Movie Theaters Industry Overview

Excerpt from Movie Theaters Report

Companies in this industry exhibit motion pictures at indoor movie theaters, film festivals, and drive-in theaters. Major US companies include AMC Entertainment, Carmike Cinemas, Cinemark, and Regal Entertainment.

Competitive Landscape

Personal income and leisure time drive demand. The profitability of individual companies depends on securing access to popular movies and sales of high-margin food and beverages. Large companies have advantages of scale in negotiating with movie distributors, marketing, and purchasing. Small companies can compete effectively by specializing in movie type or audience, or by providing better service and amenities. The industry is highly concentrated: the top 50 companies account for more than 80 percent of revenue.

Products, Operations & Technology

Ticket sales account for two-thirds of revenue; food and beverage sales for more than 20 percent. Other source of revenue include on-screen advertisements, facility and concession rental during nonpeak hours, and amusement machine use.