Online Services Rain On Cinemas' Parade - Netflix (NASDAQ:NFLX)

As long as online video streaming services like

Netflix, Inc.NFLX

and HBO Go are around, it's no surprise that the number of moviegoers in the U.S. and Canada is falling.

Though last year's top grossing films broke box office records, the decline in North American moviegoers was still prevalent. For instance, "Transformers: Age of Extinction" by

Viacom Inc.

VIAB

Paramount Pictures crossed the $1 billion mark in terms of box office sales, while "The Hunger Games: Mockingjay Part 1" from

Lions Gate Entertainment Corp. (USA)LGF

scored the year's biggest opening domestic weekend with $123 million.

Film Fans' Demographics

The Wall Street Journal

reported

that though 18 - 24 year olds go to the movies more often than other age groups do, they too are decreasing their filmgoing frequency.

"In the U.S. and Canada, [18-24 year olds] saw 6.2 movies on average in 2014, down from 6.9 in 2013 and 7.8 in 2012. Meanwhile, those aged 25 to 39 saw 3.7 movies last year, down from 4.6 and five, respectively, in the prior two years," reported the Wall Street Journal.

Decline Causes

The reason for the decline can be attributed to increased ticket prices compared to the unlimited number of movies and TV shows people can watch online for a much more affordable amount. Netflix costs less than $10 a month, while HBO Go costs about $15.

Additionally, a lot of families or friends living together all share and split costs for the services mentioned above, making them even more convenient and wallet-friendly.

Market News and Data brought to you by Benzinga APIs

Posted In: News Opinion HBO Go Paramount Pictures

Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!