...The movie exhibition industry holds one of the largest retail spaces after shopping complexes/malls. The greatest opportunity of this industry lies here. Being an industry that has been constantly adopting new technology and trends, I am of the opinion that leveraging this retail space not only for advertising space (standees, posters, etc.) but also for enhancing the cinema experience, would make profits soar in the long term. By having Bowling centers, Billiards tables and other in-house sporting activities, it lures the young adults and children alike. Introducing a diversified alternate content during the weekdays and off-peak hours would be another mechanism of generating greater profits. The experience of being at a movie theatre is the sole differentiator and maximizing it without adversely affecting the consumer interests should be the goal of exhibitors. The external threats to this industry lies in the very hands that feed it – the studios. Studios are poaching that sacred territory of exclusivity by introducing Video-On-Demand and reducing the gap between movie and DVD releases. This could be attributed the ever changing needs of the consumer. The rise of streaming options such as Netflix and Hulu have further bitten into the exhibitor’s share of the pie. The barriers to entry in the movie exhibition industry are relatively high. The major players, by their sheer number outpace any new entrant. The profitability levels also depend on the economies of scale here....
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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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...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 # 16: The Movie Exhibition Industry 7/14/2013 It doesn’t take intense or in depth analysis for one to conclude that the movie industry as a whole is heading on a negative path. This negative growth trend is heavily influenced by a number of contributing factors which individually impact the various components of the movie industry value chain but more specifically the exhibitors. Throughout this paper I will be focusing on improving the future strategic plans of the exhibitors while assessing their contribution to this decline and what they and their counterparts could do in order to maximize future revenues and profitability. There are several external factors contributing to the slowdown of this giant industry (technology being the biggest one), we will try to address the key factors throughout this paper. Let us start with the production studios, which in my opinion are the dominant party in this relationship and therefore will not be suffering the most impact in the next decade. The exhibitors on the other hand will be subjected to the most detrimental recession due to their shrinking targeted demographics and the lack of assistance from their suppliers (the studios). Starting with the root of this problem, the shrinking market, which can be solved by realigning this industry’s business model in order to target a wider frame of the population coupled with a more mutually beneficial alliance between the studios and the exhibitors since currently the boat is mainly...
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...MGMT478Five Forces Exercise A Horror Show at the Cinemaplex Assignment: Based on the case “The Movie Exhibition Industry 2013” in the McGraw Hill article, answer the following questions using concepts and frameworks we have discussed in class. Answers should be completed in a short five page write-up using the templates provided below. Short answers / bullets are acceptable; however, you must include some level of detail / information regarding the trends and analysis you are including independent of the bullet points. The hard copy write-up is due by the start of class on February 25th. We will be having a discussion based on this assignment in class. It would be helpful if each group member had a copy of the finished assignment in front of him/her. Please provide a cover page that includes the Assignment name, “Mgmt 478”, Section number (006, 007, 008, 300) and the group members’ names. The cover sheet is the only page that includes this information. Also each page must have a page number. All pages must have a staple. Failure to follow any of these formatting issues will incur a grade penalty. All words must be spelled correctly and all sentences must have correct grammar. 1a) Perform a general environment analysis. What are the relevant trends in the environment that are affecting the movie industry by the 5 segments listed below? Demographic Socio-cultural Economic Technological Political / Legal ...
