by

Movie Theater Industry

Movie Theater Industry

The cinema or movie theater industry has been in existence for more than 100 years, but has become an increasingly popular entertainment venue with the rise of the film industry and advances in film technology. The original theater complexes were designed with one theater and could seat from 50 to 100 people. Seats were standard and prices did not vary according to time or space.

Today multi-theater Cineplex’s offer a variety of movie options catering to different tastes. Theaters can often be smaller, from 50 to 100 people, or larger, seating a few hundred people at one time.Space is defined implicitly in the industry. A ticket buys the right to one seat in one theater, which is a predefined amount of space.

Use of Space

The standard special layout is stadium seating, which offers the maximum capacity in the space often allotted.

 

Other seating styles that have been utilized are lounge style seating, such as the Parkway Theater in Oakland, California, pictured below. Unfortunately, it seems Parkway Theater has recently closed, which suggests this type of venue may not be as popular or successful as others.

A third seating or special arrangement is VIP seating for higher paying customers. Only a few companies seem to use this concept, mostly notably Vue Cinema in Europe.

A fourth concept is to offer dinner as part of the movie going experience. Turning some seats to dinner tables would be a unique use of space. It would play particularly well with the “dinner and a movie” concept in the US. Some examples of this are http://www.starcinemagrill.net/ or http://www.foreigncinema.com/

 

Additional Revenue Generators

Most movie theaters today offer a wide variety of ancillary revenue generators, generally in the form of food and drinks in the foyer or lobby before entering the theater. Movie theaters in some parts of Europe, such as the UK, offer alcohol in the theaters. Some theaters will also offer arcade style video games in the lobby as well. For those movie theaters that cater to the dinner crowd food is also a major source of revenue.

Apparently film distributors drive very hard bargains in exchange for the rights to play a film. In many cases, these ancillary revenue generators become the only source of revenue or profit for the theater itself as all revenue from tickets goes to the distributor or producer.

 

Additional uses of Space

Another concept, the only example of which I could find is http://www.12apostleshotel.com/dining/dining/dinner-movie, would be to use private rooms similar to Asian Karaoke. This boutique hotel in Cape Town has a small private theater for rent, but it is not the core of their business. The movie theater industry in Eastern Europe and Russia apparently have a number of much smaller, private, theaters, but they stand independent of larger theaters. Bringing this concept to the multiplex may be an interesting alternative to the larger public theaters.

Service could also be added as an additional component of the theater experience. While theaters already service food and drink, and some are even offering dinner to their guests, charging for delivery of these items for guests who don’t want to miss part of the movie is a very good opportunity. Otherwise moving the bar or counter selling these items into the theater so they can draw additional customers is another opportunity.

 

Time

Time in theaters is sold implicitly. One ticket grants access to one movie. However, there have been a number of variations to this.

Examples of variations in the current implicit use of time are:

  • Movies sold as double-headers, two movies for one ticket
  • Tickets sold to all day running movies, where one ticket buys access to a theater and the movie runs back to back all day
  • Some theaters will also sell an all day pass, for multiple movies in one day, or a monthly pass for unlimited viewing in a month

These last examples of selling an all day or all month passes to a theater begin to cross the line to selling time explicitly. Movies are also a set amount of time and patrons are often not allowed to stay after the movie has ended. Thus unlike other implicitly sold events, such as a restaurant or golf, the duration of this event is not controlled by the customer, but rather by the theater.

In fact considering that most of the revenue of many theaters comes from ancillary revenue centers, such as food and beverage, it would make sense for theaters to allow their patrons to stay for multiple movies, thus encouraging the purchase of these items.

Some theaters do sell their space for private events, which also entails the explicit use of time. One example of this is http://conferencing.myvue.com/PageProducer.aspx. With built in stadium seating and audio/visual capabilities, theaters make for a great auditorium for private events and allow theaters to charge by the hour as hotels do for their function space.

Additional Uses of Time

Given the ample space many movie theaters have and the fact that it is not used much early in the day or at all late at night, these would be ideal times to use the space for something else. One interesting concept, which took hold shortly in Hawaii was to use a large theater space as a night club or concert venue. The theater was designed with a few alternative uses in mind and the stage in front of the screen made it well suited for a concert or dance floor. (http://www.l4waikiki.com/)

Price Lever

Physical and non-physical rate fences seem to vary widely by region. The US has the simplest approach with vary few variations in price, which Wikipedia comments on the issue as an “economic puzzle.” The standard breakdown in non-physical rate barriers generally being different prices for adult, child, senior, military, students, or other classifications of this kind. Theaters will also charge higher prices for prime time showings, generally at night, at for weekend showings. Variations of this strategy are to offer extreme discounts during very low demand periods, such as weekday mornings.

Other non-physical rate fences include using loyalty or frequent customer programs. These allow customers to pay a set amount per month for discounts on movies they watch or to accumulate points for each movie watched to be cashed in later for a free movie.

Non-physical fences also exist in the form of new distribution systems. Tickers were traditionally only offered at the ticket counter, but now they are available online or over the phone. www.fandango.com is a great example of a prebooking website. Unlike hotels where customers pay less for booking in advance, customers using these sites are paying extra for the convenience of not having to go to the ticket counter to buy a ticket in advance.

