Sold out: Concession sales have helped the industry maintain high profit

The Movie Theatres industry in Canada's performance largely depends on the success or failure of major film releases. Although per capita disposable income directly influences households' ability to spend on discretionary services, such as movies, the marketing efforts and popularity of blockbuster films strongly determine revenue, as movie-going is a relatively low-cost entertainment option. Movie attendance has stagnated in recent years, mostly due to external competition from substitute entertainment products and other ways of accessing films. These external forms of competition include online video, on-demand services, internet-enabled TVs, smartphones and more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Exhibitors have combated falling attendance by focusing on other revenue streams
  • The industry has rapidly adopted digital projection systems over the past five years
  • The Canadian economy is forecast to grow, facilitating greater discretionary spending
  • Industry Report - Industry Products Chapter

    AdmissionsIn 2019, accounting for 59.7% of the revenue of the Movie Theatres industry in Canada, admissions, which movie tickets, in addition to regular screenings, 3D, IMAX and other chain-specific formats, make up the majority of industry earnings. Currently, 3D movies comprise 7.3% of industry revenue while the remaining 52.4% of this segment's share of revenue is derived from 2D box office sales. Overall, the Canadian exhibition market is dominated by foreign films, the vast majority of which are produced by US companies. According to the Canadian Motion Picture Association, over 80.0% of Canadian box office revenue is regularly generated by films made in the United States. Con...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 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 12 to 17
  • Consumers aged 60 and older
  • 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
    ProfitThe average operator in the Movie Theatres industry in Canada generates profit, which is measured as earnings before interest and taxes, that amount to 12.3% of revenue in 2019, down from average margins of 14.2% in 2014. The industry’s larger companies, such as Cineplex Inc. and Landmark Cinemas, are estimated to have higher margins due to vertical integration of merchandise suppliers and economies of scale that permit them to buy in bulk. Independent theatres with only one location, conversely, typically have much thinner margins, especially those that show films on their second or third runs.The long-term trend of consolidation in the industry is leading to better margins for leaders such as Cineplex, although they incur lower margins in the short term as a result of acquisition purchases. As operators close underperforming theatres and concentrate their screens in larger establishments that offer expanded merchandising, such as full-service restaurants and alcoholic beverages, profit grows. Additionally, since exhibitors share revenue generated from ticket sales with a film’s distributor, part of the film’s rental fee structure, concessions sales, which are wholly kept by the exhibitor, have a disproportionate influence on profit margins. Accordingly, many larger movie theatre chains have focused on expanding their concessions menus to drive up these higher margin sales.WagesPurchasesDepreciationMarketingRentUtilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Movie Theatres

  • Basis of 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
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per Capita Disposable Income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A highly successful movie.
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Movie Theatres market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    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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