We don’t know the world

A few years ago I saw a fantastic talk from Hans Rosling about the world and statistics. Okay, I probably lost a few people by implying statistics are fantastic, and now I’ll lose some more by saying statistics ARE fantastic. Unfortunately, Hans is no longer with us, but his son and daughter-in-law – Ola and Anna – are continuing his work with Gap Minder.

Recently they released the results of their 2017 survey of world knowledge. After looking at the results they decided to call it the Misconception Study.* You’ll see why.

That’s right, less than chance. People really don’t know that much about the world.


Do you think you could do better? Well, find out! Take the 2018 quiz here. Of course, this is the part where I say that I passed the test. Humble-brag. But in fairness, as I’ve already mentioned, I’ve been following Gap Minder and I like statistics.

Could you pass the test?

*They probably called it that prior, but I’m making a point here, dammit!


Can you name a book?


Sounds like a simple challenge, right? Name a book, any book at all.

In the long tradition of asking Americans general knowledge questions on the street and filming their glorious ignorance, I present this video from Jimmy Kimmel.

Before we all laugh and point at the Americans and insult their intelligence, let’s remember that you could do this just about anywhere. Although, Americans do make this stuff easy at times. I’ve previously discussed the reading figures for the US, UK, and Australia. I’m sure those numbers are at least in the same ballpark as other countries, if not outright representative.

Wait, why guess when I can actually use the wonders of the greatest information resource in human history to look that up? Why have an unfounded opinion that I then rant about in indignant outrage, arrogantly assuming I’m right and belittling anyone who does bother to look up the data? To the research!

Let’s start with the data that the above video was citing from Pew Research.


As we can see, the 24% figure is showing that older, poorer, less educated, men (just), and Hispanics read less in the USA. This isn’t a new conclusion, as data from Pew in 2016 shows. The conclusion around the number who don’t read is also similar to the 2016 results of 26% not having read a book in the last 12 months. I’m not sure you can interpret much change over time in the number of people reading, but numbers might be slowly decreasing (although, look at the uptick in audiobooks as that format has come down in price).


Now we can look at how the USA sits in terms of reading. I’ve previously discussed how Aussies spend roughly 23 minutes per day reading (ABS figures), or an hour a day if you believe the Australian Arts Council report (I suggested there was possible survey bias in that figure). Below you can see that the NOP World Culture Score puts Australia at 6 hours 18 minutes – which I think makes this an “ALL-YOU bench-press” set of numbers.

Source: Statista

This chart suggests that the USA is probably typical for English speaking countries, but that many other countries read far more on a weekly basis in terms of hours. Unless reading is code for something else in non-English speaking countries. Maybe they thought they were being asked about how many hours they spent having sex per week.

If we then look at the countries and how frequently they read books you can see in the chart below that they were afraid to include the bars for “didn’t read a book”. The high end has only 14% of Chinese people not reading a book, whilst the low end has the Dutch at 43% not reading (USA comes in at 29%, UK 28%, Australia 38% – I demand a recount!!).*

Screen Shot 2018-05-25 at 7.50.23 pm
Source: Statista

How about the number of books people read, or at least what they claim once they round up?

Source: Eurostat
Screen Shot 2017-10-08 at 6.24.23 PM

What this all shows is that there are plenty of countries where you could ask ten people on the street to name a book and have one or two of them fail. You could ask those ten people what book were they reading today and only three of them could. Isn’t that sad? I reckon people would really enjoy reading if they made time for it. I’ve commented before on why I think people don’t read, suggesting that they don’t because they get told to read literature when they actually enjoy thrillers, sci-fi, and romance.

Maybe it is time to change that before someone sticks a camera and microphone in our faces.

*Be careful with my assumption here. Depending on how the question was asked and any other unreported categories, I may be very wrong in assuming the unreported numbers are non-readers.

