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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- Movie exhibitor revenues rebound but admissions stay flat
- Cinema advertising is the fastest-growing segment of theater revenues
- Home viewing of movies detracts from box office
- More of the same from Hollywood studios
- Will stars always matter?
- Traditional movie adspend down, but “independent” label spend up
- Attention turns to Boomers to grow market
- Trend toward larger theater complexes and bigger screens continues
- Cost is primary deterrent to theater attendance
- Screen size and leaving the house are biggest advantages of cinema
- Closest theater is not necessarily most frequented
Insights and Opportunities
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- Improving value through pricing structures
- Redefining the experience for over-45s
Fast Forward Trends
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- Trend: Sense of the Intense
- How it impacts the movie theater market
- Surround vision and all five senses
- Movie clubs
- Themed ambience
- Trend: Third Place
- How it impacts the movie theater market
- The local movement
- Opportunities in middle America
- Trend User-Generated Content
- How it impacts the movie theater market
- Crowd-Gaming Arrives
- How it impacts the movie theater market
- Multitasking at the cinema
- Filling every seat
- Following in the lead of airlines, eBay, and ballparks
- Movie theaters as content distributors
Market Size and Forecast
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- Key points
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- Figure 1: Movie theater admissions, 2002-07
- Figure 2: Total domestic revenues of movie theater operators, 2002-12
Competitive Context
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- Competition from other sources of filmed entertainment
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- Figure 3: Annual consumption of selected filmed entertainment, hours per person per year, 2002-06
- Video-on-demand (VOD) grows
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- Figure 4: Pay-per-view and video-on-demand usage, by year, 2005-07
- Internet downloads aided by growth of broadband
- Shrinking window to home broadcast
- Better viewing equipment at home
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- Figure 5: Penetration of HDTV, 2004-07
- Figure 6: Sizes of television(s) owed, 2004-07
Segment Performance—Overview
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- Key points
- Ancillary revenues grow faster than box office
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- Figure 7: U.S. sales and forecast of movie theater sales, at current prices, by segment, 2002-12
- Figure 8: Cinema exhibitor sales, by revenue stream, 2005 and 2007
Segment Performance—Admissions
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- Key points
- Box office grows but admissions unlikely to recover
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- Figure 9: Graph: Movie theater admissions and average ticket prices, 2000-07
- Figure 10: Movie theater admissions and average ticket prices, 2002-07
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- Figure 11: Sales of movie tickets at box office, 2002-12
Segment Performance—Concessions
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- Key points
- Concession revenue grows through price hikes
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- Figure 12: Average ticket and concession revenue per patron at Regal Cinemas, 2003-07
- Concessions become greater part of profit
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- Figure 13: Sales of theater concessions, 2002-12
Segment Performance—Cinema Advertising
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- Key points
- Cinema advertising positioned for 12-34 year olds
- Cinema ads draw new clients in new formats
- Cinema advertising may benefit from Hollywood writers’ strike
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- Figure 14: Sales of cinema advertising, 2002-12
Supply Structure
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- Key points
- Market share changes hands but stays in the family
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- Figure 15: Box office share of major media conglomerates, 2003-07
- Studios scramble for sequels but see no boost
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- Figure 16: Movie sequels grossing over $100 million, 2002-07
- Star power lower in 18-24s
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- Figure 17: Factors in movie selection, by age, December 2007
Market Drivers
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- Greatest growth potential from aging Boomers
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- Figure 18: U.S. population and projections and average visits to the movies, by age, 2002-12
- Cutbacks in consumer spending
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- Figure 19: Reaction to rising gas prices, by age, November 2007
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- Figure 20: Change in aggregate consumer expenditures in a recession period, by category, 2002-03 and 2003-04
Leading Companies
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- Key points
- Exhibitor snapshot
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- Figure 21: U.S. box office revenues, by theater exhibitor, 2006 and 2007
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- Figure 22: Selected statistics for major U.S. theater exhibitors, 2007
- Regal Entertainment
- AMC Entertainment
- Cinemark
- Carmike
- Flurry of corporate activity
- Growth in multiple-screen complexes
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- Figure 23: Number of movie theaters in the U.S., by screen count, 2003 and 2006
- Imax 3D expansion
- Digitization of screens
- Online ticket sales
- Fandango.com
- Movietickets.com
Innovation and Innovators
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- Adult-oriented luxury theaters
- Live entertainment
- More specialty fare in the line-up for over-40s
- Faster concession lines
- Guest response systems
Advertising and Promotion
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- Overview
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- Figure 24: Media expenditures and total sales for major movie studios, 2006
- Marketing costs rise for indies
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- Figure 25: Average advertising cost of new feature films, MPAA members vs subsidiaries/affiliates, 2002-06
- Media selection
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- Figure 26: Allocation of advertising spend for MPAA member companies, by media, 2002-06
- Theater chains increase adspend
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- Figure 27: Media expenditures, by selected theater chains, 2005 and 2006
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- Figure 28: Xtreme Clip: Chicago Imax Theater, April 2007
The Cinema Experience and Substitutes
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- Frequency of usage
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- Figure 29: Movie viewing, by medium, and use of online trailers and movie websites in the past six months, December 2007
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- Figure 30: Movie viewing, by medium, and use of online trailers and movie websites in the past six months, by age, December 2007
Reasons why Attendance is not Higher
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- Figure 31: Reasons not to go to the movies, December 2007
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- Figure 32: Reasons not to go to the movies, by age, December 2007
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- Figure 33: Reasons not to go to the movies, by household income, December 2007
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Reasons to go to Movies over Watching a DVD
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- Figure 34: Reasons for going to the movies over watching a DVD, December 2007
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- Figure 35: Reasons for going to the movies over watching a DVD, by gender, December 2007
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- Figure 36: Reasons for going to the movies over watching a DVD, by age, December 2007
- Factors in movie selection
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- Figure 37: Factors in movie selection, December 2007
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- Figure 38: Factors in movie selection, by age, December 2007
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Awareness and Enjoyment of Films at the Theater
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- Figure 39: Attitudes toward movie-going, December 2007
