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Movie Theaters - US - November 2015

Published By :

Mintel

Published Date : Nov 2015

Category :

Lifestyle

No. of Pages : N/A

While the slow and stable growth of movie theaters marks a mature industry, studios and theater operators anticipate 2015 to be one of the biggest revenue generating years on record. Theaters have managed to continue generating profits by enhancing the experiential aspects of movie-going, despite competitive threats coming from a number of at-home movie viewing alternatives. Although theater audiences are declining, movie theaters are forecast to continue on the path of moderate growth, reaping the benefits of their investment in luxury seating, premium concessions, and special events over the next five years.

Table of Content

Overview

What you need to know
Definition

Executive Summary

The market
Moderate growth expected
Figure 1: Total US sales and fan chart forecast of movie theater revenues, at current prices, 2010-20
Concessions and advertising to lead segment growth
Figure 2: Total US movie theater revenues and forecast, by segment, at current prices, 2010-20
The issues
Theaters must innovate to stay relevant
Figure 3: Annual movie ticket sales, 2000-15
The majority of respondents prefer home viewing
Figure 4: Attitudes toward movie theater alternatives, August 2015
Theater selection is all about convenience
Figure 5: Factors impacting movie theater choice, August 2015
The opportunities
Appeal to key demographics
Figure 6: Movie attendance in the last six months by gender, age, race/Hispanic origin, and household income, August 2015
Movie theaters can re-anchor prices in the minds of consumers
Figure 7: Reasons for not attending the movies, August 2015
Regain lost revenue through new business models
What it means

The Market – What You Need to Know

Expectation for moderate growth, driven by ancillary revenues
Concessions and in-theater advertising are leading market segments
Increased competition dampens attendance
Revenue sharing may benefit studios and theaters alike
Population factors and leisure spending an advantage for theaters

Market Size and Forecast

Expectation for moderate revenue growth
Figure 8: Total US sales and fan chart forecast of movie theater revenues, at current prices, 2010-20
Figure 9: Total US sales and forecast of movie theater revenues, at current prices, 2010-20

Market Breakdown

Overview
Figure 10: Total US movie theater revenues and forecast, by segment, at current prices, 2010-20
Box office admissions to pace inflation
Figure 11: Total US sales and fan chart forecast of movie theater box office revenues, at current prices, 2010-20
Innovation key to concessions growth
Figure 12: Total US sales and fan chart forecast of movie theater concessions revenues, at current prices, 2010-20
Advertising revenues to climb
Figure 13: Total US sales and fan chart forecast of movie theater advertising revenues, at current prices, 2010-20
Ticket prices rise moderately
Figure 14: Average US movie theater ticket prices, 2000-14
New screening formats offset declining attendance
Figure 15: US/Canada box office revenues, in billions, 2005-14

Market Perspective

At-home viewing options continue to expand
Shrinking release window spurs revenue sharing models
Figure 16: Average video release window, in days, 2000-14

Market Factors

Growth in Hispanic population will support per capita attendance
Spending in leisure categories benefits theaters

Key Players – Overview

Major chains control the bulk of US movie theaters
Figure 17: Annual revenues for major theater groups, in millions, 2014
Figure 18: Number of theaters and screens for major theater groups, 2014

Key Players

Regal Entertainment Group
AMC Entertainment
Cinemark
Carmike Cinemas
National CineMedia brings FirstLook to 20,000 theaters
Open Road Films supports AMC and Regal during ‘dump months’

Key Strategies – What You Need to Know

Experience is all
More than a movie
Safety first
Is 4D the next 3D?

Blockbusters – What’s Working

Theaters’ investment in luxury seating reaps rewards
Expanded theater menus improve concession revenues
AMC Sensory Friendly Films
Food and beverage kiosks lead to impulse purchases
Special events attract super fans

Flops – What’s Struggling

Ticket prices top out
Theater safety top of mind
DOJ investigates anti-competitive environment
Risky environment breeds cautious movie-making
Figure 19: Domestic and worldwide gross revenues from the Pirates of the Caribbean movie series, 2003-11
Piracy threatens small-budget movies

Previews – What’s Next

Gamers take over movie screens
4D movie theater Expansion
Movie theater subscription services
Crowd sourced screenings

The Consumer – What You Need to Know

Majority of Americans have seen a movie in the last six months
The closest movie theater wins
Kids are influencers
Friends are likely companions and a trusted resource for reviews
Concessions are crucial
Engaged moviegoers likely to use mobile apps
High prices are an obstacle to frequent movie going

