SIC 7833
DRIVE-IN MOTION PICTURE THEATERS



This category covers commercially operated theaters, commonly known as drive-ins, primarily engaged in the outdoor exhibition of motion pictures.

NAICS Code(s)

512132 (Drive-In Motion Picture Theaters)

Industry Snapshot

The drive-in theater industry is a phenomenon that peaked in the 1950s, then declined precipitously in the 1970s and 1980s. According to the Motion Picture Producers Association (MPPA), there were 847 drive-in theaters, or "ozoners," as they were sometimes called, in the United States in 1996. This industry has greatly dwindled from its peak in 1952 when it surpassed the traditional theater industry in attendance. The number of drive-in theaters has, however, remained stable since the late 1980s. The affordability and convenience of an evening at a drive-in, the desire to get out of the house during pleasant weather, plus nostalgia for the 1950s, which many drive-ins are playing up, has kept the drive-in from total extinction. "A trip to the drive-in is a movie-going paradox. It's more social than any indoor theater (where you're not even allowed to talk, much less walk your dog or throw a Frisbee with the guy down the row) … Likewise, drive-ins combine the best of commercial-theater scale with home-theater indulgence: No home entertainment system gives you a 2,600-square foot screen, and in no multiplex can you eat, smoke and drink yourself silly," said reporter Steve Hendrix in the Washington Post.

In 1997, the industry was estimated to employ 1,996 people. Total receipts were $110.3 million.

Organization and Structure

The drive-in theater industry was comprised largely of independent operators and a few regional chains. During the late 1940s, chains owned 31.9 percent of establishments and controlled 39.8 percent of car capacity. Some of the larger chains included General Cinema Corporation, which ranked as a top indoor and Park-In Theatres, Inc., both in the eastern United States; Pacific Drive-In Theaters; and Paramount-Richards Theatres, Inc., in the southern United States.

Since the drive-in industry was considered a competitor of the traditional theater industry for many years, their owners were not welcomed into such associations as Theatre Owners of America or Allied States Association of Motion Picture Exhibitors. However, since many drive-in operators were so successful in their early years, they did not perceive a need for professional affiliation or the information-sharing and lobbying services that such an association could provide until the industry reached its demise.

Financial Structure. Like traditional theaters, drive-in theaters derived profits from two primary activities: admission fees and concessions. Most drive-ins were seasonal operations open an average of eight months each year. During their most prosperous years, 88 percent of driveins charged admission on a per-adult basis, admitting children for free. As the industry declined in the 1980s, operators desperate for patronage switched to a per-car admission. During the 1950s, annual profits ranged from 15 percent to 30 percent of invested capital — a very high margin compared to indoor theaters, which averaged about 10 percent at the time. Concessions usually contributed 35 percent to 40 percent of a drive-in's gross receipts.

Drive-ins required a relatively high initial investment. It is estimated that the first drive-in theater cost about $30,000 to build. After World War II when the industry reached its zenith, the average initial investment was about $100,000, not including the land. Although high, this capital outlay was only about 30 percent of the average cost of an indoor theater at the time.

Regular expenses included film rental, energy consumption for projection and food preparation, payroll, and real estate. Payroll typically constituted about 28 percent of a drive-in's operating expenses.

Background and Development

The concept of the drive-in theater was first patented and introduced by Richard Milton Hollingshead, Jr. in 1933. Known as "the father of the drive-in," Hollingshead opened the first establishment in Camden, New Jersey, in June of that year. The "Automobile Movie Theatre" featured rows of inclines on which patrons would park their cars; a large, central screen; three loudspeakers atop the screen to project the movie's soundtrack; and a barricade around the perimeter of the lot to prevent would-be viewers from sneaking in.

Hollingshead had trouble enforcing his patent, and he watched his idea spread unauthorized to Pennsylvania, Texas, California, Massachusetts, Ohio, Rhode Island, Florida, and Michigan by the end of the decade. Many of the new businesses were unlicensed, and Hollingshead was obligated to spend time and money trying to enforce his patent. He eventually petitioned the U.S. Supreme Court in an attempt to uphold his patent, but in 1949 it was declared invalid on the basis that it "lacked invention."

