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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- The market
- Total movie theater revenues expected to just keep pace with inflation
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- Figure 1: Total U.S. movie theater revenues and fan chart forecast of the market with best- and worst-case scenarios, at current prices, 2006-16
- Market drivers
- Increasing ticket prices deter attendance
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- Figure 2: U.S. movie theater average ticket prices, 2003-12
- Improving the viewing experience through technology may drive attendance
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- Figure 3: Installed analog, digital, and 3D movie screens, U.S., 2007-11
- Leading companies
- Regal, AMC, Cinemark, and Carmike account for more than half of U.S. audiences
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- Figure 4: Share of attendance and screens for top four theater chains, Fiscal Year 2011
- The consumer
- Movie attendance has yet to rebound from decline
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- Figure 5: Adults, teens, and kids movie theater attendance, 2010-11 vs. 2008-09
- Going to the movies is usually a social activity
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- Figure 6: Movie theater companionship, January 2012
- A majority of moviegoers purchase tickets in person at the theater box office
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- Figure 7: Most common movie ticket purchase method, January 2012
- For many, concessions are vital to the movie experience
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- Figure 8: Concession and other non-ticket purchases at movie theaters, usually bought vs. sometimes bought, January 2012
- At-home viewing is consistently preferred over movie theaters
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- Figure 9: Preferred movie watching venue, by key demographics, January 2012
- Cost, control, crowds, and comfort keeping movie viewers at home
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- Figure 10: Why a theater is not the preferred venue for watching movies, January 2012
- Opportunity to target avid moviegoers through loyalty program membership
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- Figure 11: Purchases tickets using a theater loyalty club card, by frequency of movie theater attendance, January 2012
- What we think
Issues in the Market
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- What can theaters do to boost attendance?
- How can theaters combat the draw of watching movies at home?
- How can theaters leverage their spaces to create new revenue streams?
- Is interest in 3D declining? What’s next?
Insights and Opportunities
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- Make it about more than just the show: highlight the social and experiential aspects
- Give the audience some control
- Theaters can use spaces for more than just movies
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- Figure 12: Willing to pay for live musical performances, special presentations at the movie theater, January 2012
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- Figure 13: AMC Theatre rentals and package tickets website information, April 2012
- Figure 14: Level 4 theater, nightclub, lounge, April 2012
- Consider selling the time, not the ticket
- Increase onscreen advertising time to boost revenues
Inspire Insights
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- Trend: Rise of the Screenager
- Trend: Snack Society
Market Size and Trends
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- Total revenues expected to remain flat in face of declining attendance
- Market size and forecast
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- Figure 15: Total U.S. movie theater revenues and forecast, at current prices, 2006-16
- Figure 16: Total U.S. movie theater revenues and forecast, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 17: Total U.S. movie theater revenues and fan chart forecast of the market with best- and worst-case scenarios, at current prices, 2006-16
Competitive Context
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- Key points
- Live entertainment events compete with movie theaters for audiences
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- Figure 18: Live entertainment participation, July 2011
- Alternative venues screen movies—sometimes cheaper, sometimes free
- Viewing movies from the comfort of home
- Equipment: a majority of households own HDTVs
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- Figure 19: Household ownership of TVs, home theater equipment, and Blu-ray, January 2012
- Services: well-equipped households more likely to have video subscriptions
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- Figure 20: Household subscription services, and internet connectivity, by home entertainment equipment, January 2012
Market Drivers
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- Key points
- High ticket prices cited as a reason for declining attendance
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- Figure 21: U.S. movie theater average ticket prices, 2003-12
- Time poverty a real issue cutting into movie industry’s business
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- Figure 22: Average hours per day spent on all activities, weekends and holidays, 2006-10
- Record high youth unemployment likely dampens teens’ spending
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- Figure 23: Employment-population ratio, 16-24 year olds, July 2002-11, not seasonally adjusted
- Innovation and technology a driving force
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- Figure 24: Installed analog, digital, and 3D movie screens, U.S., 2007-11
- Theater-to-video-release window tightened; consumers wait to buy
- Simultaneous release even more of a threat to theaters
Segment Performance
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- Increased advertising revenue offsets box office and concessions losses
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- Figure 25: Total U.S. movie theater sales, by revenue stream, 2009 and 2011
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- Figure 26: Total U.S. movie theater revenues and forecast, by segment. 2006-16
Segment Performance—Box Office Admissions
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- Poor attendance causes admissions decline in 2011, gains expected in 2012
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- Figure 28: U.S. and Canadian movie theater box office admissions, 2006-11
- Novelty of 3D wearing off, audiences more selective in their 3D viewing
Segment Performance—Concessions
