Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Declining admissions trend reversed by recession
- Cinema experiences see competition from internet and home theater
- Hollywood studios continue to dominate and seek low-risk hits
- Recession boosts admissions but slows digitization
- Megaplex strategy continues to perform
- Studios get more creative as marketing budgets are cut
- Moviegoing remains a largely impromptu activity
- Comfortable seats and convenient movie times are most important factors in theater selection
- Popcorn and soda tradition remains intact for now
- Traditional TV and radio ads still the best way to reach moviegoers
- Minority moviegoers show higher frequency of attendance
Insights and Opportunities
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- Industry moving toward dual segmentation
- Using the admissions boost to revive the tradition
- Making moviegoers commit earlier
- Use social networking sites to facilitate collective action
Inspire Insights
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- Trend: Experience is all
- The full experience theater
- Trend: You are in control
- Letting the moviegoer choose
Market Size and Forecast
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- Movie theaters a growth story during recession
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- Figure 1: Total domestic revenues of movie theater operators, at current prices, 2004-14
- Figure 2: Total domestic revenues of movie theater operators at inflation-adjusted prices*, 2004-14
Competitive Context
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- Box office recovers but growth lags behind video games and internet
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- Figure 3: Hours of filmed entertainment consumption per person per year, 2003-07
- Adoption of more sophisticated televisions continues
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- Figure 4: Types of televisions owned, 2007 and 2008
- Home video revenues decline despite home theater trend
Segment Performance
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- Ancillary revenues grow faster through 2008
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- Figure 5: U.S. sales and forecast of movie theater operators, by revenue stream, 2004-14
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- Figure 6: Movie theater sales, by revenue stream, 2006 and 2008
Segment Performance—Admissions
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- 2009 breaks trend as growth is driven by admissions
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- Figure 7: Sales of movie tickets at box office, 2004-14
- Admissions boom in 2009 after weak 2008
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- Figure 8: Movie theater admissions and average ticket prices, 2003-08
Segment Performance—Concessions
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- Concessions revenues stall as consumers pull back
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- Figure 9: Sales of theater concessions, 2004-14
- Growth of concession revenue slows even for megaplex operators
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- Figure 10: Average ticket and concession revenue per patron at regal cinemas, 2003-07
Segment Performance—Cinema Advertising
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- Cinema advertising slowed down by recession but still growing
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- Figure 11: Sales of cinema advertising*, 2004-14
Supply Structure
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- Blockbusters key to market share but growth through niche still possible
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- Figure 12: Box office share of major media conglomerates, 2007-08
- Comedy genre gains share during hard times
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- Figure 13: Box office share, by genre, 2007-08
- Studios avert risk through franchises, remakes, and building on known brands
Market Drivers
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- Core demographics more likely to increase attendance during recession
- Recession slows revenue boost from 3D releases
- Studios turn to franchise tentpoles to guarantee attendance
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- Figure 14: Movie sequels grossing over $100 million, 2004-08
Leading Companies
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- Regal and AMC outpace overall box office in admissions growth
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- Figure 15: U.S. box office revenues, by theater exhibitor, 2006 and 2008
- Megaplex strategy continues to perform for AMC
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- Figure 16: Selected statistics for major U.S. theater exhibitors, 2008
- Leading chains move ahead with 3D and IMAX
- Personalized gift cards and promotional tie-ins make gift cards more fun
- Regal seeks to expand social networking presence
Innovation and Innovators
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- AMC targets adults with new upscale concepts
- Motion-enhanced seating intensifies action experience
Advertising and Promotion
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- Major studios cut back on media buys
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- Figure 17: Media expenditures and total sales for major movie studios, 2006 and 2007
- Studios get creative to do more with less
- Network TV courts movie advertisers
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- Figure 18: Movie studio spending on network and cable TV advertising, 2004-08
Movie Attendance
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- Age and household income are greatest determinants of movie attendance
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- Figure 19: Movie attendance, by age, household income and presence of children, Oct 2007-Dec 2008
Change in Movie Theater Attendance
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- Higher box office receipts may comes from core demographics
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- Figure 20: Change in movie theater attendance, April 2009
- Core segments of males and 18-24 year-olds are more likely to report higher attendance
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- Figure 21: Change in movie theater attendance, by gender, April 2009
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- Figure 22: Change in movie theater attendance, by age, April 2009
- Financial conditions impact attendance of lower-earners and larger families
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- Figure 23: Change in movie theater attendance, by household income, April 2009
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- Figure 24: Change in movie theater attendance, by children in the household, April 2009
Method of Purchase
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- Tickets still predominately purchased right before the movie
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- Figure 25: Method of movie ticket purchase, April 2009
- Moviegoers aged 18-24 most likely to buy tickets right before movie while 24-34s most likely to buy online
