Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Movie Theater Industry Analysis

No description

Barbara Chavez

on 28 April 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Movie Theater Industry Analysis

Top Performer
Low Performer
-Serves small non-urban markets in order to save on operating costs
-Offer discounted prices by showing second and third run movies
-Market Share: 4.5%
Industry Description
Movie Theaters in the U.S.
-Cinemas, drive-in, outdoor theaters, discount theaters and film festivals
Revenue sources: Admissions and Concessions
Companies are American owned and operate mainly in the U.S.
Performance Analysis
Factors that drive profitability:
-External (Out of firms/industry's control)
-Per Capita Disposable Income
-External Competition
-Internal (Firm/industry has influence on)
-Number of k-12 customers (25% of Rev.)
-Movie making/projection technology
Porter's 5 Forces
Key Success Factors
Movie Theater Industry Analysis
Alan Ahmatovic, Robert Albert, Barbara Chavez, Laura Konya, Sean Mottles
Find "Your" Market
Personalizing the theater by knowing the crowd
Database with revenue information on previously exhibited films
Adapt screenings, ex: increasing trend with 40+
Give the Audience an Experience
Offer moviegoers an experience that cannot be mimicked
in the home setting

People decide they want to go out to the movies before they decide what movie to see

Customers are willing to pay a premium for the in-theater experience
Regal Entertainment
574 theatres, 7,367 screens, 42 states
348 theatres, 4,960 screens
335 theatres, 4,499 screens, 41 states
247 theatres, 2,897 screens, 41 states

Every day experience =>
Affordable luxury product
- 4K/3D/IMAX
- Dolby Atmos
- Access to teens / young adults
- Friendly / Sales oriented
- Highly cyclical
- Retention / Training focused
Target non-urban areas with populations under 200,000
"America's Hometown Theatre"
Buyer Power
Supplier Power
Competitive Rivalry
Threat of Substitution
Threat of New Entrants
• High amounts of information available as technology advances
• High amounts of substitutes available
• Ability to quickly adopt new technology
• High due to limited number of suppliers and key functions
• Economies of scale
• Proximity to Key Markets
• Enhanced moviegoer experience
• Access to multiskilled/flexible workforce
• Movie and Video Distributors
- RLJ Entertainment (7%)

• Movie and Video Production
Industry Performance Measures
• High and increasing
2014 Revenue & Growth: 14.9 Billion & 0.29%/year
2014 Profit: 641.7 Million
2014 IVA & Growth: 3.189 Billion & -0.44%/year

Revenue Growth

• Major players all receive and offer the same product at the same time
• Competitive advantage achieved by enhancing moviegoers experience
- film offerings
- ticket prices
- auditorium quality
- concession offerings
• Medium but rising as technology improves
• Customers more comfortable downloading/streaming
Substitutes include:
- Internet streaming and watching from home
- DVD's and rentals (Redbox)
- Netflix, Hulu
- Cable providers (On Demand, HBO Go)
- Video Games, Sports
• Barriers to entry = High and increasing as technology continues to improve
- High start up and operating costs
• Technology and systems
• Rent / Utilities expense

- Difficult to obtain licensing agreements
• Opportunity does exist
Economies of Scale
- Three main revenue sources
- Increase minimum
efficient scale
- Easier to acquire new
- Distributor relationships
Proximity to
Key Markets
- Amenities
- Close to the target markets
- Offer ease of access
Comparable Industries
-Satellite TV Providers
-2014 Revenue & Growth: 48.3 Billion & 4.72%/year
-2014 Profit: 6.8 Billion
-2014 IVA & Growth: 12.436 Billion & 2.8%/year
-Movie and Video Distributors
-2014 Revenue & Growth: 2.1 Billion & 1.04%/year
-2014 Profit: 98 Million
-2014 IVA & Growth: 993.4 Million & 10.69%/year

Company Performance Measures
2014 Return on Assets
2014 Revenue & Growth
2014 Operating Income & Growth

Acquire additional theatres near target crowd

Open up smaller discount/niche theaters
Expanding by Differentiating
=> Upgrade existing theaters
=> Close down less profitable ones
-Serves major Urban areas
-Market Share: 21.2%
Enhanced Moviegoer Experience
"The customer experience is always most important, and the growth will follow after that."
-Tim League - The Alamo Drafthouse
-Amy Miles - Regal CEO
- 4D?
“It’s crucial for our industry to invest in premium movie experiences"
- Themed movie nights/classics
- Good food/craft beer
- Servers deliver food/beverages
- Alcohol is served
- Strict noise policy
- No babies/young children
• Soft Drink, Baked Goods Wholesaling
- PepsiCo Inc. (6.6%)
- The Coca-Cola Comp. (6%)
Full transcript