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- Concessions decline in 2011, slide expected to continue in 2012
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- Figure 29: U.S. revenue and forecast of movie theater concessions, at current prices, 2006-16
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- Figure 30: U.S. movie theater concessions per patron, 2006-12
Segment Performance—Advertising
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- Advertising revenue forecast to double from 2006-16
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- Figure 31: U.S. revenue and forecast of movie theater advertising, at current prices, 2006-16
- Newly launched “second screen” may compete for audience attention
Leading Companies
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- Overview
- Regal Cinemas, AMC, Cinemark, and Carmike are top theaters
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- Figure 32: Top four theater chains’ operating data, Fiscal Year 2011
- Consumers’ visitation habits confirm the top four
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- Figure 33: Movie theaters visited in the past six months, by adults and teens, 2010-11
- Revenues reflect attendance, top theaters account for more than half of total sales
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- Figure 34: Top four theater chains’ revenue and attendance, Fiscal Year 2011
- Regal Entertainment Group
- Operations
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- Figure 35: Regal Entertainment Group U.S. operating data, Fiscal Years 2007-11
- Revenues
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- Figure 36: Regal Entertainment Group U.S. revenue data, Fiscal Years 2009 and 2011
- Strategic initiatives
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- Figure 37: Regal Entertainment Group digital, 3D-capable, and IMAX screens, Fiscal Year 2011
- AMC Entertainment Inc.
- Operations
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- Figure 38: AMC Entertainment Inc. U.S. operating data, Fiscal Years 2007-11
- Revenues
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- Figure 39: AMC Entertainment Inc. U.S. revenue data, Fiscal Years 2009 and 2011
- Strategic initiatives
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- Figure 40: AMC Entertainment Inc. digital, 3D-capable, IMAX, ETX, and dine-in theaters and screens, Fiscal Year 2011
- Cinemark
- Operations
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- Figure 41: Cinemark U.S. operating data, Fiscal Years 2007-11
- Revenues
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- Figure 42: Cinemark U.S. revenue data, 2009 and 2011
- Strategic initiatives
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- Figure 43: Cinemark digital, 3D-capable, IMAX, XD, NextGen screens, Fiscal Year 2011
- Carmike Cinemas
- Operations
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- Figure 44: Carmike Cinemas U.S. operating data, 2007-11
- Revenues
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- Figure 45: Carmike Cinemas U.S. revenue data, 2009 and 2011
- Strategic Initiatives
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- Figure 46: Carmike Cinemas digital, Big D screens, Fiscal Year 2011
Innovations and Innovators
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- Key points
- Going beyond the projector: upgrading the theater experience
- Tugg lets movie theaters give the people what they want
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- Figure 47: Tugg website, April 2012
- Satellite-based digital delivery to increase efficiency, decrease costs
Marketing Strategies
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- Key points
- Traditional advertising is for the title event—not for the theater
- Websites used to relay show information, promote theater, drive loyalty
- Regal Cinemas
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- Figure 48: Regal Entertainment Group website, April 2012
- AMC Theatres
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- Figure 49: AMC Theatres website, April 2012
- Cinemark
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- Figure 50: Cinemark website, April 2012
- Carmike Cinemas
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- Figure 51: Carmike Cinemas website, April 2012
- iPic Theaters web commercial provides audiences with an escape
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- Figure 52: iPic Theaters web commercial, April 2012
- CinéBistro advertising hits the streets with 3D mobile showcase
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- Figure 53: CinéBistro mobile marketing, September 2011
- Muvico partners with area business to increase awareness and drive foot traffic
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- Figure 54: McDonald’s Muvico tray liner, April 2012
Movie Theater Attendance Trends
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- Key points
- Movie attendance has yet to rebound from decline
- Glut of sequels in 2012 predicted to negatively impact attendance
- Increasing ticket prices foot some of the blame for decreasing attendance
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- Figure 55: Adults’ past six month movie attendance and average number of times visited the movies in the last 90 days, January 2006-September 2011
- Attendance driven by women, young adults, and affluents
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- Figure 56: Adults’ past six month movie attendance and average number of times visited the movies in the last 90 days, by key demographics, July 2010-September 2011
- People who notice products placed in movies are more likely to attend the cinema
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- Figure 57: Adults’ past six month movie attendance and average number of times visited the movies in the last 90 days, by movie product placement segmentation, July 2010-September 2011
- Teen movie attendance declines significantly
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- Figure 58: Teens’ past six month movie attendance and number of times visited the movies in the last 90 days, May 2005-June 2011
- Still, teens go more than adults, and kids are most likely to attend
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- Figure 59: Adults’, and teens’ past six month movie attendance and average number of times visited the movies in the last 90 days/kids’ past three month movie attendance and number of times attended the movies in the past three months, 2010-11
- Kids go against overall trends; attendance is up among 6-11 year olds
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- Figure 60: Kids’ past three month movie attendance and number of times attended the movies in the past three months, May 2005-June 2011
