...Comprehensive Exam Case Study Fall Semester: 2012 / 2013 The Movie Industry in 2008 (Case A & B) MBA Student: Waseem Hasan Ismail Submit to: TAGSB Administration 27 February 2013 Table of Contents Introduction 3 The Movie Industry in 2008 (Case A) 4 PESTEL Analysis – External Environmental 4 Porter’s five Analysis 4 Profitability Model for movie theaters 4 Key strategic issues facing movie theaters 4 Strategic actions that exhibitions might consider 4 The Movie Industry in 2008 (Case B) 4 Outlook for the movie industry improved by 2011 4 Strategic actions might exhibitors take in 2011 and beyond to improve their situation 4 References 4 Introduction The movie industry had benefited from the technology development such as the digital camera and digital screens in the sense of suspense and excitement. However, this technology had become a big challenge to the management in the motion picture industry value chain. This technology encourages the moviegoers to experience watching a movie at house with the same picture’s quality resolution and the sound’s effects as the theaters providing for audiences. The management dilemma is at maximizing their revenue and profit which falls into two difficult components; the uncontrollable and unpredicted revenue and limited profit. Because of the ticket price exposed to competition and each chain is serving different geographic market, thus the ticket price can’t be increased more. Also, the revenue streams...
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...Case Study Movie Exhibition Industry - Research Papers - Kimsaline 10/9/12 2:01 AM Case Study Movie Exhibition Industry Strategic Analysis of Movie Exhibition Industry By: Kim Saline February 24, 2010 Objective: To provide an analysis and make recommendations to increase revenue in the movie exhibition industry. Overview: Ticket sales for movie theaters are at their lowest point since 1996. With the core demographic group expected to grow slower than the US population and with technological advances growing at speeds faster than the industry can keep up, ticket sales will continue to decline if the current business strategy continues to be followed. 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 to drive consumers away from going to see a movie. With the advancements in home entertainment systems consumers are investing thousands of dollars into their own home viewing systems. They have several options to stream video content into the comfort of their own homes. Theaters have implemented digital content and 3D but it’s not enough to keep up with the competition of technology. My analysis will give you information on the threat of 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...
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...Environment Analysis The motion picture industry value chain consists of three stages: studio production, distribution, and---the primary focus here---exhibition. When analyzing the external environment of the movie exhibition industry, we will look at the competitiveness of existing firms, threat of new entrants, strength of suppliers, strength of buyers, and threat of substitute products or services. Competitors Four companies dominate the industry: Regal, AMC, Cinemark, and Carmike. There is a great deal of competition between these four companies, but it all comes down to how far the theater is from home, convenience of parking, and proximity to restaurants. These factors play an important role on the competitiveness of movie exhibitors because there is not much differentiation between what each theater offers. The prices are relatively stable from one theater to another, generally, the same movies will be showing, and most theaters offer the same concessions and services. Theaters must find a way to differentiate themselves from their competitors with the look and quality of the theater and the quality of technology used. Threat of New Entrants There is not really a threat of new entrants in the movie exhibition industry unless a new entrant targets a niche market that has not been well served. Startup costs are very high and most new entrants cannot compete with the four major competitors that already dominate the industry. There are generally enough existing theaters...
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...Why the decline in cinema exhibition and increase in video streaming A key creative industry in Australia is cinema exhibition and in most recent times is the video streaming industry. Film has come far in Australia from its origins of the first silent film produced in 1906 by the Tait brothers, The story of the Kelly Gang (Australia.gov.au 2015). Cinema in Australia followed the original format of viewing movies in drive ins. The movies of the time followed Ozploitation film genre or as writer/director Quentin Tarantino likes to refer to it as the genre of “Aussiesploitation” (Grindhousedatabase.com 2015) such as Razorback (1984) and Mad Max (1971). This genre was created by the Australian film industry and the only criteria for a film to...
