Box Office Meltdown

1
Box Office Meltdown

• Matthew Milko

2
Movie Theaters

• 1896 First Movie Theater Vitascope Hall
• in New Orleans, Louisiana

3
Movie Theaters

• 1957 First North American Theater with 2
  screens The Elgin Theater in Ottawa, Canada

4
Movie Theaters

• 1963 AMC Theaters creates first Multiplex

5
Movie Theaters

• 1995 First Megaplex (18 or more screens) in
  United States is opened by AMC in Dallas, TX

6
How do Theaters make money?

• A movie theater will split the gross ticket
  revenue 50/50 with the Movie Studio. Some studios
  demand 70-90 of the Ticket Sales.
• Concession Stands Popcorn, Coke, Candy, etc.
• Movie Theatres depend on high ticket sales in
  order to make money.

7
Why do People go to the Movies?

• Movie Theatre Experience
• Event (Family, Dating, Friends, etc.)
• Large Audience
• Large Screen
• Comfortable Seats
• Popcorn/Candy
• High Quality sound system

8
Why do People go to the Movies?
9
Why do People go to the Movies?
10
Why the Low Ticket Sales?

• 2005 Largest box office drop in Two Decades
• 9.4 billion down to 8.9 billion
• From 2002-2006 there was a 14.6 decrease in
  ticket sales
• 2000-01 6 drop in attendance put many theatre
  chains in bankruptcy.

11
Why the Low Ticket Sales?

• High Ticket Prices (8 or higher at night)
• High Concession Prices (Lg. Popcorn and Lg. Coke
  9
• Increased minutes in Advertisements and Previews
  (15-20min before Feature Presentation)
• Growing use of Cell Phones
• Talking
• Over seating
• Problems with Audio or Projector
• Bad Seats
• Film Quality Declining

12
Why the Low Ticket Sales?

• Short Term Profitability in Exchange for
  Alienating Core Audience

13
(No Transcript)
14
Improved Home Theater Viewing

• Lower prices in Hi-Def Widescreen/Flatscreen TVs
• Lower Prices in High Quality Sound Systems
• Private of own home
• Netflix and Blockbuster Online feed DVDs to Home
  Theatres

15
Improved Home Theater Viewing
16
Improved Home Theater Viewing
17
Improved Home Theater Viewing

• Window between Movie Theatre release of a Movie
  to DVD Release is decreasing
• Used to be 6 months
• Now Usually around 4 months
• Children Movies 3 months
• Less Time in Theater Less Money

18
Solutions?

• Lower Ticket Prices
• Extend Matinee (afternoon hours)
• Lower Concession Prices
• Assigned Seating
• Ban Cell Phones
• Improve Quality of Films

19
Box Office Meltdown

• Movie Theatres and Movie Studios must work
  together to raise Movie Attendance.
• If not, Movie Theaters will go out of business
  and Movie Studios will have to restructure their
  whole business plan.

20
Box Office Meltdown

• 1940s 60 of population went to the movies
• Today 9 of Population

21
Box Office Meltdown

• http//en.wikipedia.org/wiki/Movie_theatres
• www.slate.com
• http//www.thehilltoponline.com
• http//www.thebigpicture.com
• http//www.imdb.com
• http//www.boxoffice.com