAGE ANNUAL BEFORE TAX INCOME: $58,881 AVERAGE ANNUAL EXPENDITURES: $43,696 Consumers have cut back their overall out-of-home entertainment spending and have found many at-home entertainment replacements. % CHANGE IN EXPENDITURES DECLINE OF -37% -29% -10% -5% 0% HOUSEHOLD Community-based and affordable entertainment options, including movies, museums and family entertainment centers (FEC's) are faring better than extreme entertainment and major tourist destinations, due to the stayoation phenomenon. OUT-OFHOME 4TH HIGHEST ENTERTAINMENT LOWEST 20% OF LOWEST 2ND 3RD 20% OF INCOME EXPENDITURES, 20% OF LOWEST LOWEST INCOME 2000-2008 INCOME 20% OF 20% OF IN INFLATION INCOME INCOME ADJUSTED $ ADMIT ONE ADMIT ONE ADMIT ONE ADMIT ONE ANNUAL NORTH AMERICAN CINEMA BOX OFFICE (TICKET SALES) YEAR SALES 2005 1,376,000 1,395,000 1,400,000 1,363,000 1,421,000 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 the 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. 2006 2007 2008 2009 U.S. CONSUMER HOME ENTERTAINMENT RENTAL & SELF-THROUGH SPENDING (IN BILLIONS) VHS/UMD DVD BD/HD DIGITAL ТОTAL 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 POP CORN 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 $0.0 PFhub TM 2007 $16.4 $1.5 $2.1 $20.0 PERSONAL FINANCE SOURCES: bls.gov, whitehutchinson.com TRENDS IN AMERICAN ENTERTAINMENT SPENDING 2000-2008 AVERAGE ANNUAL EXPENDITURES: $50,486 Northeast: $54,918 | Midwest: $47,846 | South: $46,823 | West: $55,453 AVERAGE ANNUAL EXPENDITURES HOUSING TRANSPORTATION FOOD PERSONAL INSURANCE AND PENSIONS $17,115 $8,583 $6,462 APPAREL & SERVICES 3.6% HEALTHCARE ENTERTAINMENT APPAREL & SERVICES CASH CONTRIBUTIONS EDUCATION $5,604 $2,979 $2,827 $1,817 $1,717 $1,060 $858 HOUSING TRANSPORTATION 33.9% 17.0% MISCELLANEOUS PERSONAL CARE PRODUCTS & SERVICES $606 ALCOHOLIC BEVERAGES $454 TOBACCO PRODUCTS & SMOKING SUPPLIES $303 $101 READING FOOD 12.8% APPAREL & SERVICES PERSONAL CARE PRODUCTS & SERVICES PERSONAL INSURANCE & PENSIONS 3.6% READING HEALTHCARE 1.2% 0.2% 11.1% 5.9% EDUCATION 2.1% TOBACCO PRODUCTS & SMOKING SUPPLIES 0.6% MISCELLANEOUS 1.7% CASH CONTRIBUTIONS 3.4% ENTERTAINMENT - 5.6% ALL CONSUMER UNITS OTHER 38% AUDIO & VIDEO FEES & 25% PETS, TOYS, HOBBIES & ADMISSIONS 21% ENTERTAINMENT SUPPUES, 16% EQUIPMENT & SERVICES PLAYGROUND EQUIPMENT EQUIPMENT & SERVICES M $1,060FE DER $707EI V $606 $454 NE 24% - S714 MW 21%- $574 w 22%-$721 NE: 15% - $439 S: 13% - $328 MW: 21% - $574 W: 18% - $610 NE: 37%-$1.09a S. 41% - $1,03O S 20% - $515 MW. 38%. $1,005 w 32% - $1.054 N MW. 21% 8622 w 20%- 5943 THIS NOTE IS LEGAL FOR ALL DEBTS, PUBLIC AND PRIVATE TENDER L11180916G WASHINGTON,D C. H, 2 L 12 L11180916 G 12 n Lusdedo Cahal 12 ONED OL LAR TOTAL US CONSUMER UNITS 120,770,000 AVERAGE ANNUAL BEFORE TAX INCOME: $63,563 | AVERAGE ANNUAL EXPENDITURES: $50.486 NORTH EAST WEST MIDWEST ENTERTAINMENT 5,8% $2,775 ENTERTAINMENT 5.4% $2,966 ENTERTAINMENT 6.0% $3,327 HOUSING 35.5% $19,686 CASH CONTRIBUTIONS FOOD 12.7% $7,043 HOUSING 32.5% $15,550 CASH CONTRIBUTIONS FOOD 12.5% $5,981 HOUSING 35.6% $19,551 CASH CONTRIBUTIONS 2.7% $1.483 1.8% $998 3.6% $1,722 EDUCATION 2.9% $1593 MISCELLANEOUS EDUCATION 1.8% $998 MISCELLANEOUS PERSONAL CARE EDUCATION 2.2% $1,053 MISCELLANEOUS PERSONAL CARE 1.7% $934 1.8% $998 5.5% $3,050 1.5% $718 