A Book a Day: Six health benefits of reading


Penguin Australia recently published an article suggesting reading was awesome for your health. Previously I have posted science-backed articles on the benefits of reading (1, 2), so more science telling us that readers are awesome never goes astray. Although, as much as I love some good old confirmation bias, I can’t just share that article without some commentary from the further reading. I mean, the article title is a play on An apple a day keeps the doctor away… that can’t pass without some mockery.

Reading can provide hours of entertainment and pleasure, impart knowledge, expand vocabulary and give insight into unknown experiences. Additionally, research has shown that it has a variety of physical, mental and emotional health benefits. If you need another excuse to pick up a book, here are six ways reading can benefit your health.

And if those six reasons don’t encourage you to pick up a book, then think of them as six ways you’ll be superior to other people.

Improve brain function

Neuroscientists at Emory University in America conducted a study and discovered that reading a novel can improve brain function on a variety of levels. The study showed that when we read and imagine the settings, sounds, smells and tastes described on the page, the areas within the brain that process these experiences in real life are activated, creating new neural pathways.So next time you’re indulging in an armchair adventure with a great book, you could technically claim you’re working out – your brain, that is.

This study was rather small, consisting of 21 university aged participants who had 19 days of baseline brain scans before 9 days of scans as they read Robert Harris’ Pompeii novel. Warning: they had no null group in this study, only the baseline comparison, so any conclusions drawn should be done next to a salt shaker. It does, however, draw similar conclusions to previous research I’ve discussed.

Obviously, stimulating the brain by engaging with a story is going to light up parts of the brain, but there is the implication that using our brains in this way will strengthen pathways. Calling it a workout for the brain is probably a stretch because it isn’t like our brain sits around doing nothing the rest of the day. But for me, the more interesting thing is the shared response among participants. It proves Steven King’s adage true about writing being a form of telepathy.

The big unanswered questions here are how does this compare to any other shared activity, and how does it compare to other similar activities. I’d bet crypto money – always best to keep bets symbolic – that any other activities would see similar responses.

Increase longevity and brain health in old age

Researchers at Yale University School of Public Health found that, ‘reading books tends to involve two cognitive processes that could create a survival advantage.’ According to their results ‘a 20% reduction in mortality was observed for those who read books, compared to those who did not read books.’And the longer you live, the more time you have to get through your to-be-read pile.

This study nags at my skeptic-sense. Nothing immediately jumps out and screams “This study is nonsense, don’t believe it!” but I can’t help but feel like it is. They sampled 3,635 people in the USA and compared readers to non-readers for longevity. Don’t worry, they factored in stuff like age, sex, race, education, comorbidities, self-rated health, wealth, marital status, and depression. But I’m still left with the nagging sound of my statistics lecturer telling the class that correlation doesn’t equal causation. See this example about storks and babies!

My suspicion is that there is something unmeasured that is confounded with reading that is the actual causal factor. This factor is probably also available from other activities, thus other activities will also increase your lifespan. Just my suspicion. Happy to be proven wrong.

Reduce tension levels

A 2009 study by the University of Sussex found that reading for just six minutes can reduce tension levels by up to 68 per cent.3 Researchers studied a group of volunteers – raising their tension levels and heart rate through a range of tests and exercises – before they were then tested with a variety of traditional methods of relaxation. Reading was the most effective method according to cognitive neuropsychologist Dr David Lewis. The volunteers only needed to read silently for six minutes to ease tension in the muscles and slow down their heart rate. If ongoing stress is an issue take a look at these simple stress management tips.

This claim is hard to pin down. It’s not like other studies haven’t shown reading (and yoga, humour, cognitive, behavioural, and mindfulness) have impacts upon stress levels. But unlike the linked studies, Lewis’ study hasn’t been published. The source in the Canadian National Reading Campaign links to The Reading Agency in the UK which cites an article in The Telegraph. Now, I suspect that this was probably one of those studies done for a report that no one has read because the only publicly available material on it is the press release. But it could also be rubbish research that didn’t get published because of claims like 300% and 700% better than other activities sound like made-up numbers.*

Increase emotional intelligence & empathy

Numerous studies have shown that reading books can promote social perception and emotional intelligence.2 Studies have also found that when a person is reading fiction, they showed greater ability to empathize. Similar to the visualization of muscle memory in sports, reading fiction helps the reader use their imagination to put themselves in someone else’s shoes.For books that’ll test your empathy, push your moral boundaries and ask ‘what would you do?’, take a look at this collection.