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...position in this industry? Support your answer by conducting PESTEL and Five-Forces Analyses. • How could a company operating in this industry react to the identified challenges? • How does the structure of the industry affects profits? The Movie Exhibition Industry 2013 IT IS APT that 2012’s top-grossing film was The Avengers, because movie studios and exhibitors sought to avenge a dismal prior year at the box office. Domestic box office receipts climbed 6 percent from 2011 to a record—setting $10.8 billion in 2012.‘ Three films—The Avengers, The Dark Knight Rises, and Skyfall—grossed more than $1 billion each in global ticket sales (see Exhibit 1). Behind the scenes, the success, even the fundamental health of the exhibition industry, is far less clear, however. Consider these contradictions: - Domestic ticket revenues grew 6 percent in 2012, but that volume ranks just 13th since 1980. The 1.364 billion tickets sold is down 13 percent from the most recent high in 2002 of 1.575 billion (see Exhibit 2). 2012‘s record revenues resulted from ticket price increases, not more attendees. At $7.94, the average ticket price has risen 24 percent since 2005. But over the long term, prices keep pace with inflation, raising questions about the creation of differentiated value (see Exhibit 3). - The long-term per-capita trend is negative. In 2012, the average number of films seen per capita was 3.9.2 In 1946, the peak of moviegoing in America, the industry sold four billion...
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... is the trend in attendance at movie theaters? Why is this problematic? What explains this trend? • What determines profitability for exhibitors? Consider revenue components, expenses, and the controllability of these by managers. • What is the trend in profitability? What explains this trend? • Do trends in the general environment and industry structure affect profits? The Movie Exhibition Industry 2013 IT IS APT that 2012’s top-‐grossing film was The Avengers, because movie studios and exhibitors sought to avenge a dismal prior year at the box office. Domestic box office receipts climbed 6 percent from 2011 to a record—setting $10.8 billion in 2012.‘ Three films—The Avengers, The Dark Knight Rises, and Skyfall—grossed more than $1 billion each in global ticket sales (see Exhibit 1). Behind the scenes, the success, even the fundamental health of the exhibition industry, is far less clear, however. Consider...
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...BUS4040 2013-2014 Semester 1 Group Assignment 2 (Session 1) Oct 28, 2013 Read “The Movie Exhibition Industry: 2011” (Case 16 in text) and answer the following questions: 1. Assess the situational environment for the movie theater: a. Why do people go to the movies? How has this changed? b. What is the trend in attendance at movie theaters? Why is this problematic? What explains this? c. What determines profitability for exhibitors? Consider revenue components, expenses, and the controllability of these by managers. What is the trend in profitability? What explains this? d. For 1A-C, which of these are symptoms? Which are causes? What is the key strategic issue facing movie theaters? What are three alternatives (i.e., new actions / initiatives) that exhibitor’s might consider to resolve this strategic issue? Which would you recommend? What did theater owners pursue for alternatives? Has their situation improved by 2010? What alternatives can exhibitors take in 2011 and beyond to improve their situation? What are the opportunities and threats for the exhibitors to expand into China? 2. 3. 4. 5. 6. Instructions on the assignment: • • • This is a group assignment and is due on Nov 6. There will be a discussion on the answers for each question on the same day the assignment is due. The following groups will present the answers and lead class discussions for the questions as follows. The time allotted for each group is 15 minutes each including Q&A). Group “April” - Question...
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...Entertainment Exhibition industry Indian media and entertainment industry is one of the fastest growing sectors recording a growth of 12.4 per cent and projected to reach Rs 1052 billion by 2013 • India is the highest producer and consumer of filmed entertainment • The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as well as second and third tier cities. • The South Indian cinema industry is pegged at Rs 17.3 billion with the domestic theatrical revenue stream being most dominant, accounting for nearly three-fourth (around Rs 12.6 billion) • The four southern states have 50 per cent of the theatres in India and almost 25 per cent (1,200 theatres) of the 5,000 theaters in the south are digital • Growth opportunities galore as some of the world’s largest multiplex chains are foraying into India Categories of services Offered Cinema exhibition industry: The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as well as second and third tier cities. Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such as malls, are driving growth of multiplexes in India. The report provides a snapshot of the market including the two segments multiplexes and single screen cinemas. An overview gives a quick picture of the market with estimated market size, growth rate and...
