MGMT-780-623 - Week 3 Assignment
The Movie Exhibition Industry: 2011
SWOT Analysis
Strengths
Internal – new digital technology with 3D optional feature, buildings (whether rented or owned) are large (most are multi and megaplex style)
External – leverage in both the concession industry and the distribution industry Weaknesses
Internal – rely on concessions and advertisements, concession pricing, experience largely the same as every competitor
External – content, consumer income, marketing of movies relies on studio production companies, split sales with distributors
Opportunities
Internal – content choices, experience, concession options
External – growing middle class, rebound from recession Threats
Internal –
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Strategically choosing content that people can identify with or that tells a particularly interesting or horrific true story can do just as well as the big Hollywood productions. Independent films are becoming increasingly more popular and often rival mainstream movies at the box office when they are coupled with decent funding and distribution.1 The Indie Film Movement of the 1990’s is still strong and many artists seek to escape from the control of studio production. This means more content is available than ever before and this means more choices for the exhibitor.
A second way for a company to create a competitive advantage in the movie exhibition business is to offer an outstanding customer experience. Customer experience is something that is intangible and cannot be easily duplicated by competitors. Let’s examine the current experience for a customer in a movie theater. The ticket price is high, the concession offerings are few and over-priced, the seats are uncomfortable, the advertisements before a movie can sometimes last 15 or 20 minutes, the other patrons as well as the staff are often rude, the glow of cell phones is almost impossible to ignore, and most movies are all special effects with nearly no substance. Why on earth would anyone pay to go to the movies? I have not paid to go to the movie theater in several years. Not because I can’t afford to go, but because of the terrible experience I have while I’m there. For me, spending
My analysis will cover competition from substitutes and the change in buyer behavior and demographics. I will use the five forces model of competition and a SWOT analysis along with other sources of analysis. The information and recommendations that follow will provide you with the insight and building blocks to compete in the movie exhibition industry.
This essay explores the popularity of Australian film, both locally and internationally and asks the question: Is there a crisis in the Australian Film Industry? This essay will go through the current issues the Australian Film Industry and will demonstrate examples of those problems.
The cinema industry in Canada is an oligopoly with only a few firms producing most or all of the output. In an oligopoly, it is important for companies to closely watch the competition for new technologies, pricing, production, product changes and innovations, and other developments (Althouse, Allan, & Hartt, 2017, p. 38). Two companies in the Canadian industry combine to have 99% of the market share, with Cineplex having 78% and Landmark Entertainment having 21% (Dule, n.d.). Cineplex has 162 operating movie theatres in Canada compared to the 71 theatres of their direct competitor Landmark Entertainment (Dule, n.d.). Cineplex’s strength in the market limits the number of companies within the industry, and therefore entry can be difficult with the “already established relationship between Cineplex and most film producers” (Dule, n.d.). Competition in the cinema industry depends on comfortable seating, overall theatre quality, good
Concession sales and ticket sales are the two biggest sources of revenue for a movie theater but the exhibitors has limited control over both revenues and profits because those two are important aspects. Attendance allows for profitable sales of concessions and advertisements, but there are significant caps on the volume of concession sales per person, and selling price seem to have reached a maximum. Both continue to increase in cost to the consumers and may have reached a price point that is starting to drive consumers away from going to see a movie.
is growing outside of the USA. This kind of growth includes the large countries that previously specialised in film production. For countries such as China and India, the annual release of films has grown progressively for the past decade, followed by a forced growing purchase power and investments in cinemas (Lorenzen, M. 2008). The American film industry must, in a way, watch its back. Especially when the amount of small film countries, such as Denmark and Switzerland, has grown. The smaller countries have attracted attention by not only up-scaling their production, but also winning market shares from Hollywood. Other new filmmaking countries are also on the rise, with Korea, Mexico etc. joining the market, who bring cheaper production technologies to their advantage (Lorenzen, M. 2008).
Cineworld is in a very competitive market that consists of various cinema chains who all want to be the best and provide the best service. Cineworld faces harsh competition from: Vue, Odeon, Pathe and Showcase, all big cinema chains with their own unique way of delivering their service, this table illuminates where Cineworld stand in comparison to their competitors in terms of size (see appendix 2). The cinema industry is reliant on customers spending their disposable income on watching the latest movie, however with the arrival of indirect competition in the form of online streaming sites such as ‘Netflix’ and illegal but easily accessible sites such as ‘Putlocker’, films are easier to watch now more than ever, even in the comfort of your
The producers will develop a test and the audience will tell the producers whether it is something they want to see or they are not going to see. This can affect the next text to be produced in an attempt to conform to the audience demands. Looking at the development of different types of genres and the development of films within the same genre, it’s possible to look at similarities and differences and identify changes in society and audience ideologies and tastes.
Concession sales and ticket sales are the two biggest sources of revenue for a movie theater. Both continue to increase in cost to the consumers and may have reached a price point that is starting
The film industry has always been somewhat of a dichotomy. Grounded firmly in both the worlds of art and business the balance of artistic expression and commercialization has been an issue throughout the history of filmmaking. The distinction of these two differing goals and the fact that neither has truly won out over the other in the span of the industry's existence, demonstrates a lot of information about the nature of capitalism.
The costs, methods of distribution, and themes of Hollywood and Nollywood films reflect strongly their target audiences; how the target audience affects the production of a film and how the production of a movie is designed to capture a specific
Two main categories exist for American films: Blockbusters and Independent Films. Blockbusters are known for excessive and expensive productions while Independent films are known for having an in-depth narrative. Blockbusters are movies that, whatever the cost, have exceptionally large box office receipts (Monahan 494). An independent film also known as an Indie Film is a film produced outside the standard studio system and distributed by independent agencies. Because of the marketing efforts put into blockbusters, they are famous before they are released. On the other hand, Indie Films are many times unknown productions that typically find popularity after being released.
As independent films gained a foothold in the 1950’s, Hollywood was struggling. This is when Hollywood looked towards Blockbusters, a term used in theater which is a film that is anticipated to make high revenues, but uses a large amount of money and resources to achieve this. This is the antithesis of the independent film where it was often difficult to secure funding, they needed to rely more on their story and the videography more than on wow factor or high paid actors to draw crowds in to the theaters. Independent films struggled until the 1980’s where it got a boost thanks to some talented filmmakers that made people want to watch the films
In this paper, I will discuss the cost and management accounting considerations in the motion picture industry by addressing the following issues: 1. The Value chain of the motion picture industry; 2 The competitive landscape in the motion picture industry using Porter’s five forces analysis; 3 The notion of net profit in the motion picture industry and cost allocation considerations; 4. Key elements to consider when conducting a cost variance analysis for the motion picture industry. The Value chain of the film making process is production, marketing, distribution, marketing, and exhibition. Production has several sub group including development, pre-and post-production alongside production.
IMAX is the film format and projection standards created by IMAX Corporation. This essay provides an insight into the status quo of IMAX, and engages in 3 questions.
The industry is highly competitive. The existing investors will prevent the introduction of new facility for watching movies.