Movie Theater Attendance Frequency
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- Key points
- More than half go to the movies at least every two to four months
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- Figure 61: Frequency of movie theater attendance, January 2012
- Frequency generally reflects attendance trends
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- Figure 62: Frequency of movie theater attendance, by key demographics, January 2012
Movie Theater Companionship
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- Key points
- Going to the movies is usually a social activity
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- Figure 63: Whom do you go to the movies with? Most often and also go with, January 2012
- Women more likely to go with children; men more likely to go solo
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- Figure 64: Movie theater typical companionship, by gender, January 2012
- Younger adults go with friends; older adults go with a spouse
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- Figure 65: Movie theater typical companionship, by age, January 2012
- Among teens, friends replace parents as companions
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- Figure 66: Teens’ typical movie companionship, by gender and age, April 2010-June 2011
Movie Ticket Purchase Methods
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- Key points
- Tickets are most often purchased in person at the theater box office
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- Figure 67: Movie ticket purchase methods, January 2012
- Moviegoers aged 18-34 use a variety of methods to purchase tickets
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- Figure 68: Movie ticket purchase methods, by age, January 2012
- Mid- to upper-income moviegoers more likely to plan ticket purchases in advance
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- Figure 69: Movie ticket purchase methods, by household income, January 2012
Movie Time and Location Searching Methods
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- Key points
- Local print publications and movie theater websites used most often
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- Figure 70: Movie time and location searching methods, January 2012
- Print used most by ages 55+, under-55s more apt to go online
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- Figure 71: Most typical movie time and location searching methods, by age, January 2012
- Most affluent moviegoers use local print and internet ticketing sites
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- Figure 72: Most typical movie time and location searching methods, by household income, January 2012
Concessions and Other Non-ticket Purchases at Movie Theaters
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- Key points
- Popcorn and soft drinks, fruit juice, water purchased most at the movies
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- Figure 73: Concessions and other non-ticket purchases at movie theaters, January 2012
- Movie theater “extras” are often driven by children in the household
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- Figure 74: Most typical concessions and other non-ticket purchases at movie theaters, by presence of children in household, January 2012
Movie Theater Amenities Worth Paying Extra For
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- Key points
- Movie viewing technologies most likely to be worthy of paying extra for
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- Figure 75: Movie theater amenities worth paying extra for, March 2011 vs. January 2012
- Preference for 3D declines
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- Figure 76: Preference for 3D version of movies, by age, October 2009- September 2011
- Men more willing to pay extra for viewing experience
- Women show greater interest in convenience and variety of food and beverages
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- Figure 77: Movie theater amenities worth paying extra for, by gender, January 2012
- In general, a willingness to pay extra diminishes with age
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- Figure 78: Unwilling to pay extra for any theater amenities, by age, January 2012
- Most affluent value technology and healthy, higher-quality food choices
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- Figure 79: Movie theater amenities worth paying extra for, by household income, January 2012
- Alcohol purchasers are most willing to pay extra…for everything
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- Figure 80: Movie theater amenities worth paying extra for, by purchases alcohol, January 2012
Preferred Movie Venue and Why Home is Preferred
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- Key points
- Viewing at home is consistently preferred over movie theaters
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- Figure 81: Preferred movie watching venue, by key demographics, January 2012
- Cost, control, crowds, and comfort keeping movie viewers at home
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- Figure 82: Why a theater is not the preferred venue for watching movies, by movie attendance, January 2012
- Mid- to upper-income moviegoers are not immune to pricing pressure
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- Figure 83: Why a theater is not the preferred venue for watching movies, by household income, January 2012
- Home theaters and subscription services compete with theaters
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- Figure 84: Why a theater is not the preferred venue for watching movies, by home entertainment equipment owned and subscription services, January 2012
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- Figure 85: Household subscription services, by home entertainment equipment owned, January 2012
Impact of Race and Hispanic Origin
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- Key points
- Movie theater attendance trends
- Asians are most likely to have attended; Hispanics average more visits
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- Figure 86: Past six month movie attendance and average number of times visited the movies in the last 90 days, by race/Hispanic origin, July 2010-September 2011
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- Figure 87: Perception of movie attendance frequency, by race/Hispanic origin, July 2010-September 2011
- Teens of all races go to the movies; non-white teens go with greater frequency
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- Figure 88: Teens’ past six month movie attendance and number of times visited the movies in the last 90 days, by race/Hispanic origin, April 2010-June 2011