The industry as a whole faced other problems that prevented it from catching on until the late 1940s and early 1950s. Some were technical: poor sound quality and faulty synchronization of image and soundtrack along with distortion of the picture at some vantage points hampered the viewing experience. In addition, neighbors of these early drive-ins protested the loud broadcast of movie soundtracks throughout the evening hours. Other obstacles were rooted in Hollywood studio politics. Many big-budget movie producers, who controlled production and distribution of films throughout the 1940s, refused to circulate their best movies to drive-ins.

These problems were partly alleviated in the late 1930s, when the major Hollywood studios began to make their films available, in later runs, to drive-ins. Improvements in projection technology permitted patrons in drive-ins with a 1,000-car capacity to see a movie more clearly. And the development of individually-controlled, in-car speakers solved the sound problem in 1941. But just as the drive-in industry was poised to erupt into a full-fledged craze, World War II's gasoline rationing, rubber shortages, and building restrictions prohibiting "unnecessary construction" postponed the movement.

In 1942, there were 95 drive-ins in 27 states. The average lot held 400 cars, took up seven or eight acres, and had one screen. The number of establishments remained relatively constant until the end of the war when it exploded. By the end of the 1940s, almost three new drive-ins were opening daily.

Kerry Seagrave, author of Drive-in Theaters: A History from Their Inception in 1933, attributed the craze to two social factors: America's love affair with the automobile and the postwar baby boom. Kerry noted that "ozoners were an ideal place for a young family with children — no baby-sitter needed, no parking problems, dress as you like, and (they provided) relatively cheap entertainment." In keeping with the family orientation of drive-ins, free admission for children under 12, playgrounds, and even bottle warmers soon became industry standards.

The industry reached an apex in August 1952, when the average weekly attendance at outdoor theaters surpassed that of traditional theaters by 1.3 million. By 1955, there were more than 3,700 drive-in theaters in the United States. That number peaked in 1958, when more than 4,000 drive-ins brought in $230.42 million. Despite the technological limitations that dictated a 1,300-car maximum capacity, some operators built 2,500-car theaters to capitalize on the trend. During this peak decade, it did not seem to matter whether the patron could see the film clearly; most of the films shown were still the "table scraps" of the indoor theater industry anyway.

Drive-ins lured return patrons by offering several added attractions. A ticket might entitle the bearer to a free door prize for each child; or a theater might have a live band, dance troupe, or acrobatic act before the show. Some venues offered free milk and diapers for babies, a children's playground, or even a miniature golf and a driving range.

Although many operators of indoor movie theaters blamed the precipitous decline in their attendance figures during the 1950s in part on drive-ins, Seagrave maintained that drive-ins kept the movie industry afloat during the 1950s. But, growth of the industry began to stagnate by the end of the decade. The shakeout between 1958 and 1963, when the number of drive-ins decreased from 4,063 to 3,502, probably eliminated the most inefficient operators from the industry. The industry declined significantly in the early 1960s then leveled off until the late 1970s. Another steady decline began in the late 1970s and continued into the early 1990s as the drive-in theater neared extinction. This decline occurred for a variety of societal and economic reasons.

Family patronage, which Seagrave called "the backbone of the drive-in," dropped off in the 1960s and 1970s. Some drive-in playgrounds were eliminated due to the fear of lawsuits resulting from possible injuries. Once the sidelight attractions were eliminated, all drive-ins had left to offer was the film itself, which was still too often second-run or second-rate. Also, the content of films began to change significantly in the late 1960s, hastened by the elimination of the Production Code in 1966, which had restricted the use of potentially offensive material. The introduction of nudity, profanity, excessive violence, and explicit sexuality made going to films less likely to be a regular family activity.

By the 1980s, cable television and VCRs had firmly supplanted the economy and convenience of drive-ins. Rising land values further eroded the viability of drive-ins: it became more cost effective to develop the land, rather than try to maintain outdoor exhibitions for a few months of the year.

