Companies in this industry exhibit motion pictures at indoor movie theaters, film festivals, and drive-in theaters. Major US companies include AMC Entertainment and Cinemark; leading companies based outside the US include Canada's Cineplex, the UK's Cineworld, and China's Wanda Cinemas.
Global movie theater box office revenue is about $41 billion per year, and the world is home to more than 170,000 cinema screens, according to the Motion Picture Association of America. The US and Canada together are the largest market, followed by China, Japan, India, and the UK, according to IHS Markit.
The US movie theater industry includes about 4,600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $17 billion.
Personal income and leisure time drive demand. The profitability of individual companies depends on securing access to popular movies and sales of high-margin food and beverages. Large companies have advantages of scale in negotiating with movie distributors, marketing, and purchasing. Small companies can compete effectively by specializing in movie type or audience, or by providing better service and amenities. The US industry is highly concentrated: the top 50 companies account for more than 80% of revenue.
Movie theaters compete with other forms of entertainment and leisure activity, including sports, hobbies, concerts, and amusement parks. Further competition comes from other forms of movie exhibition, including DVD, TV, video on-demand, and internet streaming. With recent advances in home theater technology, including 4K Ultra HD TVs and Hi-Res audio, consumers are able to create high-quality viewing experiences in their living rooms that rival those available at the local multiplex.
Products, Operations & Technology
Ticket sales account for two-thirds of US industry revenue; food and beverage sales for about 30%. Other sources of revenue include on-screen advertisements,
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms