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.

 

 

17,711 thoughts on “Movie Theater Industry”

  1. Your content is nothing short of brilliant in many ways. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers 먹튀검증

  4. I am a content creator and I always struggled to find a good application to create amazing videos, animations or any kind of content for my videos and since if found Alight Motion APK my worries have just vanished because it gives me every advanced feature required to create good content in an easy to use interface.

  6. Truly, this article is really one of the very best in the history of articles. I am a antique ’Article’ collector and I sometimes read some new articles if I find them interesting. And I found this one pretty fascinating and it should go into my collection. Very good work! eric weinberger wife

  12. The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought you have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention. serialfb com

  13. Bravo on another fantastic blog post! Your ability to distill complex information into digestible insights is truly commendable. For those eager to continue their learning journey, Foot Doctor Ogden Utah offers a treasure trove of additional resources and articles.

  14. I have express a few of the articles on your website now, and I really like your style of blogging. I added it to my favorite’s blog site list and will be checking back soon… methatreams

  15. Might be likewise a reasonably wonderful short article that we all most certainly most popular assessing. Might be no day-after-day in which watch the possibility to look through unit. 먹튀검증

  16. Bravo on another fantastic blog post! Your ability to distill complex information into digestible insights is truly commendable. For those eager to continue their learning journey, Foot Doctor Ogden Utah offers a treasure trove of additional resources and articles

  17. Hey There. I found your blog using msn. This is a very well written article. I’ll be sure to bookmark it and come back to read more of your useful info. Thanks for the post. I’ll definitely return. cpgtoto

  18. Ohio business entity search tool is an invaluable resource for individuals and businesses seeking information about the vast array of companies operating within the state. Utilizing this tool empowers users to make informed decisions, ensuring transparency, and fostering a healthy business environment in Ohio.

  19. In any game, you depend on the currency of the game to survive and make progress in the virtual world. V bucks are the in-game currency of this giant game. V Bucks are the bane of existence when it comes to the digital world of Fortnite 카지노 보증

  23. You actually make it look so easy with your performance but I find this matter to be actually something which I think I would never comprehend. It seems too complicated and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it! church of the highlands exposed

  26. b2b massage or business-to-business massage, involves skilled practitioners providing a relaxing and therapeutic experience. Goldenb2b Massage Services ensures high-quality service with beautiful professionals, ensuring a premium massage session.

  29. cleaning hua hin provides high-quality cleaning services in the scenic area of Hua Hin. Our experienced team ensures homes and businesses remain pristine and inviting for residents and visitors alike

  30. Embark on captivating Marrakech tours to unveil the city’s vibrant charm. Explore bustling souks, admire historic architecture, and immerse yourself in the rich cultural tapestry of this enchanting Moroccan destination.

  31. Thanks for sharing this interesting blog with us.My pleasure to being here on your blog..I wanna come beck here for new post from your site. 籠車

  32. Just admiring your work and wondering how you managed this blog so well. It’s so remarkable that I can’t afford to not go through this valuable information whenever I surf the internet! sp5der

  35. That is why selling advertising campaigns marketing so that you could invaluable explore previous advertisment. Quite simply to jot down stronger set that fit this description. Langtang Trekking

  36. This particular papers fabulous, and My spouse and i enjoy each of the perform that you have placed into this. I’m sure that you will be making a really useful place. I has been additionally pleased. Good perform! ios industrial outdoor storage

  40. Hello There. I found your blog using msn. This is an extremely well written article. I will be sure to bookmark it and return to read more of your useful information. Thanks for the post. I’ll certainly comeback. Blox Fruits coloring pages

  42. FREE ADVERTISING WEBSITE WHERE YOU CAN POST YOUR BUSINESS OPPORTUNITY, WEIGHT LOSS, REAL ESTATE, ONLINE EDUCATIONS, LOCAL SERVICES, LEGAL SERVICES, HEALTH AND BEAUTY ADS AND MORE. UPGRADE FOR JUST $5. AND YOUR AD IS FEATURED ON OUR HOMEPAGE IN THE PREMIUM ADS SECTION. YOUR BEST CRAIGSLIST ALTERNATIVE!
    Free Advertising Websites

  44. Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. I appreciate your post and look forward to more. 메이저사이트

  45. Body of water get on your site though making use of detect merely merely a certain amount of part submits. Comforting technique for not to distant future, We are book-marking right now get variations accomplish occurs out. Precision Machined Parts

  48. I have express a few of the articles on your website now, and I really like your style of blogging. I added it to my favorite’s blog site list and will be checking back soon… teltlk

  49. I have express a few of the articles on your website now, and I really like your style of blogging. I added it to my favorite’s blog site list and will be checking back soon… us9514961195221

  50. You actually make it look so easy with your performance but I find this matter to be actually something which I think I would never comprehend. It seems too complicated and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it! jacob barnett

Leave a Reply

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