“The Movie Theatre Industry”
Describe the five competitive forces in this industry.
There are many things that the movie industry competes with. However, most extracurricular or leisure activity such as college or professional sports is considered a competitor in the movie industry. Interesting enough, research has found that people who rent and/or buy DVD’s and videos are more likely to attend movies at the theatre than those who don’t rent or purchase. DVD and video rental stores are still a serious competition to the movie industry. Record movie rentals throughout America have been recorded by such giants as Netflix, Blockbuster and Wal-Mart. Customers seem to be attracted to “no late fees”, low cost renting, and the personal convenience of watching a movie in the comfort of their own home. Sales of DVD players has also risen with a record 80% of US households reportedly owning one of these devises. With more people spending time at home and with family, as well as more Americans watching what they spend, it is sensible that more and more households would embark upon purchasing another convenience item such as a DVD player. Also, with the average price down to around $100.00, it is logical that the DVD player will only become more popular. Home theatre systems have also made a large impact on the theatre industry. In 2005, this technological advancement was the most sought after electronic system for new homes. It seems that consumers have finally said no to the rising price of movie tickets and concession stand snacks and beverages. Furthermore, with the introduction of high definition television (HDTV), picture and sound quality in a confined cozy living room is a better attraction than that of sometimes loud and crowded theatre seating. Cable and Satellite Television has also made its mark on the industry. Between 2002 and 2006, cable TV subscriptions grew 17%. In the US alone, there are over 9,000 cable providers supplying more than 400...
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