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- Figure 26: Method of movie ticket purchase, by age, April 2009
- Males, higher earners, and families more likely to purchase online
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- Figure 27: Method of movie ticket purchase, by gender, April 2009
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- Figure 28: Method of movie ticket purchase, by household income, April 2009
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- Figure 29: Method of movie ticket purchase, by children in the household, April 2009
Factors in Theater Selection
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- Comfortable seating and convenient movie times are most important factors
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- Figure 30: Factors in theater selection, April 2009
- Male respondents more likely to value megaplex qualities
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- Figure 31: Factors in theater selection, by gender, April 2009
- Youngest respondents aged 18-24 more likely to value title selection and fun ambience
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- Figure 32: Factors in theater selection, by age, April 2009
- Families want discounts but others want quiet
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- Figure 33: Factors in theater selection, by children in the household, April 2009
Concessions Purchased
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- Popcorn and drink combo still the most widely purchased concession
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- Figure 34: Concessions purchased at movie theater, April 2009
- Popcorn tradition stronger among over-35s
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- Figure 35: Concessions purchased at movie theater, by age, April 2009
- Kids drive concession purchases as well as alcoholic beverage sales
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- Figure 36: Concessions purchased at movie theater, by children in the household, April 2009
Sources of Information
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- Internet significant but traditional media has greatest reach by far
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- Figure 37: Sources of information on movies, April 2009
- TV, internet, and billboards more noticed by key under-35 demographic
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- Figure 38: Sources of information on movies, by age, April 2009
In-Theater Advertising
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- Lobby and pre-show commercials more likely reach under-45s and blacks
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- Figure 39: Interest in in-theater advertising, by gender, age and race/Hispanic origin, October 2007-December 2008
Movie Theater Gift Cards
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- Movie gift card purchase driven by children and mothers
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- Figure 40: Movie theater gift card purchase, by gender, age, HH income, race/Hispanic origin and presence of children, April 2009
Impact of Race and Hispanic Origin
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- Hispanics of all ages attend movies more frequently
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- Figure 41: Movie attendance, frequency and average times, by race/Hispanic origin and age, Oct 2007-Dec 2008
- Blacks and Hispanics under 45 more likely to have increased attendance
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- Figure 42: Change in movie theater attendance, by race/Hispanic origin among 18-44 year-olds, April 2009
- Black and Hispanic respondents more likely to look for larger screens, fun ambience, and wider selection of concessions
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- Figure 43: Factors in theater selection, by race/Hispanic origin among 18-44 year-olds, April 2009
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- Figure 44: Concessions purchased, by race/Hispanic origin, April 2009
- Black and Hispanic respondents more likely to pay attention to movie ads on radio, television, and outdoors
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- Figure 45: Sources of information on movies, by race/Hispanic origin, April 2009
Cluster Analysis
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- Infrequents
- Who they are
- Opportunities
- The Unperturbed
- Who they are
- Opportunities
- Avid-goers
- Who they are
- Opportunities
- Cluster characteristics
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- Figure 46: Moviegoing clusters, April 2009
- Figure 47: Movie attendance, by moviegoing clusters, April 2009
- Figure 48: Change in movie theater attendance, by moviegoing clusters, April 2009
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- Figure 49: Factors in theater selection, by moviegoing clusters, April 2009
- Figure 50: Method of movie ticket purchase, by moviegoing clusters, April 2009
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- Figure 51: Movie theater gift card purchase, by moviegoing clusters, April 2009
- Figure 52: Concessions purchased, by moviegoing clusters, April 2009
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- Figure 53: Sources of information on movies, by moviegoing clusters, April 2009
- Cluster demographics
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- Figure 54: Moviegoing clusters, by gender, April 2009
- Figure 55: Moviegoing clusters, by age, April 2009
- Figure 56: Moviegoing clusters, by HH income, April 2009
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- Figure 57: Moviegoing clusters, by race, April 2009
- Figure 58: Movie-going clusters, by Hispanic origin, April 2009
- Cluster methodology
Custom Consumer Groups
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- Change in attendance
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- Figure 59: Change in movie theater attendance, by gender and children in household, April 2009
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- Figure 60: Change in movie theater attendance, by gender and age, April 2009
- Method of purchase
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- Figure 61: Method of movie ticket purchase, by age and gender, April 2009
- Sources of information
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- Figure 62: Sources of information on movies, by age and gender, April 2009
Appendix: Other Useful Consumer Tables
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- Theater selection
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- Figure 63: Factors in theater selection, by household income, April 2009
- Sources of information
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- Figure 64: Sources of information on movies, by gender, April 2009
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- Figure 65: Sources of information on movies, by children in the household, April 2009
- Concessions purchased
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- Figure 66: Concessions purchased, by gender, April 2009
Appendix: Trade Associations
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