2015 was a record breaking year for box office revenues. Considering this fact and the presence of numerous multiplex cinemas scattered about almost every city in the United States, many might be surprised to learn that cinema attendance, as a percentage of the population, is among the lowest it has ever been. This paper will seek to explain this conundrum by examining forces that have impacted the demand of viewing movies at cinemas throughout history.
The Origins of Movie Theaters
Various devices for displaying crude animations and slideshows existed since the 17th century; however, it was not until the late 1800s that film, as it is known today, came into existence. One of the earliest devices for viewing these films was the Kinetoscope, …show more content…
In fact, it is said that the Great Depression actually amplified movie attendance as it gave people an escape from the cold and the bitter reality of daily life. ,iv Film attendance reached an all-time high in 1930; one year after the start of the Great Depression.vi At that time, 65% of the population went to the movies each week.i However, with unemployment reaching an all-time high in 1933, movie theater attendance eventually began to drop. In response, theaters dropped prices and Hollywood produced light-hearted films that featured messages of hope and inspiration. Even at its lowest point in the 1930s, 40% of the population still attended movies weekly.i
Movie attendance began to rebound around 1938, at the start of WWII. At that time, movie theaters were often attended to get news and updates about the war. Following the war, returning troops went to theaters for a sense of nostalgia. This, the wide-spread use of color, and better special effects brought demand in the early 1940s close to its all-time high.vii
Movie Theater Demand’s …show more content…
To maintain revenues, theaters have increased ticket prices and many have added features such as premium seating, alcohol sales, and waiter service. In doing this, theaters have reduced demand but set new box office profit records.
In the coming years, it is likely that movie theater attendance in the US and Canada will continue to decline; however, attendance in Asia and other developing international markets will likely offset this reduction. China, in particular, is a major growth market. The Chinese box office grew by almost 50% in 2015 and is set to be the largest movie market by 2017.
Moving forward, demand for seeing films in theaters will likely continue to be negatively impacted with the arrival of new technology and forms of entertainment. Virtual reality googles, for instance, are an emerging threat to theaters as they might allow for a more immersive movie-watching experience at home. Because of such threats and the overall decline in demand, new theater development will likely subside and theaters that are constructed will likely have increasingly smaller
The Origins of Movie Theaters
Various devices for displaying crude animations and slideshows existed since the 17th century; however, it was not until the late 1800s that film, as it is known today, came into existence. One of the earliest devices for viewing these films was the Kinetoscope, …show more content…
In fact, it is said that the Great Depression actually amplified movie attendance as it gave people an escape from the cold and the bitter reality of daily life. ,iv Film attendance reached an all-time high in 1930; one year after the start of the Great Depression.vi At that time, 65% of the population went to the movies each week.i However, with unemployment reaching an all-time high in 1933, movie theater attendance eventually began to drop. In response, theaters dropped prices and Hollywood produced light-hearted films that featured messages of hope and inspiration. Even at its lowest point in the 1930s, 40% of the population still attended movies weekly.i
Movie attendance began to rebound around 1938, at the start of WWII. At that time, movie theaters were often attended to get news and updates about the war. Following the war, returning troops went to theaters for a sense of nostalgia. This, the wide-spread use of color, and better special effects brought demand in the early 1940s close to its all-time high.vii
Movie Theater Demand’s …show more content…
To maintain revenues, theaters have increased ticket prices and many have added features such as premium seating, alcohol sales, and waiter service. In doing this, theaters have reduced demand but set new box office profit records.
In the coming years, it is likely that movie theater attendance in the US and Canada will continue to decline; however, attendance in Asia and other developing international markets will likely offset this reduction. China, in particular, is a major growth market. The Chinese box office grew by almost 50% in 2015 and is set to be the largest movie market by 2017.
Moving forward, demand for seeing films in theaters will likely continue to be negatively impacted with the arrival of new technology and forms of entertainment. Virtual reality googles, for instance, are an emerging threat to theaters as they might allow for a more immersive movie-watching experience at home. Because of such threats and the overall decline in demand, new theater development will likely subside and theaters that are constructed will likely have increasingly smaller