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...Upgrading Technologies: Creates a Real-Life Movie Going Experience May 8, 2012 Abstract AMC Theatres began upgrades in their theatre technologies in 2009. Their project objective was to gain status as the number one movie exhibition industry in the world. The scope of the project would upgrade all of their facilities to incorporate 3D technologies, premium viewing, and state-of-the-art sound systems. This project would immerse the movie viewer into a real-life experience, thereby enticing the viewer to return satisfied, and become a steady patron of the company. Their estimated timeline for completion on technology upgrades for its remaining theatres is 2014. AMC Theatres, which stands for American Multi-Cinema was founded in 1920 when a father and his two sons purchased the Regent theatre in Kansas City, Missouri. AMC is second only to Regal Theatres, as a leading global movie theatre chain. The company gives credit to one particular son named Stanley Durwood. He believed that playing a multiple selection of movies in one movie house would in-turn lead to more guests, and more profits. This simple idea revolutionized the movie exhibition industry and became a blueprint for the industry. The concept for the movie theatre was born. It is this kind of inspiration that has encouraged the AMC Corporation to introduce more industry firsts. AMC was looking for a way to bring in new customers and refresh old patron relationships. Movie sales had begun to slump in the early 90’s...
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...on our fundamental analysis including industry analysis, company analysis and financial analysis, the company is a ‘HOLD’ with a positive outlook. Approach & Methodology Industry Research: We identified the main competitor and key drivers and trends in the industry. Company Research: We gathered information of the company historical performance and market positioning vis. as vis. its peers. Company projections: We developed a full three statements financial model to forecast the company’s operation based on the industry analysis and company’s track record. Valuation: We have used APV approach to value the company as company’s capital structure keeps changing over time. Furthermore, we also calculated the implied valuation using trading and transaction multiples. Industry Overview Resilient industry The US movie exhibition industry is considered a relatively defensive industry with low revenue volatility. Main reason for this is that the American customers’ willingness to go to the movies is less correlated with the economic cycle. People go to the movies both in the good times and in the bad times. Thus, box office performance can vary widely quarter to quarter due to films released, but is generally steady in longer term (see figure 1). The box office performs in weak macro environments because it is one of the cheapest forms of out-of-home entertainment, such as sports, concerts, vacations, and etc. (see figure 2). Movie theaters continue to draw more people...
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...Management MBA PROGRAMME MARCH 2011-03-17 ASSIGNMENT TWO; ‘HOW INDUSTRIAL FORCES MAINLY TECHNOLOGICAL CHANGES HAVE KILLED THE CINEMA INDUSTRY.’ PREPARED BY ANNE. N Introduction The cinema industry in is one of the biggest recipients of the negative impact of industrial changes. Currently the industry is literally falling. Opinions may differ on the exact cause of downfall of the industry. Cinema owners, contractors and spectators were unanimous in their view that, changing buyer life styles, cable network, complaints of obscenity, costly tickets, mobile, internet, computers, DVDs and dish antenna have together contributed to the decreased number of cine-goers in recent years Most cinema halls’ property has been bought or is hired by Pentecostal churches in the country which is now redeveloping the buildings as a worship centers’, others have been converted to shopping exhibitions for clothes and mobile phones. a) Technological changes The range of products that are available for consumers to buy is constantly changing. Consumers of only 40 years ago could not even dream of personal computers the internet, mobile phones, quality sound home theatres and even air conditioned cars just to mention but a few. By researching into and developing new products, some businessses have created huge new and profitable markets. Some examples that have negatively affected the cinema industries are; 1. The digital...
