I. Case Synopsis
Motion pictures are a key driver of the market for entertainment products, one of the largest export markets in US. Motion picture industry consists of three stages: studio production, distribution, and exhibition. The studios produce the lifeblood of the industry, the films that are its content. The biggest players at this level are the majors, big studios which integrate production and distribution, as do the slightly smaller mini-majors. The next stage is distribution. Distributors are the intermediaries between the studios and exhibitors. Distribution entails all steps following a film’s artistic completion including marketing, logistics, and administration. Distributors coordinate the manufacture and distribution of
Theaters have implemented digital content and 3D but it’s not enough to keep up with the competition of technology. Furthermore, focusing only on 3D may result in more action movies and fewer comedies and dramas, which could alienating the non-core audience for movies. Besides, the evidence is mixed that 3D is having a positive impact on exhibitors’ bottom lines. The argument is towards the benefits that have yet to accrue to exhibitors or are being appropriated by studios, because 3D’s cost savings will largely accrue to distributors. Overall, revenues per admission are increased but these are split with studios.
There are many things that the movie industry competes with. However, most extracurricular or leisure activity is considered a competitor in the movie industry although still DVD and video rental stores are serious competitors to the movie industry. In fact, the unique value proposition offered by movie theaters’ large screens, the long wait for DVD release, and advantages of theatrical sound systems also appear to be fading.
Finally, we could see that the demand to the movie exhibition industry is huge, the companies should not just think about changing whenever or whatever they want because there is a point when people will literally just stop coming because they can’t afford it. They also should pay attention of their lack of content, even with expectedly