Enter multiple symbols separated by commas

High Gasoline Prices Boost Movie Profit, Says CEO

Pirates of Caribbean 3
Stephen Vaughan
Pirates of Caribbean 3

The summer movie season kicks off with Walt Disney’s Pirates of the Caribbean: At World’s End. Disney’s third installment of Pirates comes after box office records were recently set by sequels to DreamWorks Animation SKG's Shrek and Sony's Spider-Man. David Brain, CEO of Entertainment Properties Trust, joined CNBC’s Erin Burnett on “Squawk on the Street” to explain how he’s profiting from the big-screen blockbusters.

Entertainment Properties develops and acquires entertainment properties, including movie theaters. While they did see a pullback due to high gasoline prices last summer, Brain says that this summer, people are more accustomed to the price of gasoline -- so they will spend more money on shorter trips to entertainment destinations, rather than long-distance vacations.

“While discretionary money is more scarce, at the same time people are willing to treat themselves to these types of outings, as opposed to the large income indulgences,” said Brain.

Brain is not worried about video on-demand and simultaneous release, which would allow the viewer to watch a new release from his or her own living room. “The sleeper that no one talks about is the price points are $30 to $50 for those immediate releases, so it makes going to the theater look like a bargain,” said Brain.


Contact Squawk on the Street

  • Carl Quintanilla

    Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs

    Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • David Faber

    “Squawk on the Street” Co-Anchor

  • Rick Santelli

    Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.