Movie Theaters - US - February 2008

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
• Movie exhibitor revenues rebound but admissions stay flat
• Cinema advertising is the fastest-growing segment of theater revenues
• Home viewing of movies detracts from box office
• More of the same from Hollywood studios
• Will stars always matter?
• Traditional movie adspend down, but "independent" label spend up
• Attention turns to Boomers to grow market
• Trend toward larger theater complexes and bigger screens continues
• Cost is primary deterrent to theater attendance
• Screen size and leaving the house are biggest advantages of cinema
• Closest theater is not necessarily most frequented
• Market Size and Forecast
• Key points
  • Figure 1: Movie theater admissions, 2002-07
  • Figure 2: Total domestic revenues of movie theater operators, 2002-12
• Competitive Context
• Competition from other sources of filmed entertainment
  • Figure 3: Annual consumption of selected filmed entertainment, hours per person per year, 2002-06
• Video-on-demand (VOD) grows
  • Figure 4: Pay-per-view and video-on-demand usage, by year, 2005-07
• Internet downloads aided by growth of broadband
• Shrinking window to home broadcast
• Better viewing equipment at home
  • Figure 5: Penetration of HDTV, 2004-07
  • Figure 6: Sizes of television(s) owed, 2004-07
• Segment Performance--Overview
• Key points
• Ancillary revenues grow faster than box office
  • Figure 7: U.S. sales and forecast of movie theater sales, at current prices, by segment, 2002-12
  • Figure 8: Cinema exhibitor sales, by revenue stream, 2005 and 2007
• Segment Performance--Admissions
• Key points
• Box office grows but admissions unlikely to recover
  • Figure 9: Graph: Movie theater admissions and average ticket prices, 2000-07
  • Figure 10: Movie theater admissions and average ticket prices, 2002-07
  • Figure 11: Sales of movie tickets at box office, 2002-12
• Segment Performance--Concessions
• Key points
• Concession revenue grows through price hikes
  • Figure 12: Average ticket and concession revenue per patron at Regal Cinemas, 2003-07
• Concessions become greater part of profit
  • Figure 13: Sales of theater concessions, 2002-12
• Segment Performance--Cinema Advertising
• Key points
• Cinema advertising positioned for 12-34 year olds
• Cinema ads draw new clients in new formats
• Cinema advertising may benefit from Hollywood writers' strike
  • Figure 14: Sales of cinema advertising, 2002-12
• Supply Structure
• Key points
• Market share changes hands but stays in the family
  • Figure 15: Box office share of major media conglomerates, 2003-07
• Studios scramble for sequels but see no boost
  • Figure 16: Movie sequels grossing over $100 million, 2002-07
• Star power lower in 18-24s
  • Figure 17: Factors in movie selection, by age, December 2007
• Market Drivers
• Greatest growth potential from aging Boomers
  • Figure 18: U.S. population and projections and average visits to the movies, by age, 2002-12
• Cutbacks in consumer spending
  • Figure 19: Reaction to rising gas prices, by age, November 2007
  • Figure 20: Change in aggregate consumer expenditures in a recession period, by category, 2002-03 and 2003-04
• Leading Companies
• Key points
• Exhibitor snapshot
  • Figure 21: U.S. box office revenues, by theater exhibitor, 2006 and 2007
  • Figure 22: Selected statistics for major U.S. theater exhibitors, 2007
• Regal Entertainment
• AMC Entertainment
• Cinemark
• Carmike
• Flurry of corporate activity
• Growth in multiple-screen complexes
  • Figure 23: Number of movie theaters in the U.S., by screen count, 2003 and 2006
• Imax 3D expansion
• Digitization of screens
• Online ticket sales
• Fandango.com
• Movietickets.com
• Innovation and Innovators
• Adult-oriented luxury theaters
• Live entertainment
• More specialty fare in the line-up for over-40s
• Faster concession lines
• Guest response systems
• Advertising and Promotion
• Overview
  • Figure 24: Media expenditures and total sales for major movie studios, 2006
• Marketing costs rise for indies
  • Figure 25: Average advertising cost of new feature films, MPAA members vs subsidiaries/affiliates, 2002-06
• Media selection
  • Figure 26: Allocation of advertising spend for MPAA member companies, by media, 2002-06
• Theater chains increase adspend