Seagrave summarized the demise of the industry in his 1993 book: "Drive-ins today sit poised on the edge of extinction. The last handful may be around yet for decades. A few may be kept alive as sort of living museums, perhaps subsidized. But they are finished as a part of the American landscape. New ones will never be built."

Bob Wagner, owner of the Bel-Air Drive-In Theater in Churchville, Maryland, agrees. In 1996, he told the Washington Post, "We'll be around for awhile longer, I think. I don't see anybody ever building a new drive-in. But we'll keep this one going by doing whatever we can think of."

No longer venues for low budget B-pictures and second runs of top level films, drive-ins offer the same features that are shown at indoor theaters. As with indoor theaters, the amount of business done by drive-ins depends upon the general popularity of film releases. In the summer of 1996, some drive-ins were filled to capacity during showings of the science fiction blockbuster Independence Day.

In addition to being dependent on the appeal of current films, a drive-in's business depends on good weather. "Weather is the key. On a good Friday or Saturday we can get 1,500 to 2,000 people in here. But even the prediction of rain keeps people away," Memphis drive-in owner Larry Pankey explained to the Memphis Commercial Appeal.

A new problem for drive-ins is the changing style of automobiles. Designed for the low and wide sedans that were prevalent in the 1950s, drive-ins must contend with vans, trucks, jeeps, and recreational vehicles which can block the view of customers in regular cars. Relegating high and bulky vehicles to the back row is not always possible due to the increasing number of them.

Current Conditions

There was only a slight decline in operating drive-in movie theaters in the United States from 1996-98: down from 847 to less than 800 (although one statistic places the number at 530). Those that have weathered the decline stand to do well: nostalgia and pseudo-nostalgia are at all-time highs. The Drive-In Theater Fanatic Fan Club (www.driveintheater.com/fanclub) and the American Drive-In Movie Theatre (www.americandrivein.com) represent two groups of followers helping to stave off extinction. The status of the remaining drive-ins is expected to remain at a plateau for several years.

In 1998, America's oldest remaining drive-in movie theater celebrated its 65th anniversary. Shankweiler's Drive-In, in Orefield, Pennsylvania, is open from April to September. Although few drive-ins turn a profit, many are able to maintain business by appealing to family audiences. By combining playground equipment, "diners" serving old-fashioned hamburgers, and programs featuring general audience films, many drive-in owners hope to carry a fleeting image of Americana far into the millennium.

America and the World

Unlike the traditional movie theater, the drive-in never amounted to more than a novelty in other countries. Until the 1990s, only Canada and Australia came close to rivaling America's drive-in industry. As Seagrave noted, this was because most foreign countries did not have the prerequisites to establish such an industry: high personal income; cheap, vacant, and accessible land; ubiquitous automobile ownership; and inexpensive gasoline.

One of the only countries that possessed these requirements, however, was Japan. As the U.S. industry declined, almost 20 drive-ins were built in Japan from 1983-93. A country renowned for its expensive real estate, Japan built low-budget drive-ins that used parking lots and other locations that were not used at night by simply installing a screen, a projector, and an office. Rather than being a product of a booming economy like their U.S. counterparts, Japanese drive-ins were moneymaking ventures spawned by the country's worst recession since World War II.

Further Reading

Atkin, Ross. "Drive-In Movies: Featuring Families." Christian Science Monitor, 5 August 1998, B1.

Hendrix, Steve. "Fields of Screens." Washington Post, 26 July 1996, N6.

Lucas, John. "Back to the Drive-Ins." Memphis Commercial Appeal, 14 June 1996, 1C.

Palmer, Joel. "More Than a Movie Theater." Des Moines Business Record, 13 July 1998, 30.

Seagrave, Kerry. Drive-In Theaters: A History from Their Inception in 1933. Jefferson, N.C.: McFarland & Company, Inc., 1992.

"The Lost World of Drive-Ins." Time, 26 May 1997, 94.



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