6.4% $3,062 PERSONAL INSURANCE APPAREL 3.6% $1,977 TOBACCO 0.6% $330 PERSONAL APPAREL 3.4% $1,885 TOBACCO 0.5% $277 APPAREL 3.4% $1,627 TOBACCO 0.7% $335 INSURANCE 11.6% $6,55o 10.9% $6,044 ALCOHOL 0.9% $499 READING 0.3% $166 ALCOHOL 0.9% $431 READING 0.2% $96 ALCOHOL 0.9% $439 READING 0.3% $165 TRANSPORTATION TRANSPORTATION 15.8% $8,762 17.6% $8,421 AVERAGE ANNUAL BEFORE TAX INCOME: $68,031 AVERAGE ANNUAL EXPENDITURES: $26,941 AVERAGE ANNUAL BEFORE TAX INCOME: $61,063 AVERAGE ANNUAL EXPENDITURES: $27,786 PERSONAL INSURANCE FOOD 12.7% $6,975 10.9% $5,986 TRANSPORTATION 18.2% $8,897 PERSONAL CARE 5.5% $3,020 SOUTH ENTERTAINMENT 5.4% $2.528 AVERAGE ANNUAL BEFORE TAX INCOME: $70,436 AVERAGE ANNUAL EXPENDITURES: $22,348 HOUSING 32.6% $15.264 CASH CONTRIBUTIONS FOOD 13% $6,087 APPAREL 3.8% $1,779 ТОВАССО 0.7% $328 PERSONAL INSURANCE 3.7% $1,732 11% $5,151 EDUCATION 1.7% $796 MISCELLANEOUS 1.8% $749 PERSONAL CARE 6.1% $2,856 ALCOHOL 0.9% $375 READING 0.2% $94 TRANSPORTATION 18.1% $8,476 AVERAGE ANNUAL BEFORE TAX INCOME: $58,881 AVERAGE ANNUAL EXPENDITURES: $43,696 Consumers have cut back their overall out-of-home entertainment spending and have found many at-home entertainment replacements. % CHANGE IN EXPENDITURES DECLINE OF -37% -29% -10% -5% 0% HOUSEHOLD Community-based and affordable entertainment options, including movies, museums and family entertainment centers (FEC's) are faring better than extreme entertainment and major tourist destinations, due to the stayoation phenomenon. OUT-OFHOME 4TH HIGHEST ENTERTAINMENT LOWEST 20% OF LOWEST 2ND 3RD 20% OF INCOME EXPENDITURES, 20% OF LOWEST LOWEST INCOME 2000-2008 INCOME 20% OF 20% OF IN INFLATION INCOME INCOME ADJUSTED $ ADMIT ONE ADMIT ONE ADMIT ONE ADMIT ONE ANNUAL NORTH AMERICAN CINEMA BOX OFFICE (TICKET SALES) YEAR SALES 2005 1,376,000 1,395,000 1,400,000 1,363,000 1,421,000 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 the 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. 2006 2007 2008 2009 U.S. CONSUMER HOME ENTERTAINMENT RENTAL & SELF-THROUGH SPENDING (IN BILLIONS) VHS/UMD DVD BD/HD DIGITAL ТОTAL 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 POP CORN 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 $0.0 PFhub TM 2007 $16.4 $1.5 $2.1 $20.0 PERSONAL FINANCE SOURCES: bls.gov, whitehutchinson.com TRENDS IN AMERICAN ENTERTAINMENT SPENDING 2000-2008 AVERAGE ANNUAL EXPENDITURES: $50,486 Northeast: $54,918 | Midwest: $47,846 | South: $46,823 | West: $55,453 AVERAGE ANNUAL EXPENDITURES HOUSING TRANSPORTATION FOOD PERSONAL INSURANCE AND PENSIONS $17,115 $8,583 $6,462 APPAREL & SERVICES 3.6% HEALTHCARE ENTERTAINMENT APPAREL & SERVICES CASH CONTRIBUTIONS EDUCATION $5,604 $2,979 $2,827 $1,817 $1,717 $1,060 $858 HOUSING TRANSPORTATION 33.9% 17.0% MISCELLANEOUS PERSONAL CARE PRODUCTS & SERVICES $606 ALCOHOLIC BEVERAGES $454 TOBACCO PRODUCTS & SMOKING SUPPLIES $303 $101 READING FOOD 12.8% APPAREL & SERVICES PERSONAL CARE PRODUCTS & SERVICES PERSONAL INSURANCE & PENSIONS 3.6% READING HEALTHCARE 1.2% 0.2% 11.1% 5.9% EDUCATION 2.1% TOBACCO PRODUCTS & SMOKING SUPPLIES 0.6% MISCELLANEOUS 1.7% CASH CONTRIBUTIONS 3.4% ENTERTAINMENT - 5.6% ALL CONSUMER UNITS OTHER 38% AUDIO & VIDEO FEES & 25% PETS, TOYS, HOBBIES & ADMISSIONS 21% ENTERTAINMENT SUPPUES, 16% EQUIPMENT & SERVICES PLAYGROUND