The Movie Industry Case Essay

697 words - 3 pages

Not very long time ago when people did not have opportunity to buy brand new TV's not because they did not have disposable income but because there was a limit on every single item made and not everyone could get it. Movie theaters were very popular among all people. There was no specific age group that would or would not go to see a movie, because that was something special for everybody. People were spending a lot of money to see any kind of movie because that was one of the few entertainments they could enjoy and that is why even small movie theaters could support themselves and exist as a family business that was bringing a lot of income for the owners. As the years were passing by there was an opportunity for everyone to get a TV because manufacturers could produce more and more of them and that is where movie theater industry started feeling decline. Smaller or family owned movie theaters had to go out of business because they did not have enough income to support themselves and only big companies could stay in business.Nowadays there are three major movie theater companies that have more than 50 percent of the market share and they create oligopoly in movie theater industry. The movie theater 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. As the years go by the movie theaters industry struggles more and more to bring viewers back to the silver screens.Internally movie theaters compete against one another primarily on the basis of film offerings, ticket prices, auditorium quality and concessions offerings. The popularity of certain films is the most important demand determinant for a theater, and the ability to secure the license to exhibit a season's biggest hit is a theater's strongest competitive advantage. Strong links with movie...

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