Movie Theaters in the US Industry Market Research Report Now Available from IBISWorld

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Positive trends in consumer spending and a revival in movie attendance will benefit the industry over the next five years. Movie theaters will invest in technologies like 3-D to boost demand and increase ticket prices, supporting profitability. While competition from alternative services like video on demand remains, demand from moviegoers will remain steady. For these reasons, industry research firm IBISWorld has added a report on the Movie Theaters industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Movie theaters will invest in digital and 3-D technologies, yielding higher profitability

A gradual recovery in business and consumer spending and the lagging recovery in unemployment continue to hinder demand for the Movie Theaters industry. Enhanced cinema experiences like 3-D technology and luxury theaters attract a steady audience, partly counterbalancing low consumer spending. As a result, industry revenue is expected to decline at an annualized rate of 0.9% over the five years to 2012; this growth includes an expected increase of 0.2% in 2012. IBISWorld industry analyst Agata Kaczanowska says that increasing disposable income growth will drive consumer spending and contribute to revenue of $13.2 billion in 2012.

The Movie Theaters industry competes with many video product viewing and access alternatives, including cable and satellite TV, iPods, cell phones and internet movie downloads to computers and game consoles. This competition is a major driver for investment in theaters, but it has also spurred some companies to consolidate or declare bankruptcy. Several major players have closed underperforming locations and made significant acquisitions elsewhere, such as Regal Entertainment Group's purchase of some AMC Entertainment theaters and AMC's acquisition of Kerasotes ShowPlace Theaters, says Kaczanowska. Another significant acquisition in the industry is expected in 2012 because a Chinese corporation, Wanda, has announced plans to purchase major company AMC Entertainment. This new parent company is anticipated to finance additional investment in theaters. Major operators are investing in digital screens, improved Dolby sound equipment and stadium seating. The popularity of 3-D movies has supported these theater investments. Operators charge premium prices for 3-D movies and offer an experience that few people can replicate at home. Industry profitability continues to improve as admission prices escalate and attendance rises. However, promotional discounting still prevails, catering to low disposable incomes and consumer sentiment.

In 2012, the industry's top players are the Regal Entertainment Group, AMC Entertainment Inc. and Cinemark Holdings Inc. Concentration has increased since 2007 because of rampant industry consolidation due to large theater chains significantly investing in new locations and technologies. Industry concentration is expected to increase in the near future due to further consolidation pressure caused by low audience and revenue growth and lower-than-expected profit margins. In the five years to 2017, the industry will benefit from increasing personal disposable income, which is expected to stimulate consumer spending. During this time, revenue is projected to increase. IBISWorld forecasts that companies will continue to invest in acquisitions and digital and 3-D technologies, keeping profit fairly steady during the next five years. For more information, visit IBISWorld’s Movie Theaters in the US industry report page.

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IBISWorld industry Report Key Topics

This industry is made up of businesses that primarily exhibit movies. It includes cinemas, drive-in and outdoor movie theaters, and film festival exhibitors.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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