Brief Excerpt from Industry Overview Chapter:
Companies in this industry exhibit motion pictures at indoor movie theaters, film festivals, and drive-in theaters. Major US companies include AMC Entertainment and Cinemark; leading companies based outside the US include Canada's Cineplex, the UK's Cineworld, and China's Wanda Cinemas.
Personal income and leisure time drive demand. The profitability of individual companies depends on securing access to popular movies and sales of high-margin food and beverages. Large companies have advantages of scale in negotiating with movie distributors, marketing, and purchasing. Small companies can compete effectively by specializing in movie type or audience, or by providing better service and amenities. The US industry is highly concentrated: the top 50 companies account for more than 80% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Ticket sales account for more than 60% of US industry revenue; food and beverage sales for more than 30%. Other sources of revenue include on-screen advertisements, facility and concession rental during nonpeak hours, and amusement machine use.
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