I don’t know why they referenced the same two studies again as they didn’t look directly at the issue of emotional intelligence and empathy. I’ve seen better studies, such as the one I mentioned in my piece on Literary Fiction In Crisis, and this one that literary people like to wave around because they can’t afford a Ferrari. So while this appears to be true enough, it is worth understanding why (read this one and see how lots of books have differing levels of literary merit).

Improve sleep

While some scientists believe reading before bed can inhibit sleep due to heightened brain activity, researchers at Mayo Clinic recommend reading as part of a relaxing bedtime ritual that can help promote sound sleep.4 This, coupled with the tension-relieving benefits of reading, can vastly improve both the quality and quantity of your sleep. You may want to stay away from page-turning crime and thriller novels though – you could be up all night…

Clearly these people don’t read thrillers. Am I right people? Huh?

Anyway, it is worth reading what the Mayo Clinic actually said:

Good sleep habits can help prevent insomnia and promote sound sleep:
Create a relaxing bedtime ritual, such as taking a warm bath, reading or listening to soft music.

That’s right, it wasn’t that reading helped you sleep, it was that it could be part of a relaxing bedtime ritual. Could. They didn’t recommend it so much as used it as an example of a relaxing activity that wasn’t playing on the computer or watching TV (i.e. screen based). So this is overstating things a bit.

Improve overall wellbeing

Researchers at Italy’s University of Turin published an analysis of ten studies of bibliotherapy: the use of books as therapy in the treatment of mental or psychological disorders. Their findings showed that participants in six of the studies saw significant improvements in their overall wellbeing for up to three years after partaking in a course of reading therapy.5 With that in mind, here are some books to help you achieve mindfulness and find happiness in the everyday.

Worth reading the actual link on this one. In summarising they have made this sound like wellbeing benefits were being measured in most of the studies out to three years when only one of the ten studies did. This could just be me nitpicking, but it does overstate the results in my opinion.

As with many of my posts breaking down a sciency article, you can see that at best the claims are overstated, or as I’ve summed up previously I think you’ll find it is more complicated than that. And as much as I like reading – and I’m sure many of you reading this do as well – too often this sort of science isn’t actually helpful.

Sure, reading is awesome, but if you’re going to stick someone in an MRI to prove it, how about comparing it to other activities and including a nill treatment. That’s called good science! Readers don’t actually need some scientist to tell them their hobby is awesome (or maybe they do), and they especially don’t need overstated claims about that science in articles, it goes astray.

* Seriously, check out this “abstract” quote:

Abstract: Tested against other forms of relaxation, reading was proved 68% better at reducing stress levels than listening to music; 100% more effective than drinking a cup of tea, 300% better than going for a walk and 700% more than playing video games. Reading for as little as 6 minutes is sufficient to reduce stress levels by 60%, slowing heart beat, easing muscle tension and altering the state of mind. ‘Galaxy Commissioned Stress Research’, Mindlab International, Sussex University (2009)

1 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3868356/#s007title
3 Dr. David Lewis “Galaxy Stress Research,” Mindlab International, Sussex University (2009)
4 https://www.mayoclinic.org/diseases-conditions/insomnia/symptoms-causes/syc-20355167
5 https://academic.oup.com/eurpub/article/27/suppl_3/ckx186.244/4555858



Is sport king in Australia?

Sports Supporters: Alcohol Compulsory Accessory
Sports Supporters: Alcohol Compulsory Accessory

With pork-barrelling season in full swing, we will be seeing plenty of politicians hitching their wagons to prominent sports and sporting teams. The proclamations that sports are True-blue, dinky-di, Aussie will come to win over voters, with a little somethin’ somethin’ in the budget to sweeten the deal. Because sport is king in Australia, right?

