Appendix A
Porter’s Five Forces Framework
Competitive Rivalry (Medium to High)
Movie theaters are conglomerates in the film industry. Only a few competing firms. Offer the same ticket prices and provide the same products and roughly the same services to customers.
Threat of New Entrants (Low)
There are high entry costs to enter the market. The large industry competitors already have captured the market share.
Threat of Substitutes (Medium to High)
It can be difficult to re-create the experience of going to the movie theater. However, home theaters and in-home entertainment has become more popular as online streaming has taken a precedence in the industry.
Bargaining Power of Suppliers (Medium to High)
Suppliers, being the movie studios, can basically charge whatever they want for the viewing rights to new movies.
Bargaining
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Socially educated parents are more likely to make decisions based on updated information, whereas parents, who lack higher education or have less education, make decisions without getting the background information. Demand for movies could be dependent on this factor. Also, people who have a more prestigious job reputation or social reputation can influence demand. These people carry this prestige because of the ways that society views their characteristics either as a group or as an individual. People that own homes may be more likely to attend movies rather than renters. In Canada, the population is aging. The age for the average movie-goer is increasing.
Technological
Movie theaters are focusing on moving from film projection systems to digital and 3D systems. With these added technological changes, ticket prices typically rise creating revenue gains for the industry. These changes are drawing more consumers into the theaters because the in-theater experience is something that they cannot get from online streaming at
This case really takes a look into the world of the movie industry. The entertainment aspects and the motion picture exhibition are massive points that really make this case study interesting. This case harps on the dynamics of the value variables that have an impact on the profitability of movie theater owners. Consumers ultimately decide the way the studio-dominated business model will grow.
The film rating system was also sponsored by the National Association of Theatre Owners. This association is the largest exhibition trade organization in the world. It represents 26,000 movie screens in all 50 states and in more than 20 countries worldwide. The National Association of Theatre Owners’ purpose is “to preserve, enhance, and promote the magic of going to the movies.”
the movie theatre, or in their own home, they will find a way to watch a movie. Today electronics plays a
I believe, that the best form of social interaction while watching a movie is to be part of an audience and its collective reactions. Simultaneous cheers and claps during a heroic act, whistles during corny one-liners or shrieks during a thrilling sequence accentuate the experience of watching a movie. This is what you miss when you watch a movie sitting at home. A lot of times, the kind of audience you watch a movie with can affect whether you enjoy it or hate
Movies have been one of the most popular pastimes for Americans for decades. They are the topics of conversation, a place for lovers to go on dates, and an industry that the general public seems to have a fascination for. However although we think of movies as another entertainment source, they were not always as socially accepted by the people. In 1904, Harry Davis opened the first freestanding moving-picture theater. Although he was met with much skepticism, his idea would have a lasting effect on America's culture. When they first opened, the people were not immediately accepting. Safety, cleanliness, and price were a few of the concerns the public had. After a few changes however, the "nickelodeons", as they were called, started booming. Flashing lights were put up wherever there was room on the façade of the buildings. Ventilation systems assured people that they were br...
As advance technology of fiber-optic developed and is on the rise, everyday there is another story about entertaining movies on demand and streaming online is with ease. Those developments which let movie’s viewers sit in the comfort of their home or anywhere with access to the internet can stream instance movies with a push of a bottom. They no longer need to make a trip to the movie’s stores for movies rental and return, so that is why movie shops fail and filed for bankruptcy bring a symbolic close to the “let’s go rent a movie” era. Blockbuster LLC, formerly Blockbuster Entertainment Inc., both owned and franchised American-based giant provider of home movie and video game rental services through video rental stores, later adding movies by mail, streaming online and video on demand. Due to the peak of fiber-optic and competition from companies such as Netflix, Redbox, and GameFly, Blockbuster became the victim of digital media and filed for bankruptcy on September 23, 2010 due to significant lost in revenue.[3]
...equels to high grossing films tend to be less profitable. Elaborate visuals and movies with large production budgets tend to do a better job of generating gross sales.
Movie theaters are over as we know it. However, according to the article, “Movie Theaters Fight Streaming by Assaulting the Senses”, theater owners are trying to come up with ways to bring people back to the movies. Some of these ways include: IMAX theaters, Smell-O-Vision, and kinetic seats. In spite of many theaters upgrading the way they show movies, countless amounts of people would rather stay at home and rent the same movie on Netflix.
Grand Cinema is one of the four-largest movie theater chain in Bangkok that has 7 branches located in central business area around Bangkok which provides high quality shows, entertainment services and facilities to its customers. Now Grand Cinema wants to offer new experiences to their customers by using “innovative theater re-production” strategy which seek for Thai traditional and historical films to shows again. This strategy targets on three target groups: children, teenager, adult and also provides new business model to attract adulthood. Grand Cinema has three ways for customers to purchase their tickets: walk to the reception, call operator by phone, online reservation and three ways to make a payment: cash, credit card, show transaction slip for customers who book by online reservation and don’t have credit card. Grand Cinema provides two policies to schedule movie showtime that is new-coming movies and re-run
...verage, up-to-date selection, and convenient service. The movie rental market is not bad, but it will require a good market strategy. As Jay Abraham once said, "If you're attacking your market from multiple positions and your competition isn't, you have all the advantage and it will show up in your increased success and income.”
A movie theater has its advantages and disadvantages. One advantage is that people can see the showing of different movies that have been newly released. The disadvantage is that, that is all there is to it and nothing more. At home, you can control the variety and ways to watch a movie. People buy many movies to watch at home and it can be anything at any time even at any place. The only bad thing about it is that they cannot see any of the newest released movies that recently came out in theaters. There are two types of ways people watch movies at their homes. One way is people already own DVDs or have bought many of them and start watching them in their DVD players. The other ways are streaming a movie through the internet. For this to happen, people would mainly buy the monthly subscriptions such as Netflix, Hulu, or Amazon Prime. Through this subscription people do not only watch movies in their homes but they also watch television shows. The only downside is there is a very limited number of movies added onto these
profit. With box office sales, video on demand, DVDs and television licensing, not to mention
Each year the movie industry earns more and more money. It's not just that movies are gaining larger audiences, and more movies are being produced, but it's the fact that movie prices are rising. Ticket prices are at a peak, selling in some places for as much as $10.50 a pop. Not to mention when movies come out for sale, most VHS start at a record breaking $24.99, and most DVDs start st $39.99. Why are the movie bosses charging this much? Simply because they can. People would probably pay even more if they had to, and in my opinion they'll soon have to. American has adopted movies into their family, and they don't want to stop watching them.
In conclusion, whether watching in the theater or at home, people enjoy movies. Watching movies in the theater and at home shares some similarities, but it also has differences in cost and convenient. With the growth of technology, the viewing options are also increasing. People can watch movies in the theater, at home on TV, computer, iPad, iPhone, and even in the car. Movies always bring delight, fun, and pleasure whether you watch in the theater or at home. When you are making the decision of watching movies, you should think about pro and con before you make your decision.
In a movie theater, there are experiences that some will not have while at home and watching Netflix, such as the enormous screen, comfortable movie theater seating, and the theater speakers. Netflix can be used in a causal way with friends, but the main purpose of watching a movie is enjoying the experiences one can get from the movie itself. While at the movie theaters, the environment is completely different, because everyone is supposed to be quiet or else they risk being thrown out. The experience does not compare to the feeling someone gets when that intense scene appears, and they get immersed into the atmosphere of the theater. Movie theaters have the opportunity to give someone an unforgettable experience unlike Netflix, because the ambiance is truly unique and unmatched by anyone’s living