Movie & Entertainment Industry Trends

Part
01
of eight
Part
01

US Entertainment Industry Trends

Trends in the United States entertainment industry include (a) the dominance of television shows and movies over other entertainment forms, (b) consumers' use of multiple subscriptions to customize their entertainment experience, (c) the reaggregation of entertainment services, (d) the convergence of telecommunication and entertainment content providers, and (e) the emergence of new and immersive entertainment media.

TREND 1: DOMINANCE OF TELEVISION SHOWS AND MOVIES OVER OTHER ENTERTAINMENT FORMS

  • Consumers in the United States are preferring television shows and movies over music, video games, and other entertainment forms. The biggest portion of the hours Americans spent on entertainment in 2018 was spent watching television shows and movies. While 27% of these hours were spent watching television shows and movies, only 19% were spent listening to music, and only 16% were spent playing video games.
  • The rest of the hours were spent on other activities such as social networking and reading.
  • Even though live television, digitally-recorded video, and pay television on-demand content accounted for almost 50% of the hours spent watching television shows and movies, subscription video on-demand (SVOD) providers such as Netflix, Amazon Prime, and Hulu are gaining traction. According to Kathi Chandler-Payatt, an analyst for the media entertainment industry at NPD, "while video content topped Americans’ entertainment choices last year, their viewing continued to shift toward subscription video and other digital forms of viewing."
  • In 2018, over 50% of consumers in the United States streamed video content through subscription services. Moreover, 22% of viewing hours were accounted for by SVOD providers.
  • The preference for watching television and movies is being driven by the proliferation of digital options for viewing video content.

TREND 2: CONSUMERS' USE OF MULTIPLE SUBSCRIPTIONS TO CUSTOMIZE THEIR ENTERTAINMENT EXPERIENCE

  • Consumers in the United States are carefully selecting which streaming video, television, gaming, and music services to subscribe to. It is no longer uncommon for consumers to subscribe to multiple entertainment services.
  • Of consumers in the United States in 2018, 69% had streaming video service subscriptions, 65% had pay television subscriptions, 41% had streaming music service subscriptions, and 30% had gaming subscriptions.
  • Forty-three percent of households in the United States have subscriptions to both streaming video and pay television services.
  • On average, consumers in the United States subscribe to three paid services for streaming video. Consumers willingly pay for these services mostly to access original video content (57%) and avoid ads (44%).
  • Popular entertainment subscription services include Netflix, Hulu, Amazon Prime Video for television and films, Spotify and Apple Music for music, and PlayStation Now for gaming.
  • This trend of subscribing to multiple services is being driven by the need of consumers to take charge of their entertainment experience and to tailor the entertainment experience to their own preferences.

TREND 3: REAGGREGATION OF ENTERTAINMENT SERVICES

  • It should not be overlooked, however, that more and more consumers are finding the entertainment service selection process frustrating. The growth in the number of entertainment services available has made the process more complex. As a result, signs of reaggregation have been observed in the country's entertainment industry.
  • For example, Apple is on track to launch its streaming service Apple TV+, which will allow users to watch video content from multiple networks including Starz and HBO and incorporate news and gaming subscriptions.
  • Spotify is also partnering with Hulu to offer consumers a discounted streaming music and video package.
  • It appears this reaggregation is happening to prevent costs from going up. As studios and networks (e.g., Disney and ESPN) pull content from competitors and build their own streaming services, content costs may unnecessarily increase. To counter this, some players in the entertainment industry decide to reaggregate.
  • The number of viewers in the United States who feel positive about the increase in the number of options had significantly dropped from 46% in 2017 to 29% in 2018.

TREND 4: CONVERGENCE OF TELECOMMUNICATION AND ENTERTAINMENT CONTENT PROVIDERS

  • Content providers and telecommunication providers continue to converge.
  • To illustrate, T-Mobile US, having acquired Layer 3 recently, is looking to offer pay television. AT&T is also incorporating Time Warner assets in its own entertainment offerings.
  • Verizon, which is set to offer 5G, is partnering with Apple and YouTube to offer consumers a network and content bundle.
  • With subscription streaming services becoming mainstream and consumers seeking original content, telecommunication networks are facing increased pressure to include digital content in their product and service portfolios.
  • To remain competitive, telecommunication networks are increasingly finding it necessary to own content and monetize it over their mobile and fixed networks.

