Lessons from the summer: Cracks in Hollywood's box office armor

'The Conjuring: Last Rites' gave U.S. theaters a needed jolt recently, but a weak season shows the film industry still has several challenges to overcome

- By Ryan Faughnder

Los Angeles Times photo illustration; Disney; Warner Bros. Pictures

“The Conjuring: Last Rites” gave movie theaters a needed jolt this month with a much better than expected domestic opening of $84 million and a global take of $194 million, a franchise best and the latest success for Warner Bros. and its New Line Cinema banner.

But it will take more than supernatural scares to ease Hollywood’s jitters after a weak summer movie season that exposed more challenges facing the traditional film industry.

Ticket sales fell slightly from last year’s summer season, which for the movie business spans from the first weekend of May through Labor Day. Movies grossed $3.67 billion in the U.S. and Canada this summer, down 0.2% from the same period in 2024, according to data from Comscore. More importantly, it’s still down from the pre-pandemic norm of about $4 billion, a disappointing result given that summer typically accounts for about 40% of annual grosses.

If you account for inflation, it’s even worse. Adjusting for today’s dollars, summer revenue was down 34% from 2019, meaning theater attendance was weaker than the topline revenue stats suggest. With actual attendance still impaired compared with the days before COVID-19, there’s a growing sense that the industry’s fears have come true: Audience habits have changed, and they're not going back.