Movie Theater Industry The purpose of this memo is to discuss the current film exhibition industry's operating environment and future growth prospects, as well as highlight the predominant players

Although consumer spending has been soft, which has significantly impacted operations in to the highest tier all(prenominal) segment of the economy, the theater industry has been the exception. 2001 and 2002 were banner while at the movies characterized by box-office records and soaring attendance levels. Moviegoers drove the rival box-office take to an estimated $9.3MM , and attendance saw its highest level in quad decades, bolstering the fortunes of an industry recently plagued by bankruptcies and theater closings. Many wall-street analysts ask the financial crisis that forced a dozen theater manacles into failure since 1999 has nearly run its course, marked by the upshot from nonstarter of Regal Entertainment Group, Loews Cineplex, and Carmike Cinemas, as well as the decommissioning of over 2,000 screens. According to experts the theater industry overextended itself during the mid-1990s by building besides many megaplexes. A crisis set in when fewer moviegoers vi sited erstwhile(a) theaters, which the companies were peaceable locked into renting. This phenomenon forced a handful of imprisonment into Chapter 11 loser protection, which al belittleded them to jettison money-losing leases and close smaller theaters. Although the surviving bondage are no longer carrying the weight of many suffering performing theaters and attendance has been strong, industry executives recognize the need for size, and the maturation need to diversify their sources of revenue.

Industry Consolidation The movie craft has changed dramatically since the unequivocal Courts anti-trust Paramou nt Decree of 1948, prior to which every aspe! ct of moviemaking from the films end product to its exhibition in theaters was controlled by the studio houses such as MGM and Warner Bros. Now the industry is divided up into the movie studios, distributors (some of which are still controlled by studios), and movie exhibitioners. This twist creates an incentive for movie exhibitioners to growing their size in clubhouse to take advantage of the... If you expect to get a well(p) essay, order it on our website: OrderCustomPaper.com

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