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.

 

 

15,809 thoughts on “Movie Theater Industry”

  2. 안녕하세요. GOOGLE을 사용하여 블로그를 찾았습니다. 이것은 아주 잘 쓰여진 기사입니다. 나는 그것을 북마크하고 당신의 유용한 정보를 더 읽기 위해 돌아올 것입니다. 게시물 주셔서 감사합니다. 꼭 돌아 올게요. 부산달리기

  6. This article is an appealing wealth of informative data that is interesting and well-written. I commend your hard work on this and thank you for this information. You’ve got what it takes to get attention. pallet inverter

  8. The changes in the seating design and pricing strategies of cinemas have really affected the audience’s choices. I communicated with some movie lovers and industry experts on Telegram 中文, and they often discussed how to improve the viewing experience and revenue through different ticket prices and seating layouts.

  9. The history of the cinema industry and revenue management is indeed an interesting topic. In the business discussion group on TG纸飞机电报中文官网, I have seen many discussions about the development of the entertainment industry and revenue optimization. Many people shared their views on the future trends of the cinema industry, which is quite inspiring.

  10. The discussion of cinema revenue management can be very in-depth, from historical development to modern practice. In the management and marketing groups on TG中文语言包, I have seen some sharing on how cinemas can improve profitability through innovative marketing strategies and user experience, which is particularly helpful for industry insiders.

  13. This Glowing Shower Gel from La Charmante leaves my skin feeling refreshed and hydrated after every wash! The light, natural formula cleanses without stripping my skin of its moisture, making it perfect for everyday use. I’ve noticed a natural glow and smoother texture after adding it to my routine. If you’re looking for a shower gel that nourishes and enhances your skin’s radiance, I highly recommend trying this product!

  15. Very nice blog and articles. I am realy very happy to visit your blog. Now I am found which I actually want. I check your blog everyday and try to learn something from your blog. Thank you and waiting for your new post.high temperature plastics

  16. Kora TV a popular online streaming platform, provides live sports broadcasts, primarily focusing on football matches from major leagues around the world. Kora TV

  17. Very nice blog and articles. I am realy very happy to visit your blog. Now I am found which I actually want. I check your blog everyday and try to learn something from your blog. Thank you and waiting for your new post. injection molding materials

  18. Thank you for sharing such insightful information! It’s always refreshing to come across content that provides real value. Speaking of quality, I’ve recently come across the John Dutton Jacket, which perfectly captures the essence of John Dutton’s character in Yellowstone. If you’re a fan of iconic TV series outfits, the John Dutton Jacket is a must-have for any collection. Looking forward to more informative posts like this!

  19. I completely agree with the insights shared in this article! It’s fascinating how much detail goes into crafting Beth Dutton’s outfits. For anyone interested in expanding their wardrobe with similar styles, I highly recommend checking out the collection of Beth Dutton Outfits by America Outfits. The variety and quality are impressive, with something to match every fan’s taste. If you’re a fan of Yellowstone, these outfits are a must-have. Looking forward to exploring more articles and updates on this topic!

  20. ศักราชใหม่ของการเล่น เว็บตรง สล็อตฝากถอน ไม่มี ขั้นต่ำ 1 บาทก็ ถอนได้ ความสนุกที่เข้าถึงง่ายที่สุด เว็บตรง ฝากถอน ไม่มีขั้นต่ำ 2024 https://bsc.news/post/slot-web-direct-1-baht

  22. Find the Best-Fit Laravel Developer for Your Needs
    https://witarist.com/hire/hire-laravel-developers/
    Skill Gaps: In the field of development, it is very difficult to identify the expert Laravel developer with the exact skills required for the project. Our thorough screening process ensures that only the most eligible developers join the team.
    Seamless Team Integration: The most difficult situation for companies to hire a developer who can easily collaborate with their team. We prioritize cultural conformity and allow Laravel developers to seamlessly integrate into your environment.

