Supply and Demand Analysis

Topics: Supply and demand, Movie theater, Film Pages: 3 (751 words) Published: October 22, 2008
Supply & Demand Analysis2

The advertising industry goes through many peaks and valleys depending on the economic stability of the country and the confidence of consumers. The effectiveness of advertising within any given industry solely relies on the demand of the people for certain products. Corporations supply many forms of advertising in order to meet the demands of consumers including print, television and billboards. Many factors affect supply and demand of in-theater advertising such as company budgets, theater attendance, cost of tickets/concessions and the type of movies that are relased.

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Product/Service: National CineMedia, LLC
Headquartered in Centennial, CO, National CineMedia (NCM) operates the largest digital in-theater network in the country through long-term relationships with its founding members United Artist, Cinemark and AMC – the three largest movie theater operators in the United States. NCM also has relationships with several affiliate theater operators in the country such as Kerasotes, Good Rich and Hollywood, to name a few. National CineMedia is most noted and recognized for producing and distributing its pre-show feature program FirstLook. In addition, NCM solicits contracts from regional and national clients to advertise on the big screen in theaters, on lobby displays and on concessions cups, bags and cartons. Probable Demand Shifters/Drivers

The law of demand is much more than evaluating what consumers want, it focuses on the amount of a good or service that customers are not only willing, but able to buy. Usually, demand drops when price rises.

As with most other industries in the United States, the most obvious demand shifter within the in-theater advertising industry is the amount of available monetary resources. Within this

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business sector, the actual customers or people who would have significant impact on the...
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