Movie Theaters - US

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2009 - 70 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Declining admissions trend reversed by recession

Cinema experiences see competition from internet and home theater

Hollywood studios continue to dominate and seek low-risk hits

Recession boosts admissions but slows digitization

Megaplex strategy continues to perform

Studios get more creative as marketing budgets are cut

Moviegoing remains a largely impromptu activity

Comfortable seats and convenient movie times are most important factors in theater selection

Popcorn and soda tradition remains intact for now

Traditional TV and radio ads still the best way to reach moviegoers

Minority moviegoers show higher frequency of attendance

MARKET SIZE AND FORECAST

Movie theaters a growth story during recession

Figure 1: Total domestic revenues of movie theater operators, at current prices, 2004-14

Figure 2: Total domestic revenues of movie theater operators at inflation-adjusted prices, 2004-14

COMPETITIVE CONTEXT

Box office recovers but growth lags behind video games and internet

Figure 3: Hours of filmed entertainment consumption per person per year, 2003-07

Adoption of more sophisticated televisions continues

Figure 4: Types of televisions owned, 2007 and 2008

Home video revenues decline despite home theater trend

SEGMENT PERFORMANCE

Ancillary revenues grow faster through 2008

Figure 5: U.S. sales and forecast of movie theater operators, by revenue stream, 2004-14

Figure 6: Movie theater sales, by revenue stream, 2006 and 2008

SEGMENT PERFORMANCE—ADMISSIONS

2009 breaks trend as growth is driven by admissions

Figure 7: Sales of movie tickets at box office, 2004-14

Admissions boom in 2009 after weak 2008

Figure 8: Movie theater admissions and average ticket prices, 2003-08

SEGMENT PERFORMANCE—CONCESSIONS

Concessions revenues stall as consumers pull back

Figure 9: Sales of theater concessions, 2004-14

Growth of concession revenue slows even for megaplex operators

Figure 10: Average ticket and concession revenue per patron at regal cinemas, 2003-07

SEGMENT PERFORMANCE—CINEMA ADVERTISING

Cinema advertising slowed down by recession but still growing

Figure 11: Sales of cinema advertising, 2004-14

SUPPLY STRUCTURE

Blockbusters key to market share but growth through niche still possible

Figure 12: Box office share of major media conglomerates, 2007-08

Comedy genre gains share during hard times

Figure 13: Box office share, by genre, 2007-08

Studios avert risk through franchises, remakes, and building on known brands

MARKET DRIVERS

Core demographics more likely to increase attendance during recession

Recession slows revenue boost from 3D releases

Studios turn to franchise tentpoles to guarantee attendance

Figure 14: Movie sequels grossing over $100 million, 2004-08

LEADING COMPANIES

Regal and AMC outpace overall box office in admissions growth

Figure 15: U.S. box office revenues, by theater exhibitor, 2006 and 2008

Megaplex strategy continues to perform for AMC

Figure 16: Selected statistics for major U.S. theater exhibitors, 2008

Leading chains move ahead with 3D and IMAX

Personalized gift cards and promotional tie-ins make gift cards more fun

Regal seeks to expand social networking presence

INNOVATION AND INNOVATORS

AMC targets adults with new upscale concepts

Motion-enhanced seating intensifies action experience

ADVERTISING AND PROMOTION

Major studios cut back on media buys

Figure 17: Media expenditures and total sales for major movie studios, 2006 and 2007

Studios get creative to do more with less

Network TV courts movie advertisers

Figure 18: Movie studio spending on network and cable TV advertising, 2004-08

MOVIE ATTENDANCE

Age and household income are greatest determinants of movie attendance

Figure 19: Movie attendance, by age, household income and presence of children, Oct 2007-Dec 2008

CHANGE IN MOVIE THEATER ATTENDANCE

Higher box office receipts may comes from core demographics

Figure 20: Change in movie theater attendance, April 2009

Core segments of males and 18-24 year-olds are more likely to report higher attendance