TREND 5: EMERGENCE OF NEW AND IMMERSIVE ENTERTAINMENT MEDIA

  • New and immersive media will scale up in the next decade as 5G networks emerge.
  • 5G networks will bring about numerous revenue opportunities for the entertainment industry in the United States. It is expected that revenue opportunities worth $1.3 trillion will open up for the industry in the next decade.
  • Gaming service Hatch is one example of a company taking advantage of the rise of 5G networks. Hatch, in partnership with Samsung, is introducing 5G cloud gaming in the country. Its app will allow users to enjoy over 100 premium games with faster speeds and lower latency.
  • Another example is Verizon, which is teaming up with Walt Disney Studios to deliver 5G connectivity to all work aspects of Disney's StudioLab. According to Diego Scotti, chief marketing officer at Verizon, 5G has the ability to revolutionize the entertainment and filmmaking industries.
  • The development of new and immersive entertainment media, such as those powered by virtual reality and augmented reality, is being driven by the performance and technical improvements that 5G offers over 4G. Compared to 4G, 5G offers 100-times faster data speeds, 10-times lower latency, and 100-times bigger network capacity.

RESEARCH STRATEGY

To identify the trends in the United States entertainment industry, we consulted numerous reports and articles covering the latest entertainment industry developments in the country. Recent reports and articles published by credible firms and publications such as Deloitte, Hub Entertainment Research, Fierce Video, GlobeNewswire, NPD, Engadget, Mondaq, The Wall Street Journal, and Global Web Index were among the sources we consulted. As we could not locate a source that readily lists the entertainment industry trends in the country and defines for each trend the drivers and the companies that are at the forefront, we read through these reports and articles and looked for common themes. In cases where examples of companies were not readily provided, we conducted separate topic searches.


Part
02
of eight
Part
02

Global Entertainment Industry Trends

Some trends in the global entertainment industry are personalization, 5G, and the new wave of VR/AR technology.

PERSONAL AND INCREASINGLY DIGITAL

The Trend
Location Matters
  • Streaming giants such as Netflix and Amazon recently started to experiment with different price models for individual markets, taking into consideration local economic circumstances and consumer habits.
  • Amazon Prime cost one-third of the price for Japanese costumers of what it cost to Americans, even though they are both wealthy countries.
  • In less developed countries, there is a trend towards offering tiers of payments for different services.
  • For instance, in Southeast Asia, telecommunication companies often offer data, internet, and OTT services together in an affordable package.
Limited vs. Unlimited
  • Not all consumers want to pay for unlimited access; therefore, companies in different markets are offering differential pricing that goes beyond the traditional “freemium.”
  • One example of this is Alibaba in China that rolled out a premium “88 VIP” package that offers exclusive benefits, covering commerce, entertainment, and local services.
  • MoviePass, which started to offer US movie fans unlimited film admissions for a low monthly price now has shifted to a subscription system offering three different tiers of benefits.
Companies at the forefront of the trend
Drivers
Challenges
  • PwC research shows that consumers are still not satisfied with the recommendations from their streaming services, with only 21% of consumers believing that their OTT service understands what they want and 30% saying that their streaming service recommended the same content over and over again.
  • Regulator and new privacy laws around the world may pose a serious challenge to companies.
  • Issues relating to privacy and safety of personal data may limit the ability of entertainment companies to individualize the experience in the future.
  • Consumers and politics are starting to truly grasp the risks associated with the continual provision of personal data and are pressuring companies about the use and maintenance of the data collected. Personal data hygiene has become a key factor in the industry.
  • This concern has been illustrated by the surge of data-privacy focused companies, such as Super Awesome.

5G

The Trend
Companies at the forefront of the trend
Drivers
Challenges

VR AND AR

The Trend
  • The Global Entertainment and Media outlook stated that VR content revenue would increase to $5 billion in 2020, making it a huge trend in the media and entertainment industry.
  • Deborah Bothun, PwC’s Global Entertainment & Media Leader, quote “The next era of differentiation in entertainment and media is being defined and propelled by the consumers’ increased demand for live, immersive, shareable experiences. Consumers want to get closer, more engaged, and better connected with the stories they love both in the physical and digital worlds.”
Companies at the forefront of the trend
Drivers
Challenges
  • VR so far has failed to captivate consumers to the extent that it was initially predicted at its launch. (S1)
  • Portability was an issue in the previous generations, but stand-alone headsets are looking to fix this challenge.

