Movie Theaters
Competitive Landscape
Personal income and leisure time drive demand for movie theaters. The profitability of individual companies depends on securing access to popular movies and sales of high-margin food and beverages. Large companies have advantages in negotiating with movie distributors; marketing; and economies of scale in purchasing. Small companies can compete effectively by specializing in movie type or audience, or providing better service and amenities. The industry is labor-intensive: average annual revenue per worker is about $90,000.
Opportunities
Specialization by Content or Price - Smaller and midsized companies can specialize to differentiate themselves from large movie chains and appeal to underserved markets. First-run independent and international films, restored classics,...
Business Challenges
Dependence on Movie Production, Distribution Companies - Theaters rely on movie production companies and distributors for films, license rights, and marketing. Theaters need movies that appeal to local markets. Distributors decide which...