Figure 21: Change in movie theater attendance, by gender, April 2009

Figure 22: Change in movie theater attendance, by age, April 2009

Financial conditions impact attendance of lower-earners and larger families

Figure 23: Change in movie theater attendance, by household income, April 2009

Figure 24: Change in movie theater attendance, by children in the household, April 2009

METHOD OF PURCHASE

Tickets still predominately purchased right before the movie

Figure 25: Method of movie ticket purchase, April 2009

Moviegoers aged 18-24 most likely to buy tickets right before movie while 24-34s most likely to

buy online

Figure 26: Method of movie ticket purchase, by age, April 2009

Males, higher earners, and families more likely to purchase online

Figure 27: Method of movie ticket purchase, by gender, April 2009

Figure 28: Method of movie ticket purchase, by household income, April 2009

Figure 29: Method of movie ticket purchase, by children in the household, April 2009

FACTORS IN THEATER SELECTION

Comfortable seating and convenient movie times are most important factors

Figure 30: Factors in theater selection, April 2009

Male respondents more likely to value megaplex qualities

Figure 31: Factors in theater selection, by gender, April 2009

Youngest respondents aged 18-24 more likely to value title selection and fun ambience

Figure 32: Factors in theater selection, by age, April 2009

Families want discounts but others want quiet

Figure 33: Factors in theater selection, by children in the household, April 2009

CONCESSIONS PURCHASED

Popcorn and drink combo still the most widely purchased concession

Figure 34: Concessions purchased at movie theater, April 2009

Popcorn tradition stronger among over-35s

Figure 35: Concessions purchased at movie theater, by age, April 2009

Kids drive concession purchases as well as alcoholic beverage sales

Figure 36: Concessions purchased at movie theater, by children in the household, April 2009

SOURCES OF INFORMATION

Internet significant but traditional media has greatest reach by far

Figure 37: Sources of information on movies, April 2009

TV, internet, and billboards more noticed by key under-35 demographic

Figure 38: Sources of information on movies, by age, April 2009

IN-THEATER ADVERTISING

Lobby and pre-show commercials more likely reach under-45s and blacks

Figure 39: Interest in in-theater advertising, by gender, age and race/Hispanic origin, October 2007-December

2008

MOVIE THEATER GIFT CARDS

Movie gift card purchase driven by children and mothers

Figure 40: Movie theater gift card purchase, by gender, age, HH income, race/Hispanic origin and presence of

children, April 2009

IMPACT OF RACE AND HISPANIC ORIGIN

Hispanics of all ages attend movies more frequently

Figure 41: Movie attendance, frequency and average times, by race/Hispanic origin and age, Oct 2007-Dec

2008

Blacks and Hispanics under 45 more likely to have increased attendance

Figure 42: Change in movie theater attendance, by race/Hispanic origin among 18-44 year-olds, April 2009

Black and Hispanic respondents more likely to look for larger screens, fun ambience, and wider

selection of concessions

Figure 43: Factors in theater selection, by race/Hispanic origin among 18-44 year-olds, April 2009

Figure 44: Concessions purchased, by race/Hispanic origin, April 2009

Black and Hispanic respondents more likely to pay attention to movie ads on radio, television,

and outdoors

Figure 45: Sources of information on movies, by race/Hispanic origin, April 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

Theater selection

Figure 46: Factors in theater selection, by household income, April 2009

Sources of information

Figure 47: Sources of information on movies, by gender, April 2009

Figure 48: Sources of information on movies, by children in the household, April 2009

Concessions purchased

Figure 49: Concessions purchased, by gender, April 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

With the launch of smaller entertainment complexes aimed more at adults (see Innovation & Innovators), it seems that the theater industry is moving toward a dual segmentation, with teenagers, young adults, and families at one end and older singles and couples without children at the other. As this trend develops, targeting should become more refined and facilities targeting each more distinct:

Theaters targeting teens, young adults, and families will aim to become bigger and more festive, with the latest in 3D and IMAX technology. These facilities may choose to incorporate forms of entertainment beyond cinema, such as video gaming (see below). The focus will be on providing a larger than life, thrill experience.

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