Competitive Rivalry In The Movie Theater Industry

As various sectors of the economy continue to expand courtesy of technological advancements, competition equally continues to mount as various individuals and organizations enhance their grip in the market (Hudson). Given its penchant to dictate the prospects of entirely all industries, investors feel the craving need to engage the industry to scale their investment projections and take their businesses to a completely new level. According to Hudson, the current global population has a unique fascination with movies and films, thus acting as a stimulator of growth for the Movie Theater Industry. Although the film and movie consumers around the world get satisfaction from the heavy presence of movie theatres and exhibition around the world, many investors are faced with stiff competitive rivalry thus limiting their market share in the industry. In addition, the increase of …show more content…
Particularly, the distribution of movie and film theaters across the United States derives its sway from factors such as population density, availability of leisure time, as well as the obtainability of disposable incomes (IBISWorld). Accordingly, therefore, the largest region in the US, the Southeast with 25.4% population, is home to the largest number of theater outlets with approximately 20.7% movie theatre establishments. Similarly, the West region with its 17.0% population has the second-highest market share of movie outlets at 18.5% (IBISWorld). The West region includes California which hosts the largest theatre establishments and stands at 11.8% of all movie auditoriums in the US. There are over 40,000 theaters across the United States and range from large public corporations such as Regal Cinemas and AMC to small private companies such as Big Cinemas Movie and Dunellen