|Last Quarterly Update:||1/16/2017|
|SIC Codes:||7832, 7833|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry exhibit motion pictures at indoor movie theaters, film festivals, and drive-in theaters. Major US companies include AMC Entertainment, Cinemark, and Regal Entertainment; leading companies based outside the US include Cineplex (Canada), Cineworld (UK), Odeon & UCI (UK), and Wanda Cinema (China).
Global movie theater box office revenue is about $38 billion per year, and the world is home to more than 152,000 cinema screens, according to the Motion Picture Association of America (MPAA). The US and Canada together are the largest market, followed by China, the UK, Japan, and India, according to IHS Screen Digest.
The US movie theater industry includes about 4,700 establishments (single-location companies and units of multi-location companies) that operate about 5,500 indoor theaters and 350 drive-ins with combined annual revenue of about $15 billion.
Personal income and leisure time drive demand. The profitability of individual companies depends on securing access to popular movies and sales of high-margin food and beverages. Large companies have advantages of scale in negotiating with movie distributors, marketing, and purchasing. Small companies can compete effectively by specializing in movie type or audience, or by providing better service and amenities. The US industry is highly concentrated: the top 50 companies account for more than 80% of revenue.
Movie theaters compete with other forms of leisure activity, including sports, hobbies, concerts, and amusement parks. Further competition comes from other forms of movie ...
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