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Movie Exhibitors Financial Analysis Paper

1300 Words6 Pages

Financial Analysis The primary functional activities driver of the movie exhibitors is seeking a financial strategy that will allow them to focus on their financial challenges to keep a competitive position in the industry. Over the past decade, movie attendance has decreased tremendously and the cost of the studio required technology upgrades have created an undesirable situation. Yahoo industry analysis on the movie industry, as presented in the graph below, shows the movie exhibitors have not seen substantial growth since 2012 when looking at the main four theaters. Financials for 2012 retrieved from Hoover’s database on the four main movie exhibitors are shown in the graph below. Carmike and Cinemark are the only two of the top movie …show more content…

Alternative content is classified as any content that is not a motion picture. Examples of alternative content mentioned in the case are concerts, live concerts and theater, sporting events, television series premieres and finales. The basis of this initiative is to fill the seats of movie theaters on Monday through Thursday, when there are typically higher vacancies in theaters. This opportunity will make exhibitors less reliant on studios for profits. Dynamic pricing was another opportunity highlighted in the case. By incorporating demand into pricing models, exhibitors can charge lower ticket prices for less attractive shows and higher prices for more attractive shows. The dynamic pricing initiative also takes seating into consideration with the better quality seats costing more. These pricing initiatives can increase the slim margins in which movie exhibitors now face with ticket sales. International growth was another opportunity mentioned in the case. In fact, due to a 2012 acquisition by Dalian Wanda Group Corp., AMC can grow to be the largest global exhibition company. This has the potential to open the door for many more opportunities internationally for not only AMC, but for the other major exhibitors in

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