Aussies are routinely described as sports mad, sports addicts, and that we love watching and playing sports in sporty sports ways. But how many of us actually play sports? How many of us actually watch sports? Given that you could describe weekly matches of football as repeats of the same teams doing the same thing for months on end annually, it is worth taking a look at a few of our assumptions about the claims.

Let’s start with a look at how many Aussies play “sports”. Inverted commas around sports? Yes, because when people say that 60% (11.1 million) of Aussies play sports – down 5% compared to 2 years previous – what they actually mean is that we’re classifying walking and generally not sitting on the couch watching TV as sport. Let’s make it fairer on sports and subtract the walkers from being classified as sport participants. And let’s not succumb to temptation and call golf just more walking with intermittent cursing. That means that our 11.7 million “sports” participants is suddenly 7.5 million, which is 41.4% of the population (and falling with the ageing population). That figure sounds impressive until you realise that figure is participation of at least once in the past year and doesn’t account for the regularity of participation. How regularly someone is involved in sports is a much better indicator of our interest and love of sports. As opposed to accounting for that time you went to the gym because of a New Year’s resolution or because the doctor ordered you too out of concern for being dragged into an orbit around you at your next visit. The reality is that less than half of the population engage in regular (3 times per week on average) physical activity, with roughly a third of those people being gym junkies (NB: young men are more likely to play a sport, that drops with age and isn’t replaced with other activities, whilst women are more likely to be involved in non-organised sports and remain doing so).

The Top 20 most popular physical activities are dominated by fitness activities like the already mentioned walking, aerobics/fitness, swimming, cycling, and running. One of the big name sports, AFL, ranks 16th on the list behind yoga. When yoga beats football for popularity it must only be a matter of time before the PM declares it the most exciting sport. For those wondering where rugby is on the list, the rest of Australia says ‘hi’.

Screen Shot 2016-05-28 at 12.56.43 PM

Of course, this is only looking at sports. How does sports participation compare to other activities? Well, ABS figures show that we spend roughly 23 minutes a day reading, versus 21 minutes on sports and outdoor activities (NB: this varies between genders and age groups). The US figures show similar results with more time reading than playing sports, but they also spend less of their day on both activities. So at least we are still better read and fitter than Americans in the low bar metrics.

Obviously sports aren’t all about participation and most would regard themselves as avid armchair sportspeople. It could be argued that the best way to stay injury free in sports is to participate from the comfort of the couch in front of the TV at home. The other option is to attend a sporting stadium dressed in clothes made from random assortments of gaudy colours to cheer on a team who are wearing similar clothes but are less inebriated. Or would the most appealing option be to go to a movie, concert or theme park? The correct answer is that people would prefer to attend a movie (59%), a concert (40%), or a theme park (34%). Live Comedy (31%) was more popular than Football (30%), Cricket (29%) and Rugby (25%).

Screen Shot 2016-05-28 at 12.42.50 PM

Of course, someone is bound to point to spectator numbers for AFL, A-League, and NRL that look very impressive. With average match attendances in the tens of thousands, and millions annually, sports are clearly important.

Competition Total spectatorship Average match attendance Year Ref
A-League 1,887,206 13,480 2013–14 [108]
Australian Football League 6,975,137 33,696 2014 [109]
Big Bash League 823,858 23,539 2014–15 [96]
National Basketball League 574,813 5,132 2013–14 [96]
National Rugby League 3,060,531 15,940 2013 [110]
Super Rugby 773,940 19,348 2012 [111]

At a glance the figures look mildly impressive, but much like enhancement pouch underwear, things aren’t nearly as impressive when you look at the attendance figures in the cold light of day.

