Author: Mintel Group Ltd.
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Movie Theaters - US - November 2014
Scope and Themes 
 
What you need to know
Many Americans devote the majority of their leisure time to on-screen entertainment. They are drawn to movies and want to see blockbuster hits, but where they go to do so is of little significance beyond the price of tickets and movie theaters’ proximity to their homes or work. Exhibitors face an ongoing challenge to make their facilities stand out in the crowd and show they can offer patrons something other movie theater chains cannot. At a more basic level, movie theaters are competing with the dizzying array of small-screen entertainment options available to consumers.

This report examines how exhibitors can make their specific theaters go-to locations for movie viewing and what it will take to give Americans more incentive to go out rather than settle for cheaper and more convenient in-home entertainment options.

Definition
This report builds on the analysis presented in Mintel’s Movie Theaters – US, November 2013, as well as the May 2012, July 2011, and July 2009 reports of the same title. Readers of this report may also be interested in Movie Sales and Rentals – US, August 2014.

For the purposes of this report, Mintel concentrates on commercial cinema venues. Festivals, army bases, schools, museums, libraries, prisons, airlines, restaurants, cafés, and other venues that license films for profit are not included; only sites whose primary day-to-day function is the commercial display of cinema are considered.

Companies that own, lease, manage, or operate facilities for the day-to-day commercial display of films are the subject of this report, and will be referred to interchangeably as “movie theaters” or “exhibitors.”

Data sources
Sales data
Total movie theater revenues and segment performance are based on the US Census Bureau’s Service Annual Survey, the Bureau of Economic Analysis, and the Cinema Advertising Council. Forecasts are original to Mintel.

Consumer data
For the purposes of this report, Mintel commissioned exclusive consumer research through Lightspeed GMI to explore consumer attitudes and behaviors toward movie theaters. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in August 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents by gender, age, household income, and region so that they are proportionally representative of the US adult population using the internet. Mintel also slightly over-samples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in our survey results and to allow for more precise parameter estimates from our reported findings. Please note that Mintel’s exclusive surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

Mintel has also analyzed data from Experian Marketing Services, using the NHCS (National Hispanic Consumer Study) and the Simmons NCS Teen Study.

The NHCS was carried out from April 2013-June 2014, and the results are based on the sample of 24,073 adults (aged 18+), with results weighted to represent the US adult population. The Experian Marketing Services, Simmons NCS Teen Study was conducted during November 2012–December 2013 and based on a sample of 1,811 teenagers aged 12-17, with results weighted to represent the US teen population.

Additional data from Experian Marketing Services NHCS Adult and NCS Teen Studies are included.

Adults:

●	Spring 2013 Simmons NHCS Adult Study 12-Month, April 2012-June 2013; 24,374 adults aged 18+
●	Spring 2012 Simmons NHCS Adult Study 12-Month, April 2011-June 2012; 25,207 adults aged 18+
●	Spring 2011 Simmons NHCS Adult Study 12-Month, April 2010-June 2011; 24,456 adults aged 18+
●	Spring 2010 Simmons NHCS Adult Study 12-Month, April 2009-June 2010; 23,572 adults aged 18+
●	Spring 2009 Simmons NHCS Adult Study 12-Month, April 2008-June 2009; 25,318 adults aged 18+
●	Spring 2008 Simmons NHCS Adult Study 12-Month, April 2007-June 2008; 24,581 adults aged 18+
●	Spring 2007 Simmons NHCS Adult Study 12-Month, May 2006-June 2007; 25,375 adults aged 18+

Teens:

●	Fall 2013 Simmons NCS Teen Study 12-Month, November 2012-December 2013; 1,374 teens aged 12-17
●	Fall 2012 Simmons NCS Teen Study 12-Month, November 2011-December 2012; 1,509 teens aged 12-17
●	Fall 2011 Simmons NCS Teen Study 12-Month, October 2010-November 2011; 1,385 teens aged 12-17
●	Fall 2010 Simmons NCS Teen Study 12-Month, October 2009-December 2010; 1,443 teens aged 12-17
●	Fall 2009 Simmons NCS Teen Study 12-Month, November 2008-December 2009; 1,603 teens aged 12-17
●	Fall 2008 Simmons NCS Teen Study 12-Month, December 2007-December 2008; 1,659 teens aged 12-17
●	Fall 2007 Simmons NCS Teen Study 12-Month, January 2007-November 2007; 1,600 teens aged 12-17

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms
Abbreviations
The following abbreviations are used in this report:

3D | Three dimensional
4D | Technology that adds physical sensations such as blowing air, seat movements, vibrations, mist, and/or scent synchronized with the action of a 3D film
4K | Displays or content with 2,160 lines of resolution (with a horizontal resolution of about 4,000 pixels)
A/V | Audio-visual
CEO | Chief executive officer
CPI | Consumer Price Index
ETX | Enhanced theatrical experience
FY | Fiscal year
HBO | Home Box Office
HDTV | High-definition television
MPAA | Motion Picture Association of America
NATO | National Association of Theater Owners
NCS/NHCS | National Consumer Study/National Hispanic Consumer Study (Experian Marketing Services)
RPX | Regal Premium Experience
SD | Standard definition
sVOD | Subscription video on demand (ie subscription streaming services such as Netflix)
UA | United Artists
VOD | Video on demand
XD | Extreme Digital

Terms
The following terms are used in this report:

Moviegoer | For the purposes of this report, moviegoers are defined as consumers who have seen a movie at a movie theater in the past six months.
Megaplex | A large movie theater housing at least 15 screens.

To provide an inflation-adjusted price value for markets Mintel uses the CPI to deflate current prices. The CPI is defined as follows:

CPI

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates.
The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.
Based on Bureau of Labor Statistics definition.

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