Concession consolation: Theatres will offset falling attendance with focus on ancillary products

Movie theatre performance is tied largely to the success or failure of major blockbuster releases. On the whole, attendance at movie theatres has been slipping, partly due to the growing popularity of video-on-demand streaming services. Exhibitors have been combating falling attendance by emphasizing concessions and other merchandising. Over the next five years, exhibitor revenue will continue to depend on films' ability to draw attendance. As major players upgrade theatres and add amenities, independent venues will find competition difficult, and many are expected to close down or be acquired by larger operators...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
0.1%
Forecast Growth 18-23
Profit
Employment
24,476
Businesses
354

Industry Threats & Opportunities

  • Exhibitors have combated falling attendance by focusing on other revenue streams
  • Digital technology offers several long-term cost savings for the industry
  • The industry will depend on the marketing efforts and excitement surrounding blockbuster releases
  • Industry Report - Industry Key Buyers Chapter

    The Movie Theatres industry in Canada has a high level of market share concentration, with the two largest theatre chains generating the majority of the industry's revenue. The combined market share of Cineplex Inc. and Landmark Cinemas account for 83.3% in 2018. Cineplex is the leading force in the industry in terms of revenue; it operates in lucrative metropolitan markets (e.g. Toronto, Montreal and Vancouver) and makes about $9.4 million per location, more than three times the industry average. The company holds a dominant 74.2% market share alone. Empire Theatres had a presence in the less-populated Atlantic Provinces before selling its theatres to Cineplex and Landmark in the end of 2013; Landmark Cinemas focuses operations in the western regions...purchase to read more.

    Additional Insights for the Movie Theatres Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Movie Theatres Industry are

  • Ability to raise revenue from additional sources
  • Access to flexible workforce
  • Access to the latest available technology
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Leisure time in the Movie Theatres industry impact industry performance..

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    What's in this report

    What is the Movie Theatres Industry?

    This industry comprises businesses that primarily exhibit movies. It includes cinemas, drive-in and outdoor movie theatres and film festival exhibitors.

    Industry Products
  • 2D box office sales
  • 3D box office sales
  • Rental of facilities
  • Concessions
  • Industry Activities
  • Operating movie theatres and cinemas
  • Exhibiting films at festivals
  • Operating drive-in movie theatres
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Leisure time
  • Canadian-dollar effective exchange rate index
  • Number of children aged 19 and younger

  • Current Performance
  • Blockbusters define industry performance
  • Upgrading theatres
  • Consolidation and competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer choice
  • Release windows and consolidation
  • Table: Movie Theatres Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Movie Theatres Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Grocery Wholesaling in Canada
  • Movie & Video Distribution in Canada
  • Movie, TV & Video Production in Canada
  • Restaurant & Hotel Equipment Wholesaling in Canada

  • Products & Services
  • 2D box office sales
  • Concessions
  • 3D box office sales
  • Other
  • Rental of facilities
  • Chart: Movie Theatres Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 25 to 39
  • Consumers aged 18 to 24
  • Consumers aged 60 and older
  • Consumers aged 12 to 17
  • Consumers aged 50 to 59
  • Consumers aged 2 to 11
  • Consumers aged 40 to 49
  • Chart: Major Market Segmentation for the Movie Theatres Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Movie Theatres

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Movie Theatres Industry

  • Industry Globalization
    Cineplex Inc., Landmark Cinemas,
  • Table: Cineplex Inc. - financial performance
  • Table: Landmark Cinemas - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Movie Theatres Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Movie Theatres Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blockbuster
  • A highly successful movie (e.g. Avatar).
  • Box Office Sales
  • The total dollar value of admissions for a specific movie or for a year.
  • Concessions
  • Food or drink sales at a theatre.
  • Video On Demand
  • An online service that permits subscribers to stream media, usually films or TV shows, or download them to view later (e.g. Netflix).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Movie Theatres market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Movie Theatres:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Movie Theatres market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Movie Theatres, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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