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Topic: Are movie theaters doomed?
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Jeffry L. Johnson
Jedi Master Film Handler
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Posts: 809
From: Cleveland, Ohio, USA
Registered: Apr 2000
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posted 11-13-2007 08:52 AM
Are movie theaters doomed? quote: Are movie theaters doomed? Do exhibitors see the big picture as theaters lose their competitive advantage?
Jon Silver and John McDonnell, School of Advertising, Marketing, & Public Relations, Queensland University of Technology, Brisbane, Queensland, Australia
Available online 9 October 2007.
Abstract
After three straight years of decline, movie theaters in the US may have recently ended a period of crisis with an increase in annual admissions (+ 3%) in 2006. This article argues, however, that major problems are not over for the industry. Most movie theaters in the multiplex era have adopted a remarkably similar strategy, one which is also very vulnerable to recent trends such as the explosion of home cinema, pay TV, video-on-demand (VOD), discounting by mass merchandisers of DVDs, computer games, and the collapse of video windows. Just as technological convergence has created a challenge for movie theaters, as it has in the past, so too can new technologies and creative use of assets (combined with multiple target marketing) offer a counter measure for at least some movie theaters; at least, until the next challenge arises. What is unlikely to succeed is the status quo, especially when so many multiplexes offer the same format as their competitors, appear to adopt a narrow definition of what business they are in, and manifest a ‘one-size-should-fit-all’ approach to customers. The industry has employed differentiation and niche marketing much less than other industries. As the extensive variety of necessary strategies cannot comprehensively be explored herein, this article focuses on two new technologies from the IMAX Corporation, DMX and MPX, as an example of how a theater operator might counter audience declines.
Keywords: Cinema; Movie theaters; Strategy; IMAX; Home entertainment
Corresponding author.
Business Horizons Volume 50, Issue 6, November-December 2007, Pages 491-501
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Monte L Fullmer
Film God
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Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004
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posted 11-13-2007 01:24 PM
quote: Thomas Pitt I do foresee that in the not too distant future, second-run and third-run houses will see a decline in the number of visitors. More and more people are getting HD-TV systems and the movies these theaters show are often available on DVD already
I dunno about this one since I work in a discount house..being that the quality of movies nowdays geared for the 12 to 18 year old minds, they come out of the gate with guns a-blazing, but they run out of shells and legs within two to three weeks.
Then, we discount houses picks up these exhausted movies and keep them forever. Why? These movies aren't worth the 8 to 9 bucks (3.4 to 4 Pound Sterling in the UK )to see in a first run house.
"Transformers" and "Ratatouille" are now out on DVD, yet we're still doing the business on them. Our biggest surprise was a few years ago when "White Chicks" came out. DIED in the first run houses. Yet, we held on to that crazy movie for a record 17 weeks.
Yet, for the 1 to 2 bucks to spend at the gate: "Well, anyone can afford that kind of money to go see a movie - even the worst ones, cuz that buck or two loss ain't gonna kill them"
But, the big thing is that with a cheap movie ticket means more to spend at the snakbar, esp. if the conc. prices follow the cheap gate prices..
"Thar's gold in dem thar hills, folks"
One little 3plex discount in our area has been striking gold ever since a big 21plex opened up down the next block since they've been getting their overfill from constant sellouts at the 21plex. Plus, this 3plex is always blowing out the other 6plex discount a couple of miles down the street. Why the success of this 3plex? SIMPLE! The owner of that 3plex know how to market that theatre very effectively.
No, I don't think that the discount world will ever fade away simply it's a great avenue to go down on to see the movie on the big screen for little cost involved from the patron.
Plus, it allows those who are strapped for cash, or on a tight family budget, to still get out and go to a movie for their entertainment fix.
-Monte
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