The Movie Exhibition Industry

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Table of Contents

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The Motion Picture Industry Value Chain

Could the motion picture industry add value to their productions if they concentrated on only one venture? Most of the distribution in the market is done by the divisions of major studios. The studio’s investments span across various major fields and this makes the management of the investment a great challenge.

If the studio’s concentrated only on movie production, the quality of their productions would increase. They would channel all their energies into creating new movie ideas and this would definitely appeal to their target audience.

The Business of Exhibition

Could movie exhibitors find other ways of adding value to the customer while gaining revenue? Most of the profits made by exhibitors are from the sale of concessions. The food served at the movies has gradually increased in price but the quality has remained the same. If movie exhibitors diversified their food options and incorporated alcohol in their drinks options, their high food prices would be justified and the customer base would be increased if they added food options for vegetarians.

The Theater Experience

Now that people can watch movies in their own home, what can movie exhibitors do now to gain that competitive advantage over home theatre systems and offer customers something that their home theatre system cannot? In order to stay in business, the theaters can open smaller branches closer to the living areas so that the people do not have to go through long drives to get to the movies. They should be placed around malls where a lot of people frequent for necessities like food. This would attract customers who had gone to the mall for other reasons and have time to spare.

Raising the Exhibition Curtain in 2011 and Beyond

How can exhibitors ensure that they retain their customers with the current economic recession? The exhibitors are overcharging the customers and this has reduced the number of people willing to go to the movies. The exhibitors should be considerate when they set their price. The customers understand a small price hike due to recession but extreme price hikes as have been witnessed, are affecting the number of people going for movies.

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Is the lack of competition from new investors causing these companies to deliver low standard services?
How much more do the exhibitors need to do in order to maintain the theater experience do they need to shift to a completely different type of service that no other entertainment venue can offer for that same price?
How can the theaters survive the hard economic times while ticket prices are rising, the number of people going to movies is dropping, and the numbers of theatres are increasing?

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The motion picture industry seems to be lacking competition from new investors. If there were more studios producing movies, there would be more ideas being made into different movies. This would attract more movie goers. Similarly, if more companies invested in exhibition, the competition would force the exhibitors offer better services. For exhibitors to create a great experience for movie goers they can improve the food they sell and more food options availed.

The people working at the movies should also be polite to the customers and treat them well. For theaters to still make a profit without overpricing the tickets, they could reduce the number of staff they have by introducing computerized ticket sale point and drink buying points. They could save on the workers salaries and still run a profitable and efficient business.

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