Research Strategy

To provide a detailed and accurate portrayal of trends for the Global Entertainment Industry, we leveraged information from sources such as PwC, Deloitte, Intel, Forbes, and others.
Our starting point for the research was the PwC Global Entertainment report that identifies the showcased trends as some of the most relevant today. The outlook portion of the report identified some macro-trends in the Global Entertainment landscape, such as an increase in mobile data consumption boosting big gains in the industry. Therefore, we selected the 5G trend (also identified by Intel and news outlets as an important trend) as one to watch, especially considering the importance it will have in emerging markets. To further confirm this trend, we looked into what other outlets were saying, and found a pervasive and complete Intel report about the issue (that was included in the research).

The personalization and digital trend were considered by PwC as the most relevant trend in the business today, especially because it affects all the other patterns and every sector of the entertainment industry. According to PwC, personalization is the central theme of the growing world of media, and companies are looking for a way to master this. PwC determined it to be a trend because they leveraged data from 53 territories and several industry experts.

For VR and AR, it was also mentioned by PwC and by Intel as a key trend. We added to their already extensive reports from other sites, such as Forbes. We discovered that VR is getting a second wave after failing to meet expectations with previous generations. Key players, such as Oculus are now launching new stand-alone models that are expected to become the norm in the future. 5G should also significantly contribute to this trend, as pointed out by Intel.

We choose these trends because they have an impact over different types of media, therefore, were considered to be more relevant to the Global Industry as a whole.
Part
03
of eight
Part
03

US Movie Industry Trends

There are several trends affecting the United Stated movie industry. By far, the most popular trend is streaming, followed in no particular order by gender parity, diversity, genres, offerings of physical theaters, and technology.

STREAMING

  • Major players in the streaming business are increasing. They are increasing their reach and budgets. We will no doubt see new players in 2019. The format also provides an easier platform for smaller budget movies that are proving popular. This year streaming services are expected to overtake the traditional theater setting.
  • The number of streaming households has grown from 12 million in 2009 to over 71 million in 2017. With a CAGR of 25%, over 69% of all households have streaming services in 2019.
  • Netflix has dominated the streaming market. They have increased the number of films produced directly for their platform and heavily investing in this avenue. In 2017 alone, they invested over 6 billion dollars into making series and features and their revenue grew by 36% in 2017. Netflix had over 700 series in production in 2018. They have stated they are "choosing to be about the future of cinema." Many of their big releases that have correlated with box office releases have cut into the ticket sales of the box office release, causing concern. Netflix will account for one in every three online subscriptions with the next few years, with a market share of over 50%.
  • Apple has 1.3 billion active devices in its network and has planned a streaming service for this year. They are predicted to be a major player in the industry.
  • Amazon is slowly catching up with Netflix as a major player with its original movies and series.
  • Disney is also entering the streaming market in 2019 along with Facebook.

GENDER PARITY & DIVERSITY

  • Gender parity and more diversity in movies and the industry is a frequent topic for industry professionals and viewers alike.
  • The strict gender roles of men and women are changing with movies such as 'Love Simon' and 'Bohemian Rhapsody', giving movies more diversity.
  • Movies that have been traditionally all-male or all white are experiencing change. We are seeing women cast in men's roles along with casts that were once seen as all white now becoming more diverse.
  • Black Panther is notable, as the cast is all African American, and was wildly successful
  • We are seeing women organizing to pressure decision makers, and audiences coming together through online mediums to voice their unhappiness against racism and sexism in hiring and casting. Due to the backlash, some studio executives are vowing to hire more women and minorities for key roles.
  • We are seeing more women producing movies. In 2019, movies are expected from Reed Morano, Elizabeth Banks, and Anna Boden as directed amongst others.
  • TRENDING GENRES