Even if we disregard the doubling up and totalling of attendance occurring in the stats, it is easy to see that even the most popular sport in Australia would rank behind visiting Botanic gardens, zoos and aquariums, and libraries. They aren’t even in the same ballpark as cinema attendance. But we can go deeper on the reading, library and cinema figures, even getting frequency statistics so we can tell the difference between the people doing something “at least once” versus people doing something regularly in the past year. 47.7% of people are reading a book weekly, 70% of library attendees (mostly women) visited at least 5 times in the past year, 65% of Australians are (computer) gamers, and 65% of Aussies go to the cinema an average of 6-7 times a year. And yet sport has a segment in news broadcasts whilst reading, gaming, and parks and zoos battle to get media coverage. Technically if we wanted to be fair then the sport segment would be cut to make way for movie news and a live cross to the local library.

What about the economy? How much are households spending on sports? That’s a great question and a great segue into a discussion of how trickle-down economics doesn’t work in sports either. I mean, funding sports that way when it hasn’t worked in the economy must be a no-brainer, right? [Insert low IQ athlete joke here] Or we could stay on topic and discuss the $4.4 billion sports and physical recreation spend by households annually. Let’s not complicate things by talking about the buying of stuff like footwear, swimming pools, and camper vans. Seriously, camping is in the sport spending category? Either way, $4.4 billion sounds like a lot of money, until you realise that gaming is a $3 billion industry, and that households spend $4.1 billion on literature and $4.7 billion on TV and film.

We allow governments to spend a lot of money on big sports and big sporting events. Think that hosting the Olympics will encourage people to play sports? Nope. Actually, seriously, nope. One report described this idea as nothing more than a “deeply entrenched storyline”, sort of like a fairy tale handed down from one Minister for Sport to the next. Part of the problem is that we buy this narrative hook, line, and sinker, such that the sports themselves (and surrounding data agencies) never really bother to keep statistics to prove the claims. But they make for great announcements and ribbon cutting events on the election campaign trail, so the myth keeps on keeping on.

Ultimately the argument isn’t that sports are unpopular or bad but rather that we spend an inordinate amount of time pretending we like them far more than the reality. And that is impacting our elected officials more than a chance to wear a high-viz vest at a press conference. Maybe it is time to rethink what media and funding we throw at sports, and perhaps consider a gaming segment on the news.

So this pork-barrelling season look forward to the announcement of a new multi-million dollar yoga stadium in a marginal electorate near you.

Update: Charlie Pickering and The Weekly team cover some similar points for the Grand Prix events in Australia.

NB: I haven’t covered sports injuries, particularly how over half a million Aussies have long term health conditions as a result of sport. Please see this report for more.

Further reading:

Australian Sport Injury Hospitalisations 2011-12

Down with Reading?

An interesting table of statistics – yes I am assuming statistics are interesting, why yes, I am a huge nerd – crossed my feed today. The table, presented below, shows the household expenditure breakdowns over time (1990-2009). The highlighted lines show the amounts spent on entertainment and reading.

US Bureau of Labor Statistics (with labour spelt incorrectly)
US Bureau of Labor Statistics (with labour spelt incorrectly)

For those of you who are blind or prefer reading my words rather than a table of numbers, the statistics show that since 1990 there has been a pretty steady increase in household expenditure on entertainment, but the amount spent on reading has been in steady decline. Clearly it is time to panic. Movies, TV and gaming have won. Time to give up reading and writing. No future in it.

Well, that would be the conclusion if you don’t go and look for the source data.

Now I am rather lazy, so I haven’t bothered to look up every year of data and tried to recreate the table. But what I have done is looked up the figures from a few of the years not included in the table: 2010, 20112012 and 2013. The spend on reading from those years is $100, $115, $109 (no 2013 data as yet) and entertainment spend of $2,504, $2,572, $2,605 and $2,482. Seems like that trend stopped, or something.

Actually, the trend has more to do with the household demographics and income than any change in book buying. Whilst in the early 2000’s there was a drop in reading for entertainment from ~0.4% of household expenditure to ~0.2%, this has been consistent since. So readers are still buying and reading books at roughly the same proportion as always.

