There is no better way to survive a period of economic woe than to grab a ticket to the movies.

This was proven in the 1930s; it has been proven once again in the 21st century. Since the Depression, escapism has been the one factor that made the entertainment industry a sole survivor.

During the Depression, people shelled a quarter or less to buy a whole day refuge in the movie theater from the troubles of a cash-strapped economy. In today’s age, it requires a meager $10 to fund the same escape.

Film historian and critic Leonard Maltin explains that despite the heavy budget cuts people make when in a financial bind, there is always just enough money for the movies.

A possible explanation for this is that the movies are a cheap therapy and diversion during troubled days: “To go into a darkened room where nobody can find you for two hours is great therapy, particularly when times are bad,” explains Dan Glickman, head of the Motion Picture Association of America.

Moviemaking profits are at an all-time high domestically and globally. Despite the blows of the recession, rapid unemployment and high inflation, box office earnings rose by 13.8% this year, approaching almost $10 million in U.S. ticket sales alone.

The recession has also jumpstarted new growth opportunities as studios are seeking for cost-cutting measures. This has put Hollywood in a flurry of deal making. Viacom Inc’s Paramount Studios is negotiating with News Corp’s Fox and Sony Corp’s Sony Pictures to integrate their DVD manufacturing and distribution units. Time Warner Inc is contemplating on a deal with DreamWorks Animation SKG, while Sony Pictures and Metro-Goldwyn-Mayer could be up for sale soon.

Another big gainer is Imax Corp, producer of gigantic 2D and 3D theater screens, which registered a growth of 43% from last year.

In a round table discussion of more than a dozen prominent American CEOs last November 2008, it became eminent that the recession has made a clean sweep through even the top tier companies.

Fred Smith of FedEx was one of the most vocal about how big a reality this crisis is. John Byrne, BusinessWeek.com’s Editor-in-chief, asked Smith how tight of a knot the economy is in right now. As the FedEx CEO replied, considering his extensive 35 years in the industry, this would considerably be the worst he has seen.

Smith goes on to describe how traffic across the Pacific has been crashing for quite a while already. All retailers had to do a double take as well, he points out. This claim is proven by how even some of FedEx’s high-end retailers experienced a sales downturn by 25%. The only positive spark in the situation is that with low inventory levels, the turn-around when it does happen will be transpire and conclude quickly.

The question of whether FedEx will be able to ride the recession has been raised by many. But as to asking who will lead them through the crisis, there has never been any doubt. Frederick W. Smith, founder and CEO of Federal Express, continues to serve as the beacon of light for his entire corporation. Ever since its establishment on June 18, 1971, the company and its leader have become synonymous with service. This is made evident by its consistent ranking as one of the top 10 on Fortune Magazine’s World’s Most Admired Companies and on the exclusive America’s Most Admired Companies list, year after year. His business acumen, resiliency and indomitable spirit are captured best in one of the most well-known anecdotes in business history.

When Smith reportedly turned in his paper that presented the business idea of FedEx, his Yale professor gave him a “C” because of feasibility issues. Undeterred, Smith went on to build his empire after his service with the U.S. Marine Corps. FedEx became the first overnight delivery company in the world. Fred Smith virtually revolutionized the industry. Today, FedEx remains the largest overnight delivery company in the U.S. It provides jobs to around 275,000 employees and earns over $32 billion in revenue.

Official site of Federal Express.

Fortune magazine has a video of Fred Smith’s ”Recession Proof Plan” for Fedex.

Fedex cuts CEO pay, freezes hiring.