    • Musical themed movies are increasing in numbers are popularity. Some examples are'The Greatest Showman', 'Marry Poppins Return's, 'Mamma Mia Here We Go Again', 'A Star is Born', 'Bohemian Rhapsody', 'Rocket Man', and 'Yesterday'. In 2019, an adaption of 'Cats' is expected to be released.
    • Franchises are trending and popular with viewers. Marvel's Avengers Endgame hit a record with box office receipts. In 2019 we will see 'Captain Marvel', 'Shazam!', 'Men In Black' International', 'Toy Story 4', 'The Lion King', 'Spider Man', and 'Star Wars' amongst others. Seven out of the ten top grossing movies in 2018 fell into this or the blockbuster category.
    • Blockbuster superhero movies always seem to trend. 'The Black Panther', 'Marvel's Avengers', and 'Superman' have all done well.
    • Social commentary has made its way into movies. We are seeing an increasing number of movies about social issues, diversity acceptance, and political issues. 'Moonlight', '13th', and 'Get Out' have all received awards and praise.
    • Real-Life movies are also on the upswing. In 1996, 7% of movies were real-life based, today it is 27%. The low budget aspect of these movies makes them a popular choice.
    • Christian themed movies have also been a popular, low-budget option for movie producers. 'God's Not Dead', 'War Room', 'Courageous', and 'Heaven Is For Real' all had box office to budget ratios ranging from 844%-3132%.

    THEATERS

    • Big theaters are buying up smaller theaters to become gigantic corporations. It is expected for this trend to continue.
    • Movie ticket subscription options are becoming quite popular for movie goers. Recently we have seen MoviePass, AMC's A-list, Sinemia, and Cinemark Movie Club. In 2019, it is speculated that Tegal and Alamo Drafthouse will join the competition. Theaters are seeing positive results from this service.
    • Reserved seating as an option in theaters is on the rise. A movie goer can reserve their seat in advance, skip the line, and go straight to the movie.
    • Food and Beverage choices are also experiencing a big change and becoming part of the 'experience'. Popcorn and soda have evolved into a vast selection of appetizers, finger foods, and alcoholic beverages.
    • With all the competition from streaming services, theater revenues are still expected to grow at a rate of 3.6% yearly over the next five years, reaching $18.9 billion in the United States, despite declining attendance rates.

    TECHNOLOGY KEEPS EVOLVING

    • Augmented Reality and Virtual Reality have seen investments in the last two years. They are by no means a big trend, but one to watch.
    • Interactivity has proven popular with Netflix's Bandersnatch. Not only was it a success with viewers, but it is touted by developers for its advantages, including being difficult to pirate, engaging, and the ability to gain marketing information.
    • Television can now give the viewer a better picture than the movie screen. With most screens in the US being 2K, the UHD television standard is by far superior. This is seen as a disturbing trend for theaters, as they will need to evolve to keep up. This, coupled with streaming services, makes television a very strong competitor to theater screens.

    Research Strategy

    To obtain trends for the movie industry in the US, we first started with market research from Ibis World, and Deloitte. We also noted trends from respected movie and industry websites such as Screen Daily, Business Insider, the Los Angeles Film School, ASC Magazine, and Audio Socket. To make sure we had located all significant trends we also looked at popular bloggers in the industry to see what they were deeming a trend.

    To be included as a trend we applied the following criteria: they were mentioned multiple times in our research and they have persisted over time.

    It is of note that topics such as streaming, gender, diversity, genres, and technology are not only trends in the United States, but global. During our research, little separation of the two was made except in the case of the US industry forecasts and market shares.
    Part
    04
    of eight
    Part
    04

    Global Movie Industry Trends

    Four trends in the global movie and film industry include increased interest and market for streaming platforms, excessive mainstream content, diversity, and TV and series cinema.

    STREAMING PLATFORMS

    • With streaming platforms like Netflix, and Amazon, dominating the market and producing original content, traditional filmmakers have to try that much harder to create engaging content that will draw in crowds to the theaters.
    • In turn, this trend has also opened the way for what used to be local content to become global. Because these platforms have popularized not only shows like Sherlock and The Crown, but movies as well.
    • In 2017, the global box office met a record low, however, Netflix increased their revenue by 36% in the same year which was a record high.
    • The streaming industry has attracted the interest of other companies that have geared their business towards streaming rather than cinema including Facebook and Apple.

    MAINSTREAM CONTENT

    • The trend of creating repetitive content does not seem to be slowing down, though the impact on the global box office is not clear after record-breaking movies released by Marvel with Black Panther and Endgame.
    • In recent years, studios have continued producing "mainstream" content like superhero movies produced with the same general story arc format or live action recreations.
    • The trend is likely to continue as the large studios continue to acquire smaller studios. This is because original content is more likely to come from small studios that are not after breaking box office records than studios like Disney.
    • This trend is expected to continue due to increased pressure on the global market by Hollywood deals and technology platforms like Amazon and Netflix.

