1) The total cost of going out to the movies is no longer limited to just buying the movie tickets. Due to additional costs like that of overpriced popcorn and soda, parking, babysitters, etc., the cost involved to watch a movie has increased exponentially. The value of going to a theater exists, if movie theaters have an advantage that provides an uncopyable, non substitutable, and unerodable experience than available on any other competitive format like PCs, Pay TV, DVDs, home theater systems, etc. This inability to recreate an experience based on the type of movie that is on exhibition influences the way the audience spends money to experience it on the big screen. In the case of Disney and Pixar, a lot of movie-goers flock to films because of the studio brand name, though that is not an industry standard. A lot of the times, brand equity is intrinsic with the format of the movie and is the driving point behind the decision to pay to view a movie at a theater. In countries like India, China, and Korea, people pay up to four times the …show more content…
During the Studio era, the Majors had control over the production, distribution, and exhibition of movies due to which theatrical releases of a film accounted for 100% revenue for a film. This meant that movies were viewable only at theaters that had contracted releases from the Majors. During the Great Depression access to radio decreased annual theater attendance, whereas the box office racked up a two-fold increase in annual attendance post World War II. However, during and post the 1950s, access to televisions in American houses decreased attendance. Eventually, movies started being marketed with an ecosystem around them and revenue generation was not limited to just