Sensitive Analysis on Movie industry

Sensitivity Risk Analysis Sensitivity risk is forecast to be LOW over the outlook period, down from MEDIUM-LOW in 2013. The two factors with the most significant impacts on the industry are per capita disposable income and external competition. When there is a rise in per capita disposable income, risk will fall; whereas a rise in external competition will cause industry risk to increase. Per capita disposable income: Movie attendance relies on changes in household disposable income, which is affected by movements in the employment rate and in tax and interest rates. Consumers may defer or reduce trips to the movies during difficult economic times, as they concentrate more on increasing their savings or repaying debt. This factor's contribution to risk is expected to decrease in the coming year. External competition: Increasingly, cable, satellite TV, online streaming platforms and other entertainment products are appearing in households and lowering demand for the Movie Theater industry.
This factor's contribution to risk is expected to remain the same in the coming year. Number of broadband connections: The number of broadband connections indicates the extent to which consumers use high-speed internet for a variety of purposes, including as a way to access entertainment.
With the rapid rise in broadband connection numbers, more consumers are using the internet to download or stream movies, which directly reduces demand for the Movie Theaters industry. The number of broadband connections is expected to rise in 2014. This factor's contribution to risk is expected to decrease in the coming year. Technological change: As movie theaters continue to switch to digital and 3D projection systems, industry revenue increases because higher ticket prices can be justified. Advances in movie-making and projection technologies have helped to stimulate demand for cinematic screenings. Technological change for
television