Big screen: Rising disposable income will boost demand, though competition will hamper growth

The Movie Theaters industry has grown over the past five years, despite strong external competition. With increases in per capita disposable income and the success of blockbuster films over the period, industry revenue grew despite competition from substitute film viewing methods, other forms of entertainment and a decrease in total theater attendance. The most competitive operators focus on keeping their projection and audio systems upgraded, which will continue to drive capital investment over the five years to 2023...purchase to read more.

Industry Statistics & Market Size
Revenue
$17bn
Annual Growth 13-18
2.7%
Forecast Growth 18-23
Profit
Employment
155,057
Businesses
4,734

Industry Threats & Opportunities

  • Admissions have slowly declined, leading to an increase in acquisitions of unprofitable players
  • Theaters are enhancing amenities and upgrading seats and services
  • Per capita disposable income is projected to rise, spurring movie theater spending
  • Industry Report - Industry Key Buyers Chapter

    The Movie Theaters industry has a medium level of market share concentration, with the three largest companies accounting for an estimated 62.1% of industry revenue in 2018. Over the past five years, the market concentration of the industry has increased, having been lower in 2013 at 54.2%. This increase over the period has been primarily driven by AMC’s acquisition of Carmike Cinemas Inc. The acquisition substantially increased AMC’s market share, and therefore the industry’s, after it was completed toward the end of 2016. This acquisition activity and market concentration is congruent with an industry in the mature phase of its life cycle.Besides acquisitions that took place over the period, the structure of the industry lends itself to a medium level of market concentration. Typ...purchase to read more.

    Additional Insights for the Movie Theaters Industry

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

  • Ability to quickly adopt new technology
  • Access to multiskilled and flexible workforce
  • Being part of a group buying, promotion and marketing scheme
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Number of broadband connections in the Movie Theaters industry impact industry performance..

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    What's in this report

    What is the Movie Theaters Industry?

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

    Industry Products
  • Admissions to feature films
  • Food and beverage sales
  • Advertising revenue
  • All other
  • Industry Activities
  • Operating movie theaters
  • Operating drive-in movie theaters
  • Film festival exhibition
  • Motion picture exhibition for airlines
  • 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
  • Number of broadband connections
  • External competition for the Movie and Video Distribution industry
  • Number of K-12 students
  • Technological change for Television Networks and Providers

  • Current Performance
  • Online competition
  • 3D on the rise
  • Revenue increasing, attendance decreasing
  • Consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Subdued growth
  • Competition: the sequel
  • Table: Movie Theaters Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Confectionery Wholesaling
  • Movie & Video Distribution
  • Movie & Video Production
  • Soft Drink, Baked Goods & Other Grocery Wholesaling

  • Products & Services
  • Admissions to feature films
  • Food and beverage sales
  • All other
  • Advertising revenue
  • Chart: Movie Theaters Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 40 and older
  • Consumers aged 17 and younger
  • Consumers aged 25 to 39
  • Consumers aged 18 to 24
  • Chart: Major Market Segmentation for the Movie Theaters 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 Theaters

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    AMC Entertainment Inc., Regal Entertainment Group, Cinemark Holdings Inc.,
  • Table: AMC Entertainment Inc. - financial performance
  • Table: Regal Entertainment Group - financial performance
  • Table: Cinemark Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Movie Theaters 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 Theaters 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
    Table: Industry Financial Ratios
    Blockbuster
  • A highly successful movie.
  • Box Office
  • The total sales of admissions for a specific movie or for a year.
  • Concessions
  • Food or drink sales.
  • Video-On-Demand (Vod)
  • An internet-based technology that allows subscribers to watch programming in real time or download programs and view them later.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Movie Theaters can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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 Theaters:
    • 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 Theaters 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 Theaters, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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