  • Figure 27: Media expenditures, by selected theater chains, 2005 and 2006
  • Figure 28: Xtreme Clip: Chicago Imax Theater, April 2007
• The Cinema Experience and Substitutes
• Frequency of usage
  • Figure 29: Movie viewing, by medium, and use of online trailers and movie websites in the past six months, December 2007
  • Figure 30: Movie viewing, by medium, and use of online trailers and movie websites in the past six months, by age, December 2007
• Reasons why Attendance is not Higher
  • Figure 31: Reasons not to go to the movies, December 2007
  • Figure 32: Reasons not to go to the movies, by age, December 2007
  • Figure 33: Reasons not to go to the movies, by household income, December 2007
• Reasons to go to Movies over Watching a DVD
  • Figure 34: Reasons for going to the movies over watching a DVD, December 2007
  • Figure 35: Reasons for going to the movies over watching a DVD, by gender, December 2007
  • Figure 36: Reasons for going to the movies over watching a DVD, by age, December 2007
• Factors in movie selection
  • Figure 37: Factors in movie selection, December 2007
  • Figure 38: Factors in movie selection, by age, December 2007
• Awareness and Enjoyment of Films at the Theater
  • Figure 39: Attitudes toward movie-going, December 2007
  • Figure 40: Attitudes toward movie going, by age, December 2007
• Theater Selection
• Factors in theater preference
  • Figure 41: Reasons for going to a theater other than the closest, December 2007
  • Figure 42: Reasons for going to a theater other than the closest, by gender, December 2007
  • Figure 43: Reasons for going to a theater other than the closest, by age, December 2007
• Attitudes Toward Pricing and Concessions
  • Figure 44: Attitudes toward pricing and concessions, December 2007
  • Figure 45: Attitudes toward pricing and concessions, by age, December 2007
• The Movie Theater as Advertising Forum
  • Figure 46: Attitudes toward advertisement at the theater, 2005 and 2007
  • Figure 47: Attitudes toward advertisements at the theater, by age, May 2006-June 2007
• Taking the Kids to the Movies
  • Figure 48: Reasons to go to the movies over watching a DVD, by presence of children in household, December 2007
  • Figure 49: Factors in movie selection, by presence of children in household, December 2007
  • Figure 50: Impact of children on movie choice, by age, December 2007
  • Figure 51: Attitudes toward movie going, by presence of children in household, December 2007
  • Figure 52: Attitudes toward movie theaters, by presence of children in household, December 2007
  • Figure 53: Attitudes of parents toward childcare at the cinema, by age, December 2007
• Appendix: Additional Results by Gender
  • Figure 78: Movie viewing, by medium, and use of online trailers and websites, by gender, December 2007
  • Figure 79: Attitudes toward movie going, by gender, December 2007
  • Figure 80: Attitudes toward movie theaters, by gender, December 2007
  • Figure 81: Reasons not to go to the movies, by gender, December 2007
  • Figure 82: Factors in movie selection, by gender, December 2007
• Appendix: Results by Race and Ethnicity
  • Figure 83: Movie viewing, by medium, and use of online trailers and websites in the past six months, by race/ethnicity, December 2007
  • Figure 84: Reasons not to go to the movies, by race/ethnicity, December 2007
  • Figure 85: Reasons for going to the movies over watching a DVD, by race/ethnicity, December 2007
  • Figure 86: Factors in movie selection, by race/ethnicity, December 2007
  • Figure 87: Attitudes toward movie going, by race/ethnicity, December 2007
  • Figure 88: Reasons for going to a theater other than the closest, by race/ethnicity, December 2007
• Appendix: Other Useful Consumer Tables
  • Figure 89: Movie viewing, by medium, and use of online trailers and websites in the past six months, by household income, December 2007
  • Figure 90: Reasons for going to the movies over watching a DVD, by household income, December 2007
  • Figure 91: Factors in movie selection, by household income, December 2007
  • Figure 92: Attitudes toward movie going, by household income, December 2007
  • Figure 93: Reasons for going to a theater other than the closest, by household income, December 2007
  • Figure 94: Attitudes toward movie theaters, by household income, December 2007
• Appendix: Trade Associations