ARE MOVIE THEATERS DOOMED? DO EXHIBITORS SEE THE BIG PICTURE AS

ARE MOVIE THEATERS DOOMED? DO EXHIBITORS SEE THE BIG PICTURE AS

24 Pages · 2008 · 173 KB · English

the release of movies in theaters today may only have enabled consumers to watch movies in places other than a movie and free-to-air television

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ARE MOVIE THEATERS DOOMED? DO EX HIBITORS SEE THE BIG PICTURE AS THEATERS LOSE THEIR CO MPETITIVE ADVANTAGE? Jon Silver School of Advertising, Mark eting & Public Relations Queensland University of Technology BRISBANE, QUEENSLAND, AUSTRALIA [email protected] yahoo.co.uk Tel: 61 7 31381001 Dr. John McDonnell School of Advertising, Mark eting & Public Relations Queensland University of Technology BRISBANE, QUEENSLAND, AUSTRALIA [email protected] Tel & Fax: 61 7 3300 4708 ARE MOVIE THEATERS DOOMED? DO EXHIBITORS SEE THE BIG PICTURE AS THEY LOSE THEIR COMPETITIVE ADVANTAGE? ABSTRACT Movie theaters in the U.S. may have recently ended a period of crisis but this paper argues that major problems are not over for the industry. Most movie theaters in the multiplex era have adopted a remarkably similar strategy which is also very vul nerable to recent trends such as the explosion of home cinema, pay TV, VOD, discount ing by mass merchandisers of DVDs, computer games and the collapse of video windows. Just as technological convergence has created a challenge for movie theatres, as it has in the past, so can new techno logies and creative use of assets combined with multiple target marketing offer a counter measure for at least some movie theatres – until the next challenge. What is unlikely to succeed is more of the same, especially when so many\ multiplex chains offer the same format as others, appear to adopt a narrow definition of what business they are in and manifest a one size should fit all appr oach to customers. The industry has employed differentiation and niche marketing much less than other industries. The very diversity of strategies needed means that all cannot be explored in this paper

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