    DIVERSITY

    • A fast growing trend in the global market is more diversity in terms of sexism and racism.
    • Gender equality has continued to be a problem in the film industry in regard to production cast as well as casting processes for female actors.
    • Recent years have brought several "firsts" for African American actors and production cast as well as women in production. These included Ava DuVernay being the first African American woman to direct a movie with a budget over $100 million and Rachel Morrison being not only the first woman to shoot cinematography for a huge action movie but also be nominated for an Oscar for cinematography in a different movie.
    • The industry is not expected to meet full gender parity in the next 5 years, however, advancements are expected to continue.

    TV AND SERIES

    • There has been a growing culture for series and TV services over the past few years with joint ventures, video on demand (VOD) services, and streaming cinema advancements.
    • The United States and European countries hold the market for series content competing for audience attention rather than box office sales.
    • Streaming and TV have begun joint ventures through VOD services, Live TV streaming, and other partnerships with companies like YouTube and Hulu.
    • Technological advancements have allowed series to become just as technically interesting as movies through high quality cinematography.
    • Binge watching culture has increased interest in series cinema though advanced character development and longer stories.

    RESEARCH STRATEGY

    In order to determine current and future trends in the global movie and film industry, we began our search by scouring recent news publications and industry reports from reputable sources such as Screen Daily and Gate Films. Through this search, we were able to determine current trends by cross-referencing our findings across several resources.
    Part
    05
    of eight
    Part
    05

    US Movie Theaters

    Movie theaters in the US have been in a state of change over the last several years. Successful theaters have assessed where they can be the most successful and have seen the benefits. Streaming services have hurt the movie theater market, but some believe the change is negligible. Movies that take gender and diversity into account are the revenue leaders. Couple that with a good action-adventure movie and you have the recipe to fill the movie theater.

    MOVIE THEATERS

    DELUXE FOOD, BEVERAGE & COMFORT OPTIONS

    • Movie theaters that are successful have managed to change with the time and provide the movie goer with perks and comforts they desire.
    • One area not to be ignored is concessions. They make up a large part of movie theater revenue, up to 85 cents out of every dollar spent on food and beverage is profit. In 2018, AMC hit the $1 billion dollar mark for revenue associated with food and beverage. Theaters that are managing to stay ahead of the curve are making changes in this area to make up for shortages in the box office.
    • It is not out of the ordinary to see full service restaurants, drinks, and comfortable recliners in a movie theater. It is one way theaters are attempting to fill the seats and make more money with the upcharge associated with these premium services.
    • Some theaters are even adding virtual reality and children friendly areas to lure people out of their houses.
    • Reclining seats at AMC are credited for giving the company a 76% boost in attendance figures, even though they lost 62% of their seats.
    • Movie goers also can choose their seats before they even go the movie, while skipping the line, and being assured of the seat they desire. This not only benefits the patron, but the theater as well because they get valuable marketing information.
    • AMC will also be offering the ability to order food via a mobile app so that it is ready when you arrive. These perks are apparently catching on. During the premier of 'Avenger's End Game', the company doubled their previous record for food and beverage mobile orders. They set a new first quarter record in 2019, with a capture of $5.23 per patron. This is not your ordinary popcorn and soda choices. Food has been upgraded to gourmet status with fully functioning kitchens and all the offerings. By Labor Day, AMC hopes to have 400 theaters with an upgraded restaurant that offers gourmet food and beverage options.
    • Regal has focused on more food and alcohol options. In 2017, while their box office revenue feel 2.6%, their food offerings only fell 0.3%.
    • Even though streaming is on the rise, people still say theaters are the best place to have an "experience". You can get swept away by the sounds and color in a way you can't at home, and on a much larger scale. The theater is a more social event, which is something that the human nature desires. Part of this experience is alone time when you are focused on the movie and the person you are there with. You tend to get distracted at home. Theaters that can monopolize on these aspects can only benefit.

    MOVIE SUBSCRIPTION SERVICES

    • Movie subscription services or passes have had mixed results. While independent companies such as MoviePass and Sinemia have virtually collapsed, theater-owned programs are more successful. Most major theaters offer some sort of pass. AMC recently launched Stubs A-List. For a fee, you may see one free movie monthly, along with discounts on guest tickets and concessions. AMC considers this a success since around 45% of the members where not a part of their previous loyalty program, and their spending accounts for 6% of total box office revenue. Since last year they have gained more than 800,000 members, when they only set a goal for 500,000. Cinemark's program had over 560,000 members by the end of 2018, up 26& from third quarter.
    • In a survey from October 2018, only 6% of adults surveyed indicated they might be interested in a monthly plan.
    • One benefit to the movie theater is that more people are going to movies that are considered B-level movies because they can see it for 'free'.
    • People rarely attend movies alone, and it is most likely that not everyone will have a pass, thus theaters see this as another source to raise revenue.