And who are the readers? Well, from the demographics breakdown the readers tend to be middle-aged or older, higher income, educated households, or households without kids. Apparently having kids stops you reading, can’t think why. And clearly older and more affluent people are the ones who can afford the hardcover prices, or see the value in them, or just like having something on the bookshelf surrounding their money pile – rich people have money piles in their houses, right?

To me this doesn’t say reading is a dying industry, rather that there are groups being missed by the current industry. Of course I’m biased and probably daydreaming about a magical place where books hunt down DVDs for sport. The younger people tend to have less entertainment expenditure, with the average consumer spending 5% of their income on entertainment, whilst under 25s spend between 4 and 5%. Their book buying appears to have declined and is lower than the average consumer, at 0.14% (2012). This makes them a missed market (or possibly buying cheaper e-books). The other groups spending less on books are the less educated and lower income people, and again, not just in total expenditure but in the proportion of household expenditure.

Clearly these three groups could be reading just as much but instead of buying books they are borrowing them from friends or libraries, or they might be buying cheaper books. But something tells me this isn’t the case, what with the kids these days with their hippity hop music and haircuts. To my mind the fear that the market for books is shrinking, as suggested by the above table, is not borne out by the more recent data. We see more competition for entertainment dollars yet books don’t change that much ($150 to $110 over 22 years is 3 paperbacks in the US) suggesting that the problem is in who is reading. If reading is going to be only for richer, older and more educated people then we have a problem, especially if we aren’t creating the next generation of readers.

The decline of cinema

theater management

There is only really one thing I miss about living in the city and that is going to the cinema. Of course, I’d miss that even more if there were movies worth shelling out this month’s mortgage repayments to see. The idea of paying big bucks to sit in a seat that has probably been used for sex by strangers, eating snacks that have a 2000% markup, after forgetting your earplugs and going partially deaf, which is a blessing after the pre-movie ads, is just not that appealing. Now Australian cinemas have decided they aren’t charging movie goers enough money and have decided to blame an easy target to justify their cash grab.

Cinema executives have blamed piracy on the recent price rises of ticket prices in Australia. Because of course it is piracy that is to blame, and not the marginalising of the customer base with exorbitant pricing regimes. Nor could it possibly be that people have more alternate entertainment options, including waiting a few months to watch the latest “blockbuster” in their own home cinema. Nor could it be the rubbish that so many movie studios are turning out.

Let’s dissect this nonsense like the original reports in the media should have done. There are many factors at play in the decline of cinema. The first real problem is that there hasn’t really been a change in the proportion of the population that go to the cinema in 40 years, but the number of times per year they go has been steadily declining since the 90’s.





So rather than keeping audiences entertained regularly, audiences are clearly becoming more occasional customers. Underneath that general trend are some interesting changes in the demographics of cinema attendance. It is no secret that Hollywood movies are made for teenagers. Teens are a huge chunk of the cinema audience. But, the biggest change in the repeat attendees is in the teen market, which has been in steady general decline since the 70’s. Which part of the market is going to be most impacted by price rises? Go on: guess!





Another way to look at this is in the proportion of the population going to cinemas in the age demographics. Below you can see the 14-17 and 18-24 age groups are overrepresented as cinema goers, this starts to even out in the 25-34 group (also known as the settling down and going out less demographic), is at parity in the 35-49 group (also known as the parenthood has stolen my social life demographic), and people over 50 clearly don’t like all the loud noises.

OVER THE AGE OF 14, 2012


So while the proportion of the population that have been going to the cinema each year has been pretty steady across the entire population, it is the number of times people go that is making the difference, especially in that much coveted teen “I want to see explosions and car chases” market. (Interesting aside: when you look at the age group breakdowns you do see that the over 25 audience since the 70’s have generally increased in their likelihood to attend the cinema, but this has been static for most demographic groups since the mid 90’s.) To put some hard numbers on that difference in the number of times a teen goes to the cinema each year, in 1974 the 14-24 demographic averaged 16.4 visits to the cinema, in 2012 that had dropped to 6.6 visits.

