Summary Golden Village was initially the only cinema located at the West of Singapore. However, it is now facing competition from two new cinemas, Shaw's Cineplex and Cathay Cineplex, due to the opening of Jcube and Jem. To the moviegoers, it is a good thing as they have more choices. Consideration such as the price, comfort, cleanliness, quality of the sound and image and range of movies provided will determine which cinema the patrons will visit. On the other hand, the three cinemas strive to provide the best cinematic experiences for their customers in order not to lose out in the competition. Competitive situation of the industry The cinema industry in Singapore is dominated by a few large firms which include Cathay Cineplexes, Golden Village, Shaw Theatres and Filmgarde Cineplexes . All the cinemas are air-conditioned and are facilitated with comfortable seats with spacious legroom. The movies screened in each cinema are also similar. The cinema operators do not engage in price competition and hence the prices of the movie tickets are generally similar across different cinemas. They are basically charged based on the types of movie and the day and time of the week one watch a movie. The cinema operators often engage in non-price competition to capture more market shares. With the increase in competition, the cinema operators set up premium theatre hall and provide different services to better differentiate themselves. For example, Golden Village’s Cinema Europa screens international films which usually are not shown in Singapore. Shaw’s IMAX's Digital Theatre System has superior image and sound systems which provide moviegoers with immersive experience (Shaw, 2012). Cinemas have also come up with different promotion plan... ... middle of paper ... ...endix E, the cinema operators maximize their profit where marginal cost equals to marginal (MC = MR) i.e. 200 units in total. This output must then be divided between the two markets so that MC=MR in each market. The profit-maximizing price in each market will be given by relevant demand curve. Thus, in market A, 100 units will be sold at $9, and in market B, 100 units will be sold at $7 each. The market demand curve reflects the combined willingness and ability of many individuals to buy. Some of the individuals are willing and able to buy the movie ticket at prices higher than the market price while some are willing and able to buy at lower prices. The cinemas are able to increase total profit by selling their movie tickets at the price each individual consumer is willing to pay as they can capture part of, or the entire, consumer surplus as additional revenue.
Movies today are extremely expensive to make and are typically financed through either film studio contracts or from investors willing to take a risk. In order to be successful, movies need to be marketed and distributed either under contract by the film studios or by companies that specialize in such services. The aspects of financing, marketing and distribution of films have changed between the studio and independent systems over the years as the evolution of the film industry took place.
Paramount, one of the big five Hollywood studio corporations, controlled the most amount of theatres in the United States during the 1930s and 40s. This meant they had an advantage when the economy in the US turned around after the great depression. This being said, many more factors come into play when defining to what extent the studio is a typical representation of a major Hollywood studio corporation in the 1930s and 40s. In this essay I will be going in depth into what extent Paramount is a representation of other key studios in Hollywood in the 1930s and 40s. I will be discussing how Paramount’s methods as a corporation such as exhibition, distribution, star system and genre to see how it is a typical representative of a Hollywood studio corporation. I will be using material such as Richard B. Jewel’s The Golden Age of Cinema, Hollywood 1929 – 1945 to go into detail in explaining my points.
Small, Pauline. (2005) New Cinemas: journal of Contemporary Film Volume 3, Queen Mary, University of London
Due to the various options of distribution channels their prices vary. Consumers take that into consideration when purchasing their products.
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.”
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]
Fu, Poshek, and David Desser, eds. The Cinema of Hong Kong. Cambridge, United Kingdom: Cambridge University Press, 2000.
No single firm can influence market price in a competitive industry; therefore a firm’s demand curve is perfectly elastic and price equals marginal revenue. Short-run profit maximization by a competitive firm can be analyzed by comparing total revenue and total cost or applying marginal analysis. A firm maximizes its short-run profit by producing that output at which total revenue exceeds total cost by the greatest amount.
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.
Fifteen years ago, South Korean cinema was in precipitous decline. It was facing deadly competition from Hollywood as import barriers were dismantled, and had almost no export market. Today, South Korean cinema is widely considered the most successful and significant non-Hollywood cinema anywhere in the world today. It is successful both in the domestic market, and internationally. This essay sets out to understand this phenomenon. First, it attempts to trace South Korean cinema’s comeback story. I feel a need to do this because I find that so many of my South Korean friends and colleagues are reluctant to admit this, or focus solely on the problems the industry is facing in the future. There may be worries about the future and there may be “ifs” and “buts” about the present state of the South Korean film industry. But we should start out by acknowledging its success.
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
The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good. Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods.
The second market structure is a monopolistic competition. The conditions of this market are similar as for perfect competition except the product is not homogenous it is differentiated; thus having control over its price. (Nellis and Parker, 1997). There are many firms and freedom of entry into the industry, firms are price makers and are faced with a downward sloping demand curve as well as profit maximizers. Examples include; restaurant businesses, hotels and pubs, specialist retailing (builders) and consumer services (Sloman, 2013).
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.