    STREAMING & TECHNOLOGY

    • The effects of streaming on the bottom line of movie theaters is mixed at best depending on how you look at it.
    • Subscription revenue is expected to reach $46 billion in 2019, while box office revenue will top out at $40 million.
    • According to Statista, 54% of respondents state their preferred place to watch a movie is at home, while only 13% state the movie theater is.
    • A study by EY's Quantitative Economics and Statistics group found that people that stream are also more likely to go the movie theater. They believe the two forms of consumption are complementary. In the study it was discovered that people who visited a theater nine or more times in a year consumed more streaming than those who only go to the movie theater one time per year. Teenagers, who stream the most, are also avid movie goers, going on an average of seven times in the test year.
    • Netflix has started putting movies in theaters, but on a very small scale. This could be a potential gain for theaters if it is implemented on a larger scale.
    • On the other end of the spectrum are the numbers when looking at movie theater attendance, which hit a concerning low in 2017. Streaming was attributed as one of the reasons for this decline. Even with the attendance numbers fluctuating, 246 million people attend a movie yearly, and around 35 million go every month.
    • Many cite how much cheaper it is to stream a movie instead of incurring the cost of movie tickets, babysitting, and food.
    • Currently, new releases are supposed to wait 90 days before they are released to be sold or rented. Studios are arguing that this is too long and what to reduce that window. This could affect movie theaters negatively.

    GENDER PARITY/DIVERSITY

    • Of significance lately is the success of female-driven movies like "Star Wars: The Last Jedi," “Beauty and the Beast,” and “Wonder Woman”. They were the top three films of 2017.
    • In a study by the Creative Arts Agency and shift7, they discovered that movies starring women made more money than movies starring men (from 2014-2017).
    • Films that pass the Bechdel test (which evaluates female representation in a film), according to the study, outperform other films that fail the test, indicating movies that are female-driven attract more theater goers and revenue. "Wonder Woman" grossed $821 million worldwide. This makes sense, as women make up 51% of the population.
    • Minorities are the most likely group to attend movie theaters, and they make up 40% of the US population. They are even more likely to go to a movie that reflects their demographic. For example, "Black Panther" grossed $400 million in North America, and $304 million internationally in its first ten days.
    • Of interest is the median global box office revenues for certain films. Films that contain less than 20% minority actors grossed less than $40 million on average, while those with more than 20% grossed over $179 million on average.

    GENRES

    • Certain genres bring in more money, therefore they are better bets when considering how many people will attend the theater. According to Box Office Mojo and Statista, adventures, action, drama, comedy, and horror movies make up top five most successful genres in terms of revenue.
    Part
    06
    of eight
    Part
    06

    Global Movie Theaters

    Streaming platforms, mainstream content, increased diversity and the popularity of TV shows are four global movie industry trends that are impacting the movie theater industry. Personalization, 5G and virtual reality (VR) technology are three global entertainment industry trends that are impacting the theater industry. Out of the seven identified trends, it seems that streaming platforms, personalization and VR technology could have the greatest impact on the business of movie theaters.

    STREAMING PLATFORMS

    • Streaming services like Netflix, Amazon Prime Video and Hulu are shifting consumers' preferences. Consumers increasingly favor watching movies at home, rather than going to the cinema.
    • In response to the decreased demand, movie theaters are increasing prices for movie tickets. However, the total box office keeps dropping, even with the increased prices.
    • Due to the rise of streaming platforms, cinema trips are becoming more of an event for consumers, instead of a regular leisure activity.
    • Movie theaters are focusing more and more on acquiring those movies that "have to be seen on the big screen". These are generally movies with impressive special effects.
    • To combat the rise of streaming services, movie theaters are offering new experiences for consumers. One such experience is the introduction of gaming and augmented reality technology to movie theaters. For example, CineMedia launched the National CineMedia’s ARcade platform that allows visitors to play augmented reality games before showtime.
    • Movie theaters around the world are providing more of a luxury experience to their patrons. This includes high-end seating and restaurant-quality food.
    • Some movie theaters are adopting the subscription model instead of fighting it. Large theater chains offer unlimited movie tickets for subscribers, with prices varying based on location.
    • The rising popularity of ticket subscription services like MoviePass is embraced by some theaters and shunned by others. While some theaters think that the business model behind MoviePass is unsustainable, others welcome the fact that MoviePass is already accounting for nearly 10% of all ticket sales in the US and that the service is especially attractive to Millenials, the demographic most likely to opt for streaming platforms instead of traditional theaters.