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...COMPETITION CONCERNS IN FILM INDUSTRY 2013 A RESEARCH PROJECT ON COMPETITION CONCERNS IN FILM INDUSTRY UNDER THE GUIDANCE OF DR. K.D. SINGH DEPUTY DIRECTOR (LAW) COMPETITION COMMISSION OF INDIA BY TULIKA SINGH, VTH YEAR STUDENT OF B.A. L.L.B. (HONS.) AT CHANAKYA NATIONAL LAW UNIVERSITY, PATNA COMPETITION COMMISSION OF INDIA Page 1 DISCLAIMER COMPETITION CONCERNS IN FILM INDUSTRY 2013 This project report has been prepared by the author as an intern under the Internship Programme of the Competition Commission of India for the period of one month from 7th January 2013 to 31st January 2013, for academic purposes only. The views expressed in the report are personal to the intern and do not reflect the views of the Commission or any of its staff or personnel and do not bind the Commission in any manner. This report is the intellectual property of the Competition Commission of India and the same or any part thereof may not be used in any manner whatsoever, without express permission of the Competition Commission of India in writing. COMPETITION COMMISSION OF INDIA Page 2 ACKNOWLEDGEMENT COMPETITION CONCERNS IN FILM INDUSTRY 2013 This research project is undertaken by me as a part of Internship programme of Competition Commission of India. Dr. K. D. Singh, Deputy Director (Law) at CCI guided me through this project. His invaluable inputs and suggestions are deeply acknowledged. Library Staff of CCI also helped me throughout the internship period...
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...It doesn’t take intense or in depth analysis for one to conclude that the movie industry as a whole is heading on a negative path. This negative growth trend is heavily influenced by a number of contributing factors which individually impact the various components of the movie industry value chain but more specifically the exhibitors. Throughout this paper I will be focusing on improving the future strategic plans of the exhibitors while assessing their contribution to this decline and what they and their counterparts could do in order to maximize future revenues and profitability. There are several external factors contributing to the slowdown of this giant industry (technology being the biggest one),we will try to address the key factors throughout this paper. Let us start with the production studios, which in my opinion are the dominant party in this relationship and therefore will not be suffering the most impact in the next decade. The exhibitors on the other hand will be subjected to the most detrimental recession due to their shrinking targeted demographics and the lack of assistance from their suppliers (the studios). Starting with the root of this problem, the shrinking market, which can be solved by realigning this industry’s business model in order to target a wider frame of the population coupled with a more mutually beneficial alliance between the studios and the exhibitors since currently the boat is mainly being steered by the studios. This could begin by varying...
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...PVR OPERATING MANAGEMENT CASE GROWTH What are the various sources of revenue for the company? You can get this from the Profit & Loss Statement which points to schedules 24 and 25. This schedule is available in i. Which source is the most dominant source for the company? : Income from sales of tickets of films ii. Which source is the growing the fastest? : Income from bowling is growing @ of 44 % and Income from show rental is growing @ 28% What are the various sources of cost for the company? i. Which source is the most dominant source for the company? : Other expenses and film hire charges ii. Which source is the growing the fastest? : Employee benefit expenses is growing at 18% and cost of trading is growing at 16 % What is COGS for PVR’s movie exhibition business? In other words, what is it that the procuring as raw material, adding value to it, and re-selling? Do not write the number here, just the concept. COGS usually include lease expense of multiplex, labour cost, film distributor share , food expenses , entertainment tax Tied to COGS is inventory. Crudely, inventory is unsold “COGS”. What is the inventory for PVR’s movie exhibition business? Again, do not write the number here, just the concept. Major inventory for * Inventory of seats/floor: Seat/handling unit is not filled does not lead in revenue. * ECONOMICS Inventory of films: Film/Service which is not screened in movie will not lead in revenue. Economies of...
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...PVR OPERATING MANAGEMENT CASE GROWTH What are the various sources of revenue for the company? You can get this from the Profit & Loss Statement which points to schedules 24 and 25. This schedule is available in i. Which source is the most dominant source for the company? : Income from sales of tickets of films ii. Which source is the growing the fastest? : Income from bowling is growing @ of 44 % and Income from show rental is growing @ 28% What are the various sources of cost for the company? i. Which source is the most dominant source for the company? : Other expenses and film hire charges ii. Which source is the growing the fastest? : Employee benefit expenses is growing at 18% and cost of trading is growing at 16 % What is COGS for PVR’s movie exhibition business? In other words, what is it that the procuring as raw material, adding value to it, and re-selling? Do not write the number here, just the concept. COGS usually include lease expense of multiplex, labour cost, film distributor share , food expenses , entertainment tax Tied to COGS is inventory. Crudely, inventory is unsold “COGS”. What is the inventory for PVR’s movie exhibition business? Again, do not write the number here, just the concept. Major inventory for * Inventory of seats/floor: Seat/handling unit is not filled does not lead in revenue. * ECONOMICS Inventory of films: Film/Service which is not screened in movie will not lead in revenue. Economies of...