  24. I’m impressed, I must say. Genuinely rarely will i encounter a blog that’s both educative and entertaining, and without a doubt, you’ve got hit the nail about the head. Your thought is outstanding; the problem is something too little folks are speaking intelligently about. I am happy that we found this inside my search for some thing regarding this.emotivci

  27. مکپی به انگلیسی Macpi برندی ایتالیایی و یکی از برندهای مطرح در زمینه‌ی تولید تمامی ماشین‌آلات مورد نیاز برای خطوط اتو کشی و پرس در سطح جهان می‌باشد

    Here are a Direct Link: چرخ خیاطی صنعتی مکپی

  28. 나는 당신의 블로그를 정말 좋아합니다. 훌륭한 기사. 가장 분명한 것은 사람들이 할 수 있기 전에 배워야합니다. 다파벳

  31. This is only the data I am finding all over the place. A debt of gratitude is in order for your site, I simply subscribe your site. This is a pleasant web journal.. batana oil

  34. 꽤 좋은 게시물입니다. 방금 귀하의 블로그를 우연히 발견하고 귀하의 블로그 게시물을 읽는 것이 정말 즐거웠다고 말하고 싶었습니다. 어떤 식 으로든 피드를 구독하고 곧 다시 게시 해 주시기 바랍니다. 유용한 정보에 감사드립니다. 네임드토토

  36. 꽤 좋은 게시물입니다. 방금 귀하의 블로그를 우연히 발견하고 귀하의 블로그 게시물을 읽는 것이 정말 즐거웠다고 말하고 싶었습니다. 어떤 식 으로든 피드를 구독하고 곧 다시 게시 해 주시기 바랍니다. 유용한 정보에 감사드립니다. 루피카지노 도메인 주소

  37. 이 때문에 제공하기 전에 적용 가능한 조사를 할 수 있다는 것이 진정으로 우수합니다. 그렇게하면 더 큰 문서를 공유 할 수 있습니다. 티모토토

  38. 이것은 당신이 제공하고 무료로 제공하는 훌륭한 자원입니다. 양질의 리소스를 무료로 제공하는 것의 가치를 이해하는 블로그를 보는 것을 좋아합니다. 링크모음

  39. თუ თქვენ მანქანის გაქირავების საჭიროება გაქვთ, OneTwoRent იდეალური პლატფორმაა! ჩვენ ვთავაზობთ ფართო არჩევანს მანქანებს, რომლებიც მფლობელებისგან შეგიძლიათ გაქირავოთ. OneTwoRent https://onetworent.ge/ საშუალებას გაწვდით იპოვოთ საუკეთესო ფასები და მოქნილი პირობები. პლატფორმა მარტივი და ინტუიციურია, რაც ნიშნავს, რომ დიზაინითაც და ფუნქციონალითაც კომფორტულად შეგიძლიათ მოიძიოთ მანქანა ნებისმიერი შესაძლებლობის მიხედვით. დამატებით, შეგიძლიათ გააკეთოთ შეკვეთა პირდაპირ მფლობელებისგან, რაც მოგაწვდით შესაძლებლობას პირდაპირ დაუკავშირდეთ მფლობელს და მოაწვდოთ საჭირო დეტალები. არ დაგვავიწყდეს, რომ машина შეგიძლიათ აირჩიოთ დროულად და შესაბამისად თქვენს საჭიროებებს

  41. 방금 귀하의 블로그를 우연히 발견하고 귀하의 블로그 게시물을 읽는 것이 정말 즐거웠다고 말하고 싶었습니다. 어떤 식 으로든 피드를 구독하고 곧 다시 게시 해 주시기 바랍니다. 유용한 정보에 감사드립니다. 링크모음 사이트

  43. 꽤 좋은 게시물입니다. 나는 방금 귀하의 블로그를 우연히 발견하고 귀하의 블로그 게시물을 읽는 것이 정말 즐거웠다고 말하고 싶었습니다. 어떤 식 으로든 피드를 구독하고 곧 다시 게시 해 주시기 바랍니다. 유용한 정보에 감사드립니다. 뉴토끼 접속 주소

  45. Dynamic Spray LTD offers expert spray painting services for kitchens, uPVC, and commercial projects. Our team utilizes advanced coatings and extensive research to ensure top quality and lasting results.

  47. 귀하의 블로그가 너무 놀랍습니다. 나는 내가보고있는 것을 쉽게 발견했다. 또한 콘텐츠 품질이 굉장합니다. 넛지 주셔서 감사합니다! 아벤주소

  48. 무료로 제공하는 훌륭한 자원입니다. 양질의 리소스를 무료로 제공하는 것의 가치를 이해하는 블로그를 보는 것을 좋아합니다. 부자벳토토

  50. 는 것이 정말 즐거웠다고 말하고 싶었습니다. 어떤 식 으로든 피드를 구독하고 곧 다시 게시 해 주시기 바랍니다. 유용한 정보에 감사드립니다. 쇼미더벳 토토

Leave a Reply

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