We do have a bad economy and the middle class is poorer than they have been since the 70's. Even during the Great Depression they had theaters showing films.
The really big movies will still be really big, the medium and smaller flicks will hurt more, except the occasional hit. People are spending less on entertainment, it doesn't mean they are spending nothing.
Yes. More tickets were sold as a percentage of the american population during the Great Depression than at any other time in movie history.
But I disagree with you regarding smaller films getting squeezed out by the economy or alleged shrinking box office. It simply doesn’t work that way. If audiences want to see a movie, they go see it — they don’t care if it’s “big” (large budget, robots, dinosaurs) or not. The only “squeezing out” of singles and doubles, small films, is done by studios, who chase tentpoles like “Transformers” because if one works, you’re done for the year and your job is safe. Smaller films are a lot more work to position for success.
But audiences have proven over and over they’ll go if you give them something to go to not aimed at 12 year olds. All the data isn’t in yet, but I strongly suspect the most profitable film this year in the U.S. will turn out to be “Grand Budapest Hotel,” a small movie that cost five bucks to make but played and played and played, all summer. Just now on Netflix.