Global Movie Theater Industry Analysis

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Global movie theatre operators, present scenario and analysis

Going for a movie is a convenient and affordable form of out-of-home entertainment as compared to other alternatives of entertainment such as theme parks, concerts and sporting events. However, in the past few years with the increase in the internet penetration, especially in the developing economies and use of internet over smartphones has led to a surge in demand for online digital content. The streaming platforms like Netflix, Amazon Prime, etc. have capitalised on the digital opportunity and are offering a broad range of TV series and movies online at a comparatively cheaper rate than out-of-home movies. In the current blog, Televisory tried to analyse the key operating parameters
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The main reasons are internet penetration, the growth of online streaming platforms like Netflix, Amazon Prime and Hulu, which gained market share in the above regions and this impacted the number of movie-goer. Furthermore, rising use of mobile phones supported the growth of these online services, this negatively impacted the movie industry in North America and EMEA. For instance, Netflix’s revenue grew to USD 8,830.7 million (2016) from USD 150.8 million (2002) at a CAGR growth of 33.7% (the firm derives more than 60% of its revenue from content steaming in the US). Thus, over the past decade in North America, the average ticket price rose continuously, this along with increasing number of internet users impacted movie-goer…show more content…
Therefore, once the window period is over, a movie is available on other channels such as VOD (Video On Demand), pay TV, DVD, etc. Source: Study of Nelson Granados, Associate Professor at Pepperdine University, California, published at forbes.com and DVD release report

In order to compete with challenges thrown by alternative movie distribution models, the movie theatre operators started focusing on new and innovative technologies with enhanced movie experience for the sake of attracting viewers. A movie like "Iron Man" viewed on a giant IMAX screen amongst a crowd is an experience which cannot be created in a home. Sian Heder, Hollywood director once said in a statement to the New York Times that one always wants a film to be shown on a big screen with perfect sound and the best projection. Further, a revolution in the three-dimensional stereoscopic film (3D movies) has given a new direction to the cinema industry. 3D movies quickly increased their space in the movie industry, especially after the release of James Cameron's 3D movie "Avatar" in 2009. This revolutionised the movie-watching experience in theatres. Its direct impact has been seen

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