Preview

Economic Impact of Movie Theaters

Good Essays
Open Document
Open Document
1138 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Economic Impact of Movie Theaters
Heroes like Indiana Jones and Iron Man are conquering more than just movie villains this summer.
They're also conquering theater owners' fears that the flagging economy would keep movie fans away.
More theaters are instituting measures to help attract viewers despite rising gas and food prices. But it's not always enough, with some already raising admission and considering concession price increases.
Still, the outlook for movie houses during this latest economic downturn seems rosy because few movie fans seem to be taking a break from one of the nation's favorite pastimes during this summer's blockbuster season.
Nationally, summer ticket sales are strong and virtually on par with those from 2007. After the weekend of June 13, the 2008 year-to-date box office was $4.09 billion, compared with the record-breaking $4.1 billion box office for the same period last year.
Arizona box-office numbers were not available, but several theaters reported brisk ticket sales, with some predicting 2008 box-office numbers could surpass those from 2007.
They partly credit specials, such as early-bird tickets and other discount opportunities, for the healthy box office. But industry insiders say movies have long been a refuge for the masses during economic downturns.
A study done by the National Association of Theatre Owners in Washington indicates that box-office numbers increased during five of seven economic downturns since 1965, suggesting that movie attendance rarely decreases during a slowing economy.
"Generally, movies are an escape for people," said Patrick Corcoran, spokesman for the group. "If times are tough, people still need to get out and get away."
In comparison to other forms of entertainment, a trip to the movies is more affordable than tickets to a baseball game or concert, he added.
"We're still one of the best-priced values for your money," said Damon Rubio, vice president of operations for UltraStar Cinemas, which recently opened a theater in

You May Also Find These Documents Helpful

  • Powerful Essays

    “Movie Theaters - US: Consumer Trends.” Mintel. Mintel Group Ltd., Mar. 2011. Web. 6 June 2012.…

    • 7165 Words
    • 29 Pages
    Powerful Essays
  • Powerful Essays

    Redbox is in the movie rental business. The present state of economy may actually increase Redbox’s business as more people would rent a movie instead of going to the theaters or owning the movie. Redbox’s rentals are reasonably priced at one dollar a night making it very affordable to rent it even in this bad economy.…

    • 1397 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    1930s Movie Theater

    • 1024 Words
    • 5 Pages

    The movie theater industry flourished with the attendance to movie theaters soaring. It was said to be that essentially all the population was attending movie theaters during this decade. The most influential reasoning for this spark of film was the craving for an escape from the people, who needed desperately to get away from their own lives, and experience someone else’s live and feel other emotions besides anguish and sorrow. Although the population’s yearning for an escape pushed the film industry to the top, the government assisted with the Works Progress Administration’s New Deal programs and the film and movie theater companies benefitted the industry by creating unique and intriguing genres and appealing advertisements. Today’s society also reaches to movies to take a break from reality and movie theater companies still continue to advance and innovate advertisements and the theaters themselves to increase the attendance. Even though, the decade of the 1930s was overall filled with misery and discouragement, the film industry was a positive aspect of this time with its new funding by the government it strived with advanced genres and…

    • 1024 Words
    • 5 Pages
    Good Essays
  • Best Essays

    The trends in the movie rental industry are changing due to advancements in technological field. VHS tapes had replaced the giant discs years ago, which were in turn replaced by DVDs almost a decade ago. The new media, BluRay, seems to be the future of the movies, at least for the next few years. Besides walking into a brick-and-mortar building, consumers have many other choices, including pay-per-view, ordering movies online, or downloading through internet (with or without ownership rights).…

    • 1346 Words
    • 6 Pages
    Best Essays
  • Better Essays

    Buying power is low in this market because there is only a few distributors and the each are selling the same movies so the price they pay is relativity the same for each customer with very little price difference. The price of movies has gone up on the newer types of DVD’s ( blu-ray) but it has gone up for everyone, but the volume of movies sold by Redbox offsets that increase.…

