...Theater Industry: A Constant Evolution of Entertainment Matthew Richards BU224 Microeconomics Professor Biasca 29April2014 Introduction The lights go down. The screen illuminates. And the theatre comes alive. There's nothing quite like the feeling of watching a movie on the giant silver screen. But how has the entertainment industry continued to stay profitable despite changes in technology and attendance. The demand for entertainment will always be there. Creating a unique entertainment experience as well as a pleasurable one is now the focus of many theaters. Brief History North America 1905. Gathered outside the store front there is a group of people staring inside. This was the scene for the first type of indoor exhibition known as a movie theater. For the cost of a nickel you too could enjoy the scene. Nickelodeons were the first form of movie theaters here in North America. Their popularity ranged from 1905 until 1915. During these times there were approximately 8,000 nickelodeons. As of June 1, 2013 there are 23, 152 screens in over 1,848 sites. The top four leading companies today are Regal Cinemas, Cinemark, AMC, and Carmike Cinemas making up 78% of the market out of the top 10 companies. (Cororan, 2013) To figure out how one industry could change so much in just one century we look towards Adam Smith and his invisible hand metaphor. He states that through the self-regulating behavior of the marketplace, individuals can make profit and maximize their earnings...
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