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...have been a distant reality. INDEX S.NO. | TOPIC | PAGE NO. | 1 | Introduction | 4 | 2 | Major Competitors | 5 | 3 | Market Share | 6 | 44.14.24.3 | Comparative Study ON SCALE OF 7 P’sPVRBig CinemasINOX | 71113 | 55.15.25.3 | Competitive AdvantagePVRBig CinemasINOX | 141515 | 6 | Recommendations | 15 | 1. INTORODUCTION Priya Exhibitors Pvt. Ltd is a part of the diversified Bijli Group, which has interests in transport, finance and construction sectors all over India. After a downturn in the industry in late 80s when the onslaught of video wars as at its peak cinema rejuvenated with the latest international trends in cinema exhibition reached India’s shores swiftly with the arrival of satellite TV. The capitals cosmopolitan audience was becoming increasingly aware of the advanced cinematic technology that enhances the movie going experience and this had whetted their appetite for watching movies on the “big screen“. To cater to the increasingly sophisticated tastes of the audience Priya exhibitor Pvt. Ltd. totally refurbished the existing cinema in June 1991...
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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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...Read the Case Study and answer the following questions: • Why do people go to the movies? How has this changed? • What 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...
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...1) a) Why do the principals of Arundel Partners think they can make money buying movie sequel rights? The principle point is that they want to buy the rights of movies that can become, if successful sequels. When successful they can choose to produce the movie by themselves or to sell to the highest bidder (other production companies). When the first movie is successful the initial investment for the right is easily covered by the potential benefit of the (potential) sequels. As explained in the case, Arundel will notice the success or failure of a movie investment after the first few weeks of exhibition. b) Why do the partners want to buy a portfolio of rights in advance rather than negotiating film-by-film to buy them? Arundel want to buy a portfolio of right in advance rather than negotiating film-by-film because before production nobody has enough information about the potential of the movie. When the production has started, the movie studios have more information than Arundel. Then, they (movie studios) can already see the potential of a sequel or not. This is an example of asymmetry of information that could have implication on the bargaining power of Arundel. In addition, by buying a broad portfolio of sequel rights Arundel diversifies its risks (more than 30 investments could eliminate the specific risk). Moreover by buying purchasing a broad portfolio of sequel rights, Arundel is increasing its probability of having a highly successful investment...
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...Read the Case Study and answer the following questions: • What changes in the external environment put companies in the difficult 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...
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...Cinematography is the art or science of motion picture photography. It is the art or technique of movie photography, including both the shooting and development of the film. It can involve the use of film or digital imagery, usually with a movie camera. It is closely related to the art of still photography. Many additional technical difficulties and creative possibilities arise when the camera and elements of the scene may be in motion. The cinematographer could also be referred to as the film director's main visual collaborator. The history of film began in the late 1890s, with the invention of the movie camera.Motion pictures were initially exhibited as a carnival novelty and developed to one of the most important tools of communication and entertainment, and mass media in the 20th century and into the 21st century. Most films before 1930 were silent. Motion picture films have substantially affected the arts, technology, and politics. The movie theatre was considered a cheaper, simpler way to provide entertainment to the masses. Movies became the most popular visual art form of the late Victorian age. It was simpler because of the fact that before the cinema people would have to travel long distances to see major dioramas or amusement parks. With the advent of the cinema this changed. During the first decade of the cinema's existence, inventors worked to improve the machines for making and showing films. Initially, there were technical difficulties in synchronizing images...
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