Physical rate fences are surprisingly uncommon in the US. Usually tickets are for open seating and there is no difference in price for any of the seats. Asia and Europe are very different in this case. Asia in particular will charge more for seats in the back or less for seats in the front. They often also have more and less comfortable seats which allow for further variation in price. Theaters also allow or sometimes require customers to reserve a specific seat.

Possible Additional Rate Fences

One rate fence which is not currently employed in some areas, particularly the US, is to charge more for newer or higher demand movies. Movies which are expected to be in higher demand, could be priced at a premium, but often are not.

Second class theaters, those that show movies that have been out for some time, have closed across the US with the ease of viewing movies at home. However this idea could be brought back to the mainstream by showing older very popular movies on occasion at larger theaters. Movies such as the titanic or avatar, which did well in their initial showing, would likely draw large crowds if shown again a few years after they came out.

 

 

17,869 thoughts on “Movie Theater Industry”

  1. “InvertirDigital redefine las inversiones en línea, ofreciendo accesibilidad, herramientas intuitivas y oportunidades globales. La revolución del trading digital ha democratizado el acceso a los mercados financieros para todos.” Para más información visita nuestro sitio web InvertirDigital.com.

  3. I am continually amazed by the amount of information available on this subject. What you presented was well researched and well worded in order to get your stand on this across to all your readers. acim

  7. A booter is a service tailored for professionals and enthusiasts, facilitating robust stress testing of websites and IPs. It employs advanced techniques, a user-friendly interface, and powerful tools to ensure effective testing.

  10. This can be also a fairly beneficial writing that any of us absolutely beloved considering. Possibly not on a daily basis which often experience the likelihood to get a solution. acim internships

  13. I wanted to thank you for this excellent read!! I definitely loved every little bit of it. I have you bookmarked your site to check out the new stuff you post. tdtc

  19. You’re very welcome! I’m delighted to have been able to share information with you, and I’m glad to hear that it’s made your work easier. Christianity and Kabbalah! If you ever need more assistance or have any questions in the future, don’t hesitate to reach out. I’m here to help!

  20. Immediately the website might irrefutably obtain famous one of the most associated with publishing customers, because of its diligent articles or just crucial evaluations. bokep

  21. ゴルフ場や鉄道、水産業などで活躍する業務用衣類乾燥機は衣類に優しい温風式ヒーターを採用し、約30分で乾燥します。またPSE取得しており安全性と信頼性を確保した製品です。 業務用乾燥機

  26. This can be also a fairly beneficial writing that any of us absolutely beloved considering. Possibly not on a daily basis which often experience the likelihood to get a solution. acim shop

  27. Explore London’s vibrant nightlife with male strippers who bring entertainment to a whole new level. Whether for a bachelorette party or a night out with friends, London offers a range of venues showcasing talented male performers. Elevate your celebration with an unforgettable experience,male strippers London blending excitement and sophistication in the heart of London.

  28. Tomorrow’s Affairs is a platform where writers, experts in their fields, are obliged not only to describe reality through argument, but also to predict future events and processes based on their findings.
    Tomorrow’s Affairs

  29. “Wow, what an informative blog post! I learned so much from reading this. If you’re hungry for more insightful content, I highly recommend checking out luxury fashion for further exploration!”

  30. “Infos” refers to short for “information” and often colloquially used to denote data or knowledge. In the digital age, access to infos has become effortless, with a vast array of sources ranging from search engines to social media platforms. However, the challenge lies in discerning reliable information amidst the sea of data available. Ensuring the accuracy and credibility of infos is paramount, especially in fields like journalism, research, and academia. Thus, the ability to navigate and evaluate infos effectively has become a crucial skill in today’s information-driven society, empowering individuals to make informed decisions and foster critical thinking.

  36. This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. acim

  41. Very easily this site will most likely irrefutably perhaps end up being popular including numerous weblogs individuals, in order to it’s persistent content pieces or possibly views. 먹튀검증

  45. pakar69 merupakan salah satu di antara situs judi slot online gacor terbaik dan paling fenomenal pada awal tahun 2024 ini. Hal itu karena situs slot pakar 69 hadir dengan menghadirkan beragam game slot terlengkap dan terdapat banyak sekali hadiah yang mudah diraih

  46. Hey There. I found your blog using msn. This is a very well written article. I will be sure to bookmark it and return to read more of your useful information. Thanks for the post. I will definitely return. 무료스포츠중계

  48. I love your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz answer back as I’m looking to create my own blog and would like to know where u got this from. thanks acim

  49. Welcome to HDToday – Your Ultimate Destination for Free Movies and TV Series!movie hd today At HDToday, we take pride in providing the best online streaming experience, setting ourselves apart in a crowded digital landscape. Here’s why we stand out:

    1. Ad-Free Experience: Say goodbye to interruptions! HDToday is committed to delivering a seamless viewing experience without any pesky ads, ensuring your entertainment is uninterrupted.

Leave a Reply

Your email address will not be published. Required fields are marked *