    • 980 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Thus, in our opinion there is still plenty of room for the stock value growth, especially if we take into account the environment in which develops the activity of Cineplex (watch out that Canadians have the habit of watching at least one movie a week and that this market only 18% is occupied by the movie theaters industry) and its resources and capabilities, so we adopt the position to be…

    • 205 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    business: movie returns are hard to predict, production and distribution of movies is risky and…

    • 1012 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Movie disc rentals in 2009 grew to $8.15 billion from $8.11 billion in 2008.This shows no sign of decline either with less people buying DVD/Blu Ray then every before , the rental industry is…

    • 303 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The motion picture industry is a competitive, multi-billion dollar industry involving production crews, marketing crews, actors, directors, distribution companies, movie theaters, and movie rental companies. Four variables are commonly used to measure the success of a motion picture; these variables include the opening weekend gross sales, total gross sales, number of theaters showing the movie, and weeks in the top sixty of gross sales. Using a sample of 100 motion pictures from 2005 and numerical methods of descriptive statistics, one can learn how these variables play a part in the success of a motion picture.…

    • 1337 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    According to a Motley Fool article states, “ Last year (2015) was a record setter for movie theaters all over the country. (Rossolillo, Nicholas). In total, we saw that ticket sales surpassed $11 billion so it is safe to say that the theater industry is successfully moving forward and Cinepolis is definitely in the right market at the right time. While this is good timing, Cinepolis has quite a bit of competitors to exceed while continuing to expand in the United States. The top 3 dominant cinema companies are Cinemark, Regal, and AMC. These competitors are all over the nation and together have created fiscal year 2015 Revenue of about $8.93 billion. (Rossolillo, Nicholas).…

    • 212 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    The film industry accounts for one third of the market share. Action films are the number one grossed films. The target market consists of frequent moviegoers. The movie industry is a major contributor in the US economy.…

    • 767 Words
    • 4 Pages
    Good Essays
  • Better Essays

    PVR Case Study

    • 1747 Words
    • 8 Pages

    The primary source of revenue for any cinema hall has always been the sale of admission tickets. Advertisement, Food and Beverages, Royalty income and Convenience fee, etc. are other sources of revenue for a cinema. There have been attempts to diversify into other revenue streams to provide more options for out of home entertainment for the audiences. However, this also primarily depends on the sale of tickets because this model would work only when there are more number of people coming to the exhibition spaces to watch the movies. Therefore, the strategy of revenue generation of any cinema exhibition company would in final analysis take into account the number of halls and the audience footfall. To explain further, higher the number of halls, higher will be the company’s earnings and the higher number of people coming into the cinema hall would once again translate into higher revenue for the company. Table 1 illustrates the…

    • 1747 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Uk Cinema Market

    • 365 Words
    • 2 Pages

    The UK cinema market has traditionally proved fairly resilient to recessionary forces. However, with consumers being squeezed by a combination of higher taxes, low earnings growth and high inflation, they are being forced to look again at all areas of their discretionary spending and cinema is bound to come under threat.…

    • 365 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Movies have always been a part of popular culture, having impact on the arts, technology, music and even politics. Going to the movies today is still seen as “escapism” but the film and movie industry has since seen a tremendous change and culture from what it was in the 1970s.…

    • 1509 Words
    • 7 Pages
    Good Essays
  • Better Essays

    IMAX Larger Than Life

    • 3855 Words
    • 111 Pages

    To begin with, IMAX happens to be in three different industries: Photographic Equipment and Supplies, Motion Picture and Video Tape Production, and Motion Picture and Video Distribution. Obviously, the demographic segment relevantly applies only to the Motion Picture Exhibition industry because looking onto the demographics of the other industries is completely irrelevant. In this paper, I will mainly concentrate on the exhibition industry unless it is relevant to apply the theory to the other industries. However, I will explicitly mention if I do so. According to the IMAX case, the audience can be broken down to three categories. The 12-24 year olds represent 38% of admissions and they also happen to render 41% of the movie attendance frequency. The 25-39 year olds follow in representing 29% of admissions (IMAX p.10). Although the case does not provide statistics for the third category, the article depicts that the 40-59 year olds, the aging baby boomers, represent around 25%…

    • 3855 Words
    • 111 Pages
    Better Essays