Movie Theater Attendance

Attendance continues to wane
Figure 20: Annual movie ticket sales, 2000-15
The average American has gone to the movies in the last six months
Studios and theaters focus on young audiences
Figure 21: Top grossing films, by year, 2000-15*
Household income has little impact on attendance
Hispanic moviegoers likely to be frequent attendees
Figure 22: Movie attendance in the last six months by gender, age, race, Hispanic origin, and household income, August 2015
A third of moviegoers see 1-2 movies in a 6-month period
Figure 23: Frequency of movie attendance in the last six months by age, August 2015

Choosing a Movie Theater

Moviegoers look first for proximity
Figure 24: Factors impacting movie theater choice, August 2015
Men more apt to seek out specific screen formats
Figure 25: Factors impacting movie theater choice, by gender, August 2015
Black moviegoers look to avoid crowds
Figure 26: Factors impacting movie theater choice, by race, August 2015

The Family Trip to the Movies

Parents with young kids are likely moviegoers
Figure 27: Frequency of movie-going, by parental status, August 2015
Kids often decide which movie to see
Figure 28: Kids’ movie attendance in the last three months, 2006-15
Previews persuade kids 6-11
Figure 29: Kids’ reasons for going to the movies, April 2014-June 2015

Reasons to Go to the Movies

Adult moviegoers more likely to attend with a friend than with a date
Figure 30: Reasons to go to the movies, by age, by marital status, August 2015
Word of mouth inspires movie attendance
Hispanic moviegoers anticipate opening weekend
Blacks interested in films with specific actors
Figure 31: Reasons to go to the movies, by Hispanic origin, by race, August 2015

Movie Theater Purchases

The importance of popcorn
A subscription model for theaters
Figure 32: Select movie theater purchases – Have purchased and interested in purchasing, by gender, August 2015
Household income and the premium movie experience
Hispanic moviegoers spend on all the extras
Figure 33: Select movie theater purchases, by Hispanic origin, August 2015
Black consumers interested in movie theater dining
Figure 34: Select movie theater purchases, by race, August 2015
Mobile app usage correlated with purchases
Figure 35: Select movie theater purchases, by app usage, August 2015

Encouraging Theater Attendance

Ticket prices continue to be the primary barrier
Opportunity for theaters to play match-maker
Figure 36: Reasons for not attending the movies, August 2015
The majority of people prefer home viewing
Figure 37: Attitudes toward movie theater alternatives, by moviegoers and non-moviegoers, August 2015
Television renaissance brings movie stars to the small screen

The Impact of Previews and Reviews

Audience reviews are a trusted source
Movie trailers delight moviegoers and non-moviegoers
Figure 38: Attitudes toward movie reviews, by all and moviegoers, August 2015

Attitudes toward 3D and IMAX

Recent moviegoers more willing to pay for 3D
Figure 39: Attitudes toward 3D, by recency of movie attendance, August 2015
Black moviegoers less familiar with IMAX format
Figure 40: Attitudes toward 3D and IMAX, by race, August 2015

Key Drivers Analysis – Encouraging Frequent Attendance

Figure 41: Key drivers of attitudes toward movies (any agree) – Odds ratio, B value, % agree, August 2015
Figure 42: Key drivers of attitudes toward movies (any agree), August 2015
Figure 43: Key drivers of attitudes toward movies (any disagree) – Odds ratio, B value, % disagree, August 2015
Figure 44: Key drivers of attitudes toward movies (any disagree), August 2015

Appendix – Data Sources and Abbreviations

Data sources
Fan chart forecast
Consumer survey data
Key drivers methodology
Abbreviations and terms
Abbreviations
Terms

Appendix – Market

Figure 45: Total US sales and forecast of movie theater revenues, at current prices, 2010-20
Figure 46: Total US box office revenues and forecast, at current prices, 2010-20
Figure 47: Total US concession revenues and forecast, at current prices, 2010-20
Figure 48: Total US movie theater advertising revenues and forecast, at current prices, 2010-20
Figure 49: Total US revenues and forecast of other income categories, at current prices, 2010-20
Figure 50: Market share of movie theater market segments, 2013-15
Figure 51: Title of movie most recently seen, August 2015

Appendix – Key Players

Figure 52: Domestic and worldwide gross revenues from the Pirates of the Caribbean movie series, 2003-11
Figure 53: Annual US movie ticket sales, 2000-15
Figure 54: Total domestic movie gross, US and Canada, by month, in millions, January 2014-December 2014

Appendix – Consumer

Figure 55: Movie theater attendance among kids, 2006-15
Figure 56: Teens reasons for going to the movies, April 2014-June 2015
Figure 57: Movie theater companions for teens, April 2014-June 2015

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