Don’t call it a comeback! Amid the COVID-19 pandemic, certain markets will see expansions and others will see contractions. We already see contraction and a reduction in economic activity in our service industries. One unique market that is seeing an expansion, or increase in economic activity, are Drive-In Movie Theaters. The Los Angeles Times reports, some of the 305 drive-in movie theaters in the United States are seeing a surge in sales. The Paramount Drive-in (in Paramount, CA) reported that their sales have at least doubled, and demand is at an all-time high.
As we combat COVID-19, the Center for Disease Control strongly suggests that we stay 6 feet apart from others. As the virus is spread mainly through person-to-person, the issue arises when many who have contracted COVID-19 show no symptoms. Therefore, governmental authorities all over the nation have required that traditional movie theaters close temporarily. As a result, CNBC reports, the National Association of Theater Owners is asking the federal government for relief measures for its 150,000 movie theater workers. However, in several areas, governmental closures have not impacted drive-in theaters. This form of entertainment allows families to gather safely and still maintain social distancing, for the time being. According to the Los Angeles Times, “owners who are keeping their facilities open said that seeing a movie at a drive-in can require little to no human contact, largely because patrons are, of course, confined to their cars during the showing.”
The LA Times goes on to report that it is “a rare moment in the spotlight for the drive-in business, which has declined over the last two decades,” noting that “in 1958, there were 4,063 drive-in screens across the country” compared to just 305 drive-in theaters with a total of 549 screens today.
Sources: “Amid coronavirus outbreak, drive-in theaters unexpectedly find their moment” by Daniel Miller, Staff Writer at the Los Angeles Times; “Movie theater owners need help too, request bailout to keep industry afloat” by Sarah Whitten, CNBC.
Discussion Questions:
- Should the government provide a bailout to the National Association of Theater Owners? Why or why not?
- Why do you suppose the Drive-in Movie Industry has declined so drastically from its peak of 4,063 in 1958 to 305 in 2020? Explain.