Obviously there are a lot of changes in the marketplace that have occurred over this time. TV has expanded, cable TV is a thing now, home rental or ownership of movies is a thing (VHS succeeded by DVD, now being superseded by Streaming, which will probably be superseded by actors coming to your house to perform on demand), computer games have grown in leaps and bounds, the internet, all vying for our attention and wallets. Just look at the change in households with various alternatives to cinema (NB: the game consoles data doesn’t tell the full gaming story, see this for more about that market):

Graph: Proportion of households with computer, Internet, mobile phone, games console and DVD player. The following table provides the data.

I alluded to this above, but one big change has been the home cinema. Some people will remember a time when some cinema screens were actually not much bigger than the ones installed in many homes now. Sound systems have improved greatly over the crappy little speaker that was the drive-in experience. Now we have high quality TVs and projection units that rival anything you can get in a cinema complex, and these come with a pause function, easy access to food that doesn’t kill your wallet nor beat your heart with belly flab, and sound settings lower than jackhammer. Then you have all the other possible entertainment options available, suddenly the list of movies (not) to see just isn’t as appealing.

The one thing cinemas still have going for them is windowing. For the first few months after opening, there is no other (legal) way to watch the film, you have to watch it in the cinema or wait for the DVD release. Although it seems clear people are more willing to wait, let the dust settle after opening weekend, and figure out what is worth watching, whether that be at the cinema, on DVD, when it makes it to TV, or at all. And now I’m going to contradict myself and say that piracy proves people aren’t willing to wait for those other options, preferring simultaneous releases. Both arguments still point out that people just aren’t as interested in paying big(ger) bucks to see movies in the cinema. Of course movie studios and distributors don’t like that idea, since windowing is great for their bottom line, especially opening weekend.

Now the reason for the price rise could be something to do with this chart, showing that 21% of the market is in the highest income households. Cinemas are obviously betting that their price elasticity is low and will take the price increase in their stride. What this ignores is the age demographic data above, which shows a sizeable chunk of the audience may be from affluent households, but that doesn’t mean their teenage bank account is bulging with lots of cash.

Equivalised gross household income quintiles No. cinema-goers (‘000) Share of cinema-goers (%) Attendance rate (%)
Lowest quintile 1,010.6 9.7% 47.2%
Second quintile 1,305.6 12.5% 50.8%
Third quintile 1,879.1 18.0% 66.6%
Fourth quintile 2,106.4 20.2% 75.3%
Highest quintile 2,199.2 21.1% 80.0%
Unknown 1,930.5 18.5% 65.8%
Total 10,431.4 100% 65.2%

So we see that cinema audiences are becoming more occasional consumers, the trip to the movies is a special event, not a regular event. Teens are a big chunk of the cinema market and they aren’t the repeat customers they used to be. This is what happens when you price customers out of the market, you bite the hand that feeds. You also have them turn to other entertainment mediums. Blaming piracy for what is demonstrably a long term trend is a pretty big reach. I’d also argue that piracy is a reaction to consumer demand for lower pricing and simultaneous releasing, so that audiences can consume the movies in the way they want to, not the way they are being forced to, at a price that is commensurate with the utility received (e.g. people pay as much or more for a DVD – less if you consider it a couple or family purchase). If cinemas have anyone to blame it is themselves and their suppliers (distributors and studios). Using piracy to justify a price increase is clearly unfounded.

Of course, what needs to be mentioned is that films are essentially a loss leader for cinemas so that they can make money selling snacks and beverages. This ticket price increase is probably driven through the supply chain rather than by the cinemas themselves. But this also shows how cinemas have to adapt in order to survive. Going out to a movie is an experience. People are more willing to pay for experiences rather than stuff (DVDs). So if cinemas can get serious about screening experience at a fair price, they might get the audience back, or at least stop the decline.

Sources: http://www.screenaustralia.gov.au/research/statistics/audiences.aspx