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...Management Discussion and Analysis Section should be read in conjunction with the financial statements and notes to accounts for the period ended 31st March, 2012.This discussion contains certain forward looking statements based on current expectations, which entail various risks and uncertainties that could cause the actual results to differ materially from those reflected in them. All references to “PVR”, “we”, “our”, “Company” in this report refers to PVR Limited and should be construed accordingly. to increase. (Source: FICCI- KPMG Indian Media and Entertainment Report 2012) 1. Largest Industry - The Indian film industry is one of the largest globally with a history of steady growth. With films being the most popular form of mass entertainment in India, the film industry has witnessed robust double-digit growth over the past decade. Industry Structure & Development 2. Demographic scenario supports long-term fundamentals: Due to favorable demographics (75% of the country’s population is below the age of 35) and economic conditions in India, coupled with consumers willing to spend more on a variety of leisure and entertainment services, the filmed entertainment business is set to grow in the years to come. 3. Under screened market: When compared to global benchmarks such as USA, UK, France, Spain, India is a significantly under screened. Mumbai and Bangalore have a higher number of screens per million at 23 and 21 respectively...
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...Market feasibility overview Hempstead, NY June 2012 MOVIE THEATRE Overview Members of Renew Hempstead have suggested and shown strong support for development of a movie theatre in downtown Hempstead. Renaissance Downtowns engaged our firm to explore the potential market viability of a movie theatre. This brief summarizes our findings. In comments on the Renew Hempstead website, members recommended the following possible characteristics for a downtown movie theatre: Small community theatre Smoke free Locally owned, not a chain Security Collaborate with Hofstra Not too many seats in one theatre Host student films, documentaries Stage for open mic night Family nights Alternating screen Should have regular snacks Solar power Free wifi Reduced ticket price for bringing in Mini arcade inside recycled things Lounge area Recycled popcorn bags as well as cups Stores inside the movie theatre Every fifth visit is free A little bar for older people Major motion ...
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...MSc International Business and Management 2011/2012 Module: Global technology and operations management - Assignment 1 Introducing Global Technologies The role of World Exhibitions Student: Milica Andjelkovic 4003/2011 Mentor: Prof. dr Maja Levi Jaksic I Introduction • • Technological development and globalization Strategic technology management II Historical Role of World Exhibitions in the introduction of new technologies • • World Exhibitions as the first steps of Globalization in the 19th century Shaping the Modern Image of World Exhibitions in the 20th century III Case study Aichi 2005- Shanghai 2010 • • • Search for sustainable development Technologies development in the 21st Century Expo 2005 Aichi Japan – “Nature’s wealth” Expo 2010 Shanghai China – “Better city better life” IV Conclusion • An overview of the technological rather than commercial meaning of World Exhibitions and future trends V Literature 2 Technological development and Globalization Technological innovation is, without doubt, the major force for change in modern Society - a force of knowledge (Betz, 2011). Technology and organization development have always been focusing on finding relevant connections between social, historical and technological achievements within one specific period of time, therefore specific technological findings have marked and even named entire periods in human evolution: from the stone age, through iron age and all the way till industrial revolution...
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...sustain the economy and cash flows .While investigating these aspects of integrated destinations, it is also very important to consider the standard features and benefits. The information used will depend consisting of online website and individual knowledge. The intention of society dissection is to specify and provide ways to enhance the life of the citizens and the socio-economic requirements of the community (Board of Investment, 2009). Gaming areas, restaurant, hotels, retail shopping and other tourist attractions are consisting to be one: Integrated resort. When the term “IR” appears, that means gambling or casino would refer to gaming area exclusively. Das (2011) believed that IR is expected to advantage the economy from the investment, construction spending, draw in more tourists and support the services industry of the island economy. Integrated destination is features about world-class accommodation, bar, conventional facilities, restaurants, hotels, shopping...
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