Movie Theaters - US - December 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Market overview
Figure 1: Total US sales and fan chart forecast of movie theater revenue, at current prices, 2014-24
Top takeaways
Key consumer trends
Moviegoers find less value in a visit
Figure 2: Price Sensitivity – Optimal price, September 2019
Consumers still seeking quality concessions
Figure 3: Movie theater concessions purchased, September 2019
Comfy seating keeps crowds content
Figure 4: Improvements to movie theaters, September 2019
Relying on users and original ideas to create conversation
Figure 5: Attitudes toward movies and reviews, September 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Revenue forecast for steady growth in coming years
Box office fluctuates but concessions show strong growth
Cultural shifts impact movie theater performance
Competition at home can make movie theaters an expensive endeavor
MARKET SIZE AND FORECAST
Movie theater revenue estimated for mild growth
Figure 6: Total US sales and fan chart forecast of movie theater revenue, at current prices, 2014-24
Figure 7: Total US sales and forecast of market, at current prices, 2014-24
MARKET BREAKDOWN
Box office continues to drive movie theater revenue
Figure 8: Movie theater revenue, by segment, 2019
Box office
Figure 9: Total US sales and fan chart forecast of box office revenue, at current prices, 2014-24
Figure 10: Total US sales and fan chart forecast of box office revenue, at current prices, 2014-24
Concessions
Figure 11: Total US sales and fan chart forecast of movie theater concessions revenue, at current prices, 2014-24
Figure 12: Total US sales and fan chart forecast of movie theater concessions revenue, at current prices, 2014-24
Advertising
Figure 13: Total US sales and fan chart forecast of movie theater advertising revenue, at current prices, 2014-24
Figure 14: Total US sales and fan chart forecast of movie theater advertising revenue, at current prices, 2014-24
THE MOVIE INDUSTRY 
Action dominates movie genres
Figure 15: Genres of movies seen, September 2019
3D starting to lose its novelty
Figure 16: 3D viewing, 2015-19
International influence making its mark on US market
Disney makes up lion’s share of market
Average ticket price hitting record highs
Figure 17: Average movie ticket price, 2009-19
Calls for inclusivity affecting content output
MARKET PERSPECTIVE
The streaming wars and what they mean for theaters
Figure 18: Awareness and interest in emerging streaming services, June 2019
Family entertainment budgets are shifting amidst new digital age
Figure 19: Price ranges of family entertainment budgets, 2016 vs 2019
Visiting a theater is a comfortable way to spend a night out
Figure 20: Preference of out-of-home leisure activities, August 2019
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Three chains crowd the market
Finding new ways to engage the same audience
Shooting for the moon but getting stuck in the past
New models impacting theater landscape
MOVIE THEATER CHAINS
Three chains visited by three quarters of moviegoers
AMC
Regal
Cinemark
The rest
Figure 21: Theater chain visited most frequently, by share of moviegoers, September 2019
Age shows differentiation in brand preferences
Figure 22: Theater chain visited most frequently, by age, September 2019
Regional access heavily impacts theater chain visits
Figure 23: Theater chain visited most frequently, by region, September 2019
WHAT’S WORKING
Theaters take the subscription game on themselves
Horror presents value for moviegoers, studios
Dynamic ad offerings before movies
WHAT’S STRUGGLING
Hard times for small theaters
Third-party subscriptions couldn’t find footing
Luxury chains struggle in value-driven market
A cool summer at the box office
Technology didn’t catch up for film releases
WHAT TO WATCH 
Variable pricing helps find value in any genre
Advertising to affluent moviegoers
Political climate impacting releases
How theaters respond to Netflix’s theatrical ambitions
Extending influence beyond the big screen
THE CONSUMER – WHAT YOU NEED TO KNOW 
A stable share of moviegoers
Growing concessions as part of a night out
Movie theaters winning overall, but at-home preferences highlight opportunities
Comfort, pricing crucial to improving movie theaters
Opportunities to reach horror and romance fans
Moviegoers seeing less value in a theater experience
Investing in moviegoers and the quality of movies
MOVIE THEATER ATTENDANCE AND FREQUENCY
Most adults still go to the movies
Figure 24: Most recent movie theater visit, September 2019
Frequency of attendance has not changed
Figure 25: Frequency of movie theater visits, September 2019
Cinemark patrons frequent the theater
Figure 26: Frequency of movie theater visits, by preferred theater chain, September 2019
CONCESSIONS AND DINING
Theaters compete on experience, not on food quality
Figure 27: Home vs theater – Food preferences, September 2019
Tried and true concessions remain moviegoing favorites
Figure 28: Movie theater concessions purchased, September 2019
Younger generations more experimental with food options
Figure 29: Movie theater concessions purchased, by generation, September 2019
AMC, Cinemark patrons want more than just popcorn
Figure 30: Movie theater concessions purchased, by preferred theater chain, September 2019
MOVIE THEATERS VS HOME ENTERTAINMENT
Winning on overall experience, losing on the specifics
Figure 31: Home vs theater – Movie experience, September 2019
A nice night out without kids
Figure 32: Home vs theater – Social experience, September 2019
Holding out for the heroes
Figure 33: Home vs theater – Genres, September 2019
MOVIE THEATER IMPROVEMENTS
Comfort beats reservations for seating
Figure 34: Improvements to movie theaters – Seating, September 2019
Pricing can be improved for loyal patrons
Figure 35: Improvements to movie theaters – Pricing and loyalty, September 2019
Quality of existing services might already be high
Figure 36: Improvements to movie theaters – Quality, September 2019
Value comes in different forms depending on theater chain
Figure 37: Improvements to movie theaters, by preferred theater chain, September 2019
WHERE TO REACH GENRE ENTHUSIASTS
Young horror fans looking to the future
Figure 38: Mobile sites visited by all moviegoers vs horror moviegoers, October 2017-November 2018
Love is love is love is love is also buying a gym membership
Figure 39: Mobile sites visited by all moviegoers vs romance moviegoers, October 2017-November 2018
IDEAL PRICE OF A MOVIE THEATER VISIT
Optimal price of a theater visit is $14
Figure 40: Price Sensitivity – Optimal price, September 2019
Anything more than $20 can be too expensive
Figure 41: Price Sensitivity – Threshold prices, September 2019
ATTITUDES TOWARD MOVIES AND MOVIE THEATERS
Subscription services will drive growth in movie theaters
Figure 42: Attitudes toward movie theater loyalty, September 2019
Seeing good movies as soon as possible
Figure 43: Attitudes toward movie quality and reviews, September 2019
Supporting original ideas from trusted creators
Figure 44: Attitudes toward creators and original movies, September 2019
Moviegoers are coming early and prepared
Figure 45: Attitudes toward pre-movie entertainment, September 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Behavioral data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 46: Total US sales and forecast of movie theater revenue, at inflation-adjusted prices, 2014-24
Figure 47: Total US sales and forecast of box office revenue, at inflation-adjusted prices, 2014-24
Figure 48: Total US sales and forecast of movie theater concessions revenue, at inflation-adjusted prices, 2014-24
Figure 49: Total US sales and forecast of movie theater advertising revenue, at inflation-adjusted prices, 2014-24
APPENDIX – PRICE SENSITIVITY ANALYSIS 
Methodology
Figure 50: Price Sensitivity – Price Sensitivity aggregate table, September 2019
Figure 51: Price Sensitivity – Price Sensitivity aggregate table, September 2019