- Movie theater attendance frequency
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- Figure 89: Frequency of movie theater attendance, by race/Hispanic origin, January 2012
- Movie theater companionship
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- Figure 90: Movie theater typical companionship, by race/Hispanic origin, January 2012
- Movie ticket purchase methods
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- Figure 91: Movie ticket purchase methods, by race/Hispanic origin, January 2012
- Movie time and location searching methods
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- Figure 92: Most typical movie time and location searching methods, by race/Hispanic origin, January 2012
- Concessions and other non-ticket purchases at movie theaters
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- Figure 93: Most typical concessions and other non-ticket purchases at movie theaters, by race/Hispanic origin, January 2012
- Movie theater amenities worth paying extra for
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- Figure 94: Movie theater amenities worthy of paying extra, by race/Hispanic origin, January 2012
- Figure 95: Preference for 3D version of movies, by race/Hispanic origin, July 2010-September 2011
- Preferred movie venue and why home is preferred
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- Figure 96: Preferred movie watching venue, by race/Hispanic origin, January 2012
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- Figure 97: Why a theater is not the preferred venue for watching movies, by race/Hispanic origin, January 2012
Custom Consumer Groups—Attendance Frequency
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- Key points
- Movie theater companionship
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- Figure 98: Whom do you go to the movies with?, by frequency of movie theater attendance, January 2012
- Movie ticket purchase methods
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- Figure 99: Movie ticket purchase methods, by frequency of movie theater attendance, January 2012
- Movie time and location searching methods
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- Figure 100: Movie time and location searching methods, by frequency of movie theater attendance, January 2012
- Concessions and other non-ticket purchases at movie theaters
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- Figure 101: Concessions and other non-ticket purchases at movie theaters, by frequency of movie theater attendance, January 2012
- Movie theater amenities worth paying extra for
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- Figure 102: Movie theater amenities worth paying extra for, by frequency of movie theater attendance, January 2012
- Preferred movie venue and why home is preferred
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- Figure 103: Preferred movie watching venue, by frequency of movie theater attendance, January 2012
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- Figure 104: Why a theater is not the preferred venue for watching movies, by frequency of movie theater attendance, January 2012
Appendix—Other Useful Consumer Tables
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- Movie theater attendance trends
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- Figure 105: Teens’ past six month movie attendance and number of times visited the movies in the last 90 days, by gender and age, April 2010-June 2011
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- Figure 106: Top ways for teens to spend money, by gender, May 2011
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- Figure 107: Kids’ past three month movie attendance and number of times attended the movies in the past month, by age, April 2010-June 2011
- Movie theater attendance frequency
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- Figure 108: Frequency of movie theater attendance, men, by age, January 2012
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- Figure 109: Frequency of movie theater attendance, women, by age, January 2012
- Movie theater companionship
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- Figure 110: Movie theater typical companionship, by household income, January 2012
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- Figure 111: Movie theater typical companionship, men, by age, January 2012
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- Figure 112: Movie theater typical companionship, women, by age, January 2012
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- Figure 113: Movie theater typical companionship, by presence of children in household, January 2012
- Movie ticket purchase methods
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- Figure 114: Movie ticket purchase methods, men, by age, January 2012
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- Figure 115: Movie ticket purchase methods, women, by age, January 2012
- Movie time and location searching methods
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- Figure 116: Most typical movie time and location searching methods, by gender, January 2012
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- Figure 117: Most typical movie time and location searching methods, men, by age, January 2012
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- Figure 118: Most typical movie time and location searching methods, women, by age, January 2012
- Concessions and other non-ticket purchases at movie theaters
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- Figure 119: Most typical concessions and other non-ticket purchases at movie theaters, by gender, January 2012
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- Figure 120: Most typical concessions and other non-ticket purchases at movie theaters, by gender and marital status, January 2012
- Movie theater amenities worthy of paying extra
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- Figure 121: Movie theater amenities worthy of paying extra, by age, January 2012
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- Figure 122: Movie theater amenities worthy of paying extra, by region, January 2012
- Preferred movie venue and why home is preferred
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- Figure 123: Preferred movie watching venue, by region, January 2012
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- Figure 124: Why a theater is not the preferred venue for watching movies, by gender, January 2012
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- Figure 125: Why a theater is not the preferred venue for watching movies, by age, January 2012
Appendix—Trade Associations
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