Hollywood box office revenue is expected to bounce back in the fourth quarter
By Trey Williams, MarketWatch
Box office revenue is down so far this year, but analysts expect it to finish roughly even with last year's record $11.4 billion
The slate of films set for release in the fourth quarter looks solid enough to pull the 2017 box office tally up and make it roughly flat compared with last year, according to analysts at Morgan Stanley.
Analysts led by Ben Swinburne upgraded shares of cinema chains Regal Entertainment Group (RGC) and Cinemark Holdings Inc. (CNK) to equal weight from underweight on Thursday.
"Regal and Cinemark shares have lagged the market year to date thanks to a disappointing summer box and [premium video on demand] concerns," Swinburne wrote in a note to investors. "We think fears of the implications of the former are overdone and of the latter reasonably priced in.
"Despite the recent outpouring of negative headlines on the box office and movie business, we expect the 2017 box office will finish roughly flat against a record 2016."
Hollywood had its worst summer movie season (http://www.marketwatch.com/story/the-2017-summer-box-office-is-hollywoods-worst-since-2006-2017-08-25) -- the first weekend in May through Labor Day -- in a decade. It was the first sub $4 billion revenue summer since 2007.
Also read:Studios blame movie reviews as summer starts slowly at the box office (http://www.marketwatch.com/story/movie-studios-are-blaming-reviews-for-the-poor-start-to-the-summer-box-office-2017-05-31)