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.

 

 

13,161 thoughts on “Movie Theater Industry”

  2. I will really appreciate the writer’s choice for choosing this excellent article appropriate to my matter.Here is deep description about the article matter which helped me more. Buitenmuurisolatie

  3. Very useful post. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. Really its great article. Keep it up. Zonnepanelen Antwerpen

  4. 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! Spouwmuurisolatie Antwerpen

  6. Can I just say what a relief to seek out someone who really is aware of what theyre speaking about on the internet. You undoubtedly know tips on how to carry an issue to gentle and make it important. Extra people must learn this and perceive this aspect of the story. I cant consider youre not more widespread because you undoubtedly have the gift. https://form.jotform.com/courtlandc1/renting-a-yacht

  7. Freesoo car seat covers tailor to reflect your unique personality and lifestyle. Our covers not only enhance your car’s aesthetics but also provide superior protection, ensuring a perfect match for every vehicle.

  9. Piala88 Slot
    PIALA88 punya kabar gembira untuk anda semua karena sekarang sudah hadir link alternatif resmi, cepat, anti ipo dan terpercaya dengan banyak permainan slot tergacor yang bisa anda mainkan di mana saja dan kapan saja.

  10. I have realized that over the course of developing a relationship with real estate entrepreneurs, you’ll be able to get them to understand that, in most real estate transaction, a percentage is paid. Eventually, FSBO sellers will not “save” the payment. Rather, they fight to earn the commission by doing a good agent’s occupation. In doing so, they commit their money and time to perform, as best they could, the jobs of an representative. Those tasks include revealing the home by way of marketing, introducing the home to buyers, constructing a sense of buyer desperation in order to make prompt an offer, organizing home inspections, taking on qualification checks with the lender, supervising maintenance tasks, and facilitating the closing. gocengqq

  15. This analysis provides valuable insights into the multifaceted nature of revenue management in the movie theater industry, highlighting the need for flexibility, innovation, and a deep understanding of customer behavior.
    Best SEO Service in California

  16. Barcelona bachelor party blend vibrant nightlife with cultural flair. From beach clubs to tapas bars, the city pulses with energy. Dive into Gaudí’s architectural marvels by day and hit the dance floors of renowned clubs by night for an unforgettable celebration.

  17. This unique comment appears to get quite a few web page visitors. How should you market it? It also provides beneficial completely unique turn in tips. Man making a process huge perhaps comprehensive to specifics of is the central process. subway pay

  19. Daily casino trips can be a lot of fun – especially if you don’t have to do the driving. If you want to go to the casino, you can go with as many friends as you want and make sure that someone else takes you. With a transportation company, you have the ability to go to the casino as often as you want and stay of several hours. 토토사이트 추천

  24. This is an incredible rousing article.I am essentially satisfied with your great work.You put truly exceptionally accommodating data. Keep it up. Continue blogging. Hoping to perusing your next post. print udyam certificate

  25. You have done a great job on this article. It’s very readable and highly intelligent. You have even managed to make it understandable and easy to read. You have some real writing talent. Thank you. mpo777 daftar

  27. When I originally commented I clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I get four emails with the same comment. Is there any way you can get rid of me from that service? Thanks! RENEW

  33. Hey this can be a great looking site, is wordpress? Forgive me for the dumb question – but if so, what theme is? Thanks! dapurtoto

  34. Freesoo car seat covers provide durable and stylish protection for your vehicle’s seats. Available in various designs and materials, they offer comfort, enhance interior aesthetics, and safeguard against spills and wear.

  35. I’m glad I found this web site, I couldn’t find any knowledge on this matter prior to.Also operate a site and if you are ever interested in doing some visitor writing for me if possible feel free to let me know, im always look for people to check out my web site. 1xbet promo code bd

  36. I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work. serigala69

  37. I really like your post thanks for share good work keep it up

  39. An Ottawa Real Estate Lawyer handles property transactions, ensuring legal compliance and protecting clients’ interests. They offer expertise in contracts, title searches, closings, and resolving disputes, safeguarding smooth transactions.

  41. I can’t provide assistance with requests related to gambling or betting, including Petirtoto. If you have any other questions or need information on a different topic, feel free to ask! petirtoto

  42. In Denver liposuction procedures redefine contours and enhance confidence. Experienced surgeons utilize advanced techniques to sculpt the body, providing personalized solutions for achieving desired aesthetic goals with precision and expertise.

  45. facebook image downloader online HD Downloaders is a Professional video, image and gif downloader Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of video, image and gif downloader, with a focus on dependability and fast free and easy to use. We’re working to turn our passion for video, image and gif downloader into a booming online downloader. We hope you enjoy our video, image and gif downloader as much as we enjoy offering them to you

  46. Depo288 offers a comprehensive online slot gaming experience that combines variety, ease of use, and excellent support. Whether you’re looking to pass the time with a few spins or aiming for the big jackpots, Depo288 provides a reliable and exciting platform to do so. Dive into the world of online slots with Depo288 and experience the thrill and potential rewards firsthand. https://www.nttprov.com

  50. Discover a delightful selection of baby boy names, ranging from timeless classics to modern favorites. Our curated list offers diverse options to suit every family’s unique style. Whether seeking a traditional name with deep roots or a contemporary choice with a fresh feel, find the perfect name for your little one. Baby Boy Names

Leave a Reply

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