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.

 

 

18,104 thoughts on “Movie Theater Industry”

  8. I have learned some new elements from your web site about pcs. Another thing I have always imagined is that laptop computers have become a product that each family must have for several reasons. They supply you with convenient ways in which to organize homes, pay bills, go shopping, study, hear music and even watch television shows. An innovative strategy to complete many of these tasks is a laptop computer. These personal computers are portable ones, small, effective and lightweight. 9pm cologne

  10. Gaga tweeted a message as well as a web page link to Japan Prayer Bracelets. She fashioned a bracelet, with almost all sales revenue going to Japanese relief initiatives petirzeus88

  11. Thanks for some other informative web site.
    Where else may I am getting that type of info written in such a perfect
    manner? I’ve a project that I’m just now running on, and I have
    been at the look out for such information.

    Here is my web page – boca777

  16. best-keyless-starter-brand
    دوربین ثبت وقایع خودرو (که به نام‌های دوربین داشبورد یا دش‌کم نیز شناخته می‌شود) یک دستگاه کوچک است بهترین مارک کیلس استارتر که معمولاً روی داشبورد یا شیشه جلوی خودرو نصب می‌شود. این دستگاه وظیفه ثبت تصاویر و ویدئوهای مسیر رانندگی و اتفاقاتی که در حین حرکت یا حتی در حالت پارک رخ می‌دهد را بر عهده دارد.

  17. Men’s Suits and Jackets are essential wardrobe staples that combine style, sophistication, and versatility. Available in a variety of fabrics, colors, and cuts, they are perfect for both formal events and business settings. With tailored fits and quality craftsmanship, they offer a sharp, polished look for any occasion.

  18. Men’s Suits are a timeless wardrobe essential, offering sophistication and style for any occasion. Whether for business or a formal event, a well-fitted men’s suit enhances confidence and makes a lasting impression.

  19. Mobile Phone Repair services offer professional solutions for a wide range of issues, including screen cracks, battery problems, and software malfunctions. Experienced technicians use high-quality parts to restore functionality, ensuring quick and reliable repairs for all phone models. Affordable prices and efficient service make mobile phone repair accessible to everyone.

  20. Hey there, You have done a fantastic job. I will certainly digg it and personally suggest to my friends. I’m confident they’ll be benefited from this website. agrawau

  23. Considerably, the post is really the greatest on this worthy topic. I agree with your conclusions and can eagerly look forward to your future updates. Simply just saying thanks can not simply be sufficient, for the fantasti c clarity in your writing. I will perfect away grab your rss feed to stay abreast of any updates. Genuine work and also much success in your business dealings! 카마그라

  24. I feel this is among the such a lot vital information for me.
    And i am happy reading your article. However should remark
    on some normal issues, The site taste is wonderful, the articles is truly great : D.
    Good task, cheers

    Here is my website – Electrical Repair

  25. Junior is the best patent drafting software, designed to enhance efficiency by 75-85%. With personalized learning and comprehensive support, it helps patent professionals streamline their workflow while maintaining confidentiality and security.

  27. Some tips i have seen in terms of pc memory is that often there are technical specs such as SDRAM, DDR and so forth, that must match up the specifications of the mother board. If the personal computer’s motherboard is reasonably current while there are no main system issues, replacing the memory literally will take under sixty minutes. It’s one of the easiest laptop upgrade methods one can consider. Thanks for revealing your ideas. rose tequila

  30. Hmm is anyone else experiencing problems with the pictures on this blog loading?
    I’m trying to figure out if its a problem on my end or if it’s the blog.
    Any feed-back would be greatly appreciated.

    Here is my blog: Paito Warna SDY

  32. Discover a world of exciting online games at The Pokies Net. The platform offers an impressive selection of games, including live experiences, designed to entertain players of all levels. With a sleek interface and rewarding features, The Pokies Net is a great destination for those seeking quality online gaming.
    Check out the official website to learn more and start playing today: https://aussiethepokies.net/zEk

  35. Big shoutout to officialtravisscotmerch.com for delivering some of the best merch I’ve ever seen! The variety is insane, and there’s something for every fan whether you’re into hoodies, tees, or even collectibles. officialtravisscotmerch.com The graphics on the shirts are bold and really capture Travis’s style. I’ve been following his music for years, and it’s cool to have merchandise that represents that journey so perfectly.

  36. Sexuality is a vital aspect of overall well-being, encompassing physical, emotional, and social dimensions. At 8 Health, we provide expert insights and tips to help you navigate and enhance your sexual health. From intimacy advice to the latest research, we empower you to embrace a fulfilling and confident lifestyle.

  39. Wow, cool post. I’d like to write like this too – taking time and real hard work to make a great article… but I put things off too much and never seem to get started. Thanks though. anime

  40. 立即下载WPS Office，体验全方位的办公解决方案！WPS Office集成文档、表格、演示、PDF功能，兼容Microsoft Office文件格式，提供简洁易用的办公环境。支持云存储、团队协作及多平台同步，适用于Windows、Mac、Android和iOS设备。免费下载WPS

    Here are a Direct Link: wps 下载

  41. באתר זה תוכל למצוא את השירותים הטובים ביותר של banothamot חמות ואיכותיות, אשר מספקות חוויות מרגשות ומספקות, כדי להבטיח לך חוויה בלתי נשכחת ושביעות רצון מלאה. https://banothamot.org

  42. בנות חמות מציעות שירותים דיסקרטיים ומקצועיים, עם דגש על סיפוק והנאה. הן תמיד זמינות להגשמת הפנטזיות שלך, מספקות חוויות בלתי נשכחות ומטרתן להפוך אותך ללקוח מרוצה.

  44. All the contents you mentioned in post is too good and can be very useful. I will keep it in mind, thanks for sharing the information keep updating, looking forward for more posts.Thanks ratukilat77

  46. KKG Office offers Usługi księgowe online, providing expert accounting and bookkeeping services. Our personalized approach ensures UK businesses receive precise, value-oriented financial management to support their growth effectively.

  47. Our plumbing services in Roseville, CA, are fast, reliable, and friendly. With licensed and insured technicians, we handle emergencies efficiently, ensuring even major plumbing issues are resolved swiftly and with care.

  48. 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. 开云体育

Leave a Reply

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