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U.S. Box Office Revenues Hit $11.1B: Can It Set a New Record?

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On Dec 11, U.S. box office revenues hit $11 billion. And with 18 days still left, 2018 is likely to set a new record. Footfalls at movie theaters have been relatively stable over the past three decades but a spate of hits in 2018 is likely to make it a record year for the box office.

Moreover, the holiday season so far has been impressive and with a host of films up for release around Christmas, the domestic box office is expected to benefit further. Interestingly, The Walt Disney Company (DIS - Free Report) is once again leading the race with two of its big-ticket releases having set new records at the box office.

Box Office Set for New Record

On Dec 11, domestic box office revenues hit $11.1 billion and 2018 is likely to finish with a record-shattering haul. With another 18 days to go, it is likely to break the record $11.4 billion collected in 2016. This year’s revenues are already running 10% ahead of 2017 and 6% ahead of 2016, per Comscore. Last year, the domestic box office grossed $11.1 billion in total.

After a disappointing 2017, this year has been good for the domestic box office and might even hit a record-breaking $12 billion according to analysts’ predictions. Moreover, the box office is likely to get a final boost ahead of the all-important Christmas and New Year. Interestingly, there is no year-end Star Wars film for the first time this year.

That said, the holiday season so far has been impressive, with the mood set slightly more upbeat with Venomfrom Sony Pictures Entertainment, a division of Sony Corporation of America , setting the record for the biggest opening weekend ever for a movie released in October.

Understandably, major movie studios are gearing up for one final go before the yearend. AT&T, Inc.’s (T - Free Report) Warner Bros’ The Mule, Twenty-First Century Fox, Inc.’s (FOXA - Free Report) Once Upon a Deadpool and Paramount Pictures, a subsidiary of Viacom, Inc.’s Bumblebee, all release in December.

Disney Leads the Race

Disney once again is leading the race this year. The three top-earning films — Marvel’s Black Panther (700 million), Avengers: Infinity War ($678.8 million) and Incredibles 2 ($608.6 million) — all come from Disney’s stable. Jurassic World: Fallen Kingdom by Universal Pictures, owned by Comcast Corporation (CMCSA - Free Report) , holds the fourth spot, raking in $416.8 million, while Fox’s Deadpool 2 holds the fifth spot, grossing $318.5 million.

The U.S. box office witnessed one of its worst times in decades in 2017 and analysts had started penning obituaries. Interestingly, franchise films have once again played a major role in driving box office revenues this year. Given this scenario, Disney certainly has an edge over its rivals. Also, Disney, which is set to acquire Fox, commands 27% of the domestic market share, $1 billion ahead of its closest rival Universal.

At the same time, it also proves that the appeal for theatrical movie-viewing experience hasn’t faded at a time when streaming giants like Netflix, Inc. (NFLX - Free Report) and Amazon.com, Inc. (AMZN - Free Report) are giving film studios tough competition. Sony has a Zacks Rank #2 (Buy), while Disney, Fox, Viacom, Netflix, Amazon, AT&T and Comcast each carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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