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- Figure 40: Attitudes toward movie going, by age, December 2007
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Theater Selection
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- Factors in theater preference
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- Figure 41: Reasons for going to a theater other than the closest, December 2007
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- Figure 42: Reasons for going to a theater other than the closest, by gender, December 2007
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- Figure 43: Reasons for going to a theater other than the closest, by age, December 2007
Attitudes Toward Pricing and Concessions
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- Figure 44: Attitudes toward pricing and concessions, December 2007
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- Figure 45: Attitudes toward pricing and concessions, by age, December 2007
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The Movie Theater as Advertising Forum
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- Figure 46: Attitudes toward advertisement at the theater, 2005 and 2007
- Figure 47: Attitudes toward advertisements at the theater, by age, May 2006-June 2007
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Taking the Kids to the Movies
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- Figure 48: Reasons to go to the movies over watching a DVD, by presence of children in household, December 2007
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- Figure 49: Factors in movie selection, by presence of children in household, December 2007
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- Figure 50: Impact of children on movie choice, by age, December 2007
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- Figure 51: Attitudes toward movie going, by presence of children in household, December 2007
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- Figure 52: Attitudes toward movie theaters, by presence of children in household, December 2007
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- Figure 53: Attitudes of parents toward childcare at the cinema, by age, December 2007
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Custom Consumer Groups
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- Frequency of movie attendance
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- Figure 54: Movie viewing, by medium, and interest in movie-related media in the past six months, by frequency of movie attendance, December 2007
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- Figure 55: Reasons not to go to the movies, by frequency of movie attendance, December 2007
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- Figure 56: Reasons for going to the movies over watching a DVD, by frequency of movie attendance, December 2007
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- Figure 57: Factors in movie selection, by frequency of movie attendance, December 2007
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- Figure 58: Attitudes toward movie going, by frequency of movie attendance, December 2007
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- Figure 59: Reasons for going to a theater other than the closest, by frequency of movie attendance, December 2007
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- Figure 60: Attitudes toward movie theaters, by frequency of movie attendance, December 2007
- Age and ethnicity
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- Figure 61: Movie viewing, by medium, and use of online trailers and websites, by age and race/ethnicity, December 2007
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- Figure 62: Reasons not to go to the movies, by age and race/ethnicity, December 2007
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- Figure 63: Reasons for going to the movies over watching a DVD, by age and race/ethnicity, December 2007
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- Figure 64: Factors in movie selection, by age and race/ethnicity, December 2007
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- Figure 65: Attitudes toward movie going, by age and race/ethnicity, December 2007
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- Figure 66: Reasons for going to a theater other than the closest, by age and race/ethnicity, December 2007
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- Figure 67: Attitudes toward movie theaters, by age and race/ethnicity, December 2007
Cluster Analysis—Three Types of Movie Consumers
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- Insights
- Cluster 1—Movie fanatics
- Cluster 2— Infrequent movie viewers, but open to all formats
- Cluster 3—Homebody TV movie watchers
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- Figure 68: Movie theater user clusters, December 2007
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- Figure 69: Viewing frequency, by movie theater user clusters, December 2007
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- Figure 70: Reasons to go to movie theaters other than the one closest, by movie theater user clusters, December 2007
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- Figure 71: Reasons for going to the theater instead of watching a movie on DVD, by movie theater user clusters, December 2007
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- Figure 72: statements agreed with, by movie theater user clusters, December 2007
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- Figure 73: statements regarding movie theaters agreed with, by movie theater user clusters, December 2007
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- Figure 74: movie theater user clusters, by gender, December 2007
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- Figure 75: movie theater user clusters, by age, December 2007
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- Figure 76: movie theater user clusters, by race, December 2007
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- Figure 77: movie theater user clusters, by Hispanic origin, December 2007
- Methodology
Appendix: Additional Results by Gender
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- Figure 78: Movie viewing, by medium, and use of online trailers and websites, by gender, December 2007
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- Figure 79: Attitudes toward movie going, by gender, December 2007
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- Figure 80: Attitudes toward movie theaters, by gender, December 2007
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- Figure 81: Reasons not to go to the movies, by gender, December 2007
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- Figure 82: Factors in movie selection, by gender, December 2007
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Appendix: Results by Race and Ethnicity
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- Figure 83: Movie viewing, by medium, and use of online trailers and websites in the past six months, by race/ethnicity, December 2007
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- Figure 84: Reasons not to go to the movies, by race/ethnicity, December 2007
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- Figure 85: Reasons for going to the movies over watching a DVD, by race/ethnicity, December 2007
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- Figure 86: Factors in movie selection, by race/ethnicity, December 2007
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- Figure 87: Attitudes toward movie going, by race/ethnicity, December 2007
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- Figure 88: Reasons for going to a theater other than the closest, by race/ethnicity, December 2007
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Appendix: Other Useful Consumer Tables
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- Figure 89: Movie viewing, by medium, and use of online trailers and websites in the past six months, by household income, December 2007
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- Figure 90: Reasons for going to the movies over watching a DVD, by household income, December 2007
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- Figure 91: Factors in movie selection, by household income, December 2007
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- Figure 92: Attitudes toward movie going, by household income, December 2007
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- Figure 93: Reasons for going to a theater other than the closest, by household income, December 2007
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- Figure 94: Attitudes toward movie theaters, by household income, December 2007
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Appendix: Trade Associations
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