The release of several hit films this summer benefits the entertainment industry in a big way. In this clip from “Ask Us Anything”. Motley Fool Live, recorded on 21.6Motley Fool contributors Rick Munarriz and Dan Caplinger discuss the recently released hit films that are drawing attention back to theaters.
Rick Munarriz: This is just an opening weekend and the biggest opening weekend in more than two years in terms of the amount of films people wanted to see. This is back to 2019 levels where Buzz Lightyear was disappointing at $51 million, but we had Top Gun Maverick, which opened four weekends ago, still over $44 million I think, and then Jurassic World Dominion, which opened the weekend before, actually topped nearly $60 million. It’s going to be a very interesting summer for the multiplex industry.
Obviously, these are stocks we’re talking about. companies like that AMCs (AMC 1.24%) the world that IMAXs (IMAX -2.77%) the world, that was a former newsletter recommendation and the other smaller Cinemamark‘s (CNK -1.95%) National CineMedia, which operates advertising for multiplex operators. But as for that, I think this is going to be a very interesting summer for the industry. Because unlike the last two years, we basically had a big film. We had Spiderman out in December, and then it took us about three months to put out The Batman reboot. After that we had to wait another two months for the Doctor Strange movie to come out to really get people back into theaters. Now this summer we just have three films that have been released in the last month. These will all be some of this year’s top drawers. We’re just getting started because this weekend we have the Elvis movie. The weekend after that we have the Gru Origin story of the Minions and then a Thor movie. A lot happens in the theater.
Dan Caplinger: It’s like a clearance sale.
Caplingers: It’s the clearance sale at Marshalls (TJX -0.93%), Man. These studios had years of projects in the hopper and they said, “Well, no, I won’t be releasing any in the summer of 2020. Nobody will be in the theater. No, I’m not going to do that in the summer of 2021 either, because, yeah, people are starting to go back to the theater.” That’s a hit. I want to get the full value from it. Well, you’ve built that inventory and it’s going to be fascinating to see how that goes.For avid moviegoers, this should be one of the best summers ever because so many hit movies come out because you’ve had this backlog in production.
Munarriz: It was a self-fulfilling prophecy. I remember in late 2020 when the James Bond film No Time To Die said we’re going to change that. Royal Cinemas [Cineworld (CINE 2.95%)], said the second largest theater in the country, that’s it. They threw in the towel. We will close our cinemas again after the first pandemic closure and only reopened them a few months later. Now you get this pipeline, you get this spigot of a product that’s coming out, and it’s definitely going to be an interesting summer. I’m not saying this is the perfect time to buy into this industry, but I think if you’re pessimistic about cinema because you’re like, ‘nobody goes to the movies anymore’, that’s certainly true for most Types of movies, but we’re talking action superhero, family-friendly movies that still do well in theaters. There will be a lot of them. If AMC, Cinemark and IMAX don’t make it this summer then it’s time to worry, but I definitely think it’s going to be an interesting summer.