Industry Analysis & Industry Trends
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... purchase to read more
Industry Report - Industry Investment Chapter
The Movie Theatres industry has a high level of capital intensity, largely due to the rapid adoption of digital screens, projection technology and auditorium upgrades, including stadium seating and higher-quality speaker systems. The installation of IMAX and 3-D projection, in particular, has raised capital intensity for the industry. In 2017, IBISWorld estimates that the average exhibitor spends $0.43 in capital investment for every $1.00 spent on wages and labour. Renovation and upgrade activity has raised the industry's depreciation costs to 5.9% of revenue.
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