EQUIPMENT EQUIPMENT & SERVICES M $1,060FE DER $707EI V $606 $454 NE 24% - S714 MW 21%- $574 w 22%-$721 NE: 15% - $439 S: 13% - $328 MW: 21% - $574 W: 18% - $610 NE: 37%-$1.09a S. 41% - $1,03O S 20% - $515 MW. 38%. $1,005 w 32% - $1.054 N MW. 21% 8622 w 20%- 5943 THIS NOTE IS LEGAL FOR ALL DEBTS, PUBLIC AND PRIVATE TENDER L11180916G WASHINGTON,D C. H, 2 L 12 L11180916 G 12 n Lusdedo Cahal 12 ONED OL LAR TOTAL US CONSUMER UNITS 120,770,000 AVERAGE ANNUAL BEFORE TAX INCOME: $63,563 | AVERAGE ANNUAL EXPENDITURES: $50.486 NORTH EAST WEST MIDWEST ENTERTAINMENT 5,8% $2,775 ENTERTAINMENT 5.4% $2,966 ENTERTAINMENT 6.0% $3,327 HOUSING 35.5% $19,686 CASH CONTRIBUTIONS FOOD 12.7% $7,043 HOUSING 32.5% $15,550 CASH CONTRIBUTIONS FOOD 12.5% $5,981 HOUSING 35.6% $19,551 CASH CONTRIBUTIONS 2.7% $1.483 1.8% $998 3.6% $1,722 EDUCATION 2.9% $1593 MISCELLANEOUS EDUCATION 1.8% $998 MISCELLANEOUS PERSONAL CARE EDUCATION 2.2% $1,053 MISCELLANEOUS PERSONAL CARE 1.7% $934 1.8% $998 5.5% $3,050 1.5% $718 6.4% $3,062 PERSONAL INSURANCE APPAREL 3.6% $1,977 TOBACCO 0.6% $330 PERSONAL APPAREL 3.4% $1,885 TOBACCO 0.5% $277 APPAREL 3.4% $1,627 TOBACCO 0.7% $335 INSURANCE 11.6% $6,55o 10.9% $6,044 ALCOHOL 0.9% $499 READING 0.3% $166 ALCOHOL 0.9% $431 READING 0.2% $96 ALCOHOL 0.9% $439 READING 0.3% $165 TRANSPORTATION TRANSPORTATION 15.8% $8,762 17.6% $8,421 AVERAGE ANNUAL BEFORE TAX INCOME: $68,031 AVERAGE ANNUAL EXPENDITURES: $26,941 AVERAGE ANNUAL BEFORE TAX INCOME: $61,063 AVERAGE ANNUAL EXPENDITURES: $27,786 PERSONAL INSURANCE FOOD 12.7% $6,975 10.9% $5,986 TRANSPORTATION 18.2% $8,897 PERSONAL CARE 5.5% $3,020 SOUTH ENTERTAINMENT 5.4% $2.528 AVERAGE ANNUAL BEFORE TAX INCOME: $70,436 AVERAGE ANNUAL EXPENDITURES: $22,348 HOUSING 32.6% $15.264 CASH CONTRIBUTIONS FOOD 13% $6,087 APPAREL 3.8% $1,779 ТОВАССО 0.7% $328 PERSONAL INSURANCE 3.7% $1,732 11% $5,151 EDUCATION 1.7% $796 MISCELLANEOUS 1.8% $749 PERSONAL CARE 6.1% $2,856 ALCOHOL 0.9% $375 READING 0.2% $94 TRANSPORTATION 18.1% $8,476 AVERAGE ANNUAL BEFORE TAX INCOME: $58,881 AVERAGE ANNUAL EXPENDITURES: $43,696 Consumers have cut back their overall out-of-home entertainment spending and have found many at-home entertainment replacements. % CHANGE IN EXPENDITURES DECLINE OF -37% -29% -10% -5% 0% HOUSEHOLD Community-based and affordable entertainment options, including movies, museums and family entertainment centers (FEC's) are faring better than extreme entertainment and major tourist destinations, due to the stayoation phenomenon. OUT-OFHOME 4TH HIGHEST ENTERTAINMENT LOWEST 20% OF LOWEST 2ND 3RD 20% OF INCOME EXPENDITURES, 20% OF LOWEST LOWEST INCOME 2000-2008 INCOME 20% OF 20% OF IN INFLATION INCOME INCOME ADJUSTED $ ADMIT ONE ADMIT ONE ADMIT ONE ADMIT ONE ANNUAL NORTH AMERICAN CINEMA BOX OFFICE (TICKET SALES) YEAR SALES 2005 1,376,000 1,395,000 1,400,000 1,363,000 1,421,000 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 the 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. 2006 2007 2008 2009 U.S. CONSUMER HOME ENTERTAINMENT RENTAL & SELF-THROUGH SPENDING (IN BILLIONS) VHS/UMD DVD BD/HD DIGITAL ТОTAL 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 POP CORN 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 $0.0 PFhub TM 2007 $16.4 $1.5 $2.1 $20.0 PERSONAL FINANCE SOURCES: bls.gov, whitehutchinson.com