    MAINSTREAM CONTENT

    • As previously noted, mainstream content is mostly repetitive in nature, often following the same general story arc format.
    • Movie theaters rely heavily on mainstream content because of the proven and predictable effect it has on ticket sales.
    • Only 7% of screens in movie theaters show non-mainstream content, and that percentage is predicted to decline in the future.
    • Movie theaters need mainstream content to boost ticket sales, while large producers need theaters to promote digital distribution and to be eligible for awards.
    • The box office performance of mainstream content is more dependent on advertising than on reviews from critics. Therefore, both movie theaters and producers favor mainstream content because they have greater control over the advertising for a movie than over the opinions of critics.

    DIVERSITY

    • Generally, increasing gender equality and diversity seen in the global film industry does not have a significant impact on the movie theater industry. However, there is currently a small gap between the percentage of females in the world (51%) and that of women who buy tickets to see movies in theaters (50%).
    • Experts predict that the gap will become increasingly smaller, as more and more female-led films get produced.
    • The number of films with women and people of color in leading roles reached a record in 2018. Out of the top 100 films in 2018, 40 featured a female lead or co-lead.

    TV AND SERIES

    • The growing popularity of series and TV services negatively impacts attendance in movie theaters, because theaters generally do not show series and other content produced for television.
    • Television and the film industry have impacted each other in different ways over the years, but they generally managed to coexist. What is changing in recent years is how consumers choose to access content made for television.
    • Nowadays, series and TV shows are increasingly migrating to streaming services such as Netflix. Therefore, all findings related to streaming platforms are also applicable to TV shows.

    PERSONALIZATION

    • Movie theaters are increasingly using artificial intelligence (AI) to boost attendance and concession sales. Theaters are targeting customers in increasingly personalized ways, from setting personal ticket price points to further automating every aspect of the movie-going experience to make it more pleasing and familiar.
    • Some movie theaters are using machine learning and AI to make food and beverage purchases a part of the mobile ticketing transaction. The end goal is for customers to just pick up their concessions once they arrive at the theater and to be charged for it without having to go through any kind of collection or sales point.
    • Several movie theaters started implementing a recommendation system similar to that of Netflix. The systems recommends movies and soon to be released features to customers by analyzing their movie watching history to determine which movies they would be most interested in seeing.

    5G

    • Even though 5G technology is still in its infancy, it appears that some movie theaters are already embracing it. Recently, Odeon partnered with Norwegian cellular carrier Telia to open the first 5G movie theater in the world.
    • Telia’s 5G network allows for streaming of 4K or higher-quality video at respectable frame rates, while traditional 4G networks struggle with maintaining fluidity while streaming full-HD video.
    • The Odeon Cinema Center in Oslo tested out livestreaming of theatrical films over 5G, but the main purpose of the new technology will be to facilitate the transfer of films to Odeon's servers for repeated playback.
    • 5G technology can positively impact the speed of movie distribution. The technology allows for instantaneous distribution of video content.
    • Besides movies getting to theaters faster, 5G also has implications for the future role of movie theaters. Several industry experts imagine a future where people go to theaters to participate in live concerts or other events broadcast from remote locations.

    VR TECHNOLOGY

    • In an attempt to increase attendance, some movie theaters are embracing virtual reality technology. Because home entertainment systems have put a pressure on ticket sales, theaters are focusing on providing premium experiences that cannot be enjoyed at home.
    • Full-fledged VR cinemas are only beginning to surface, but theater operators seem to think that the technology might be the future of cinema.
    • Theaters vary in the extent of VR implementation. Some theaters are satisfied with showing 3D movies in VR to moviegoers that bring their own VR devices like the Oculus Rift and HTC Vive.
    • Imax tried setting up VR centers in movie theaters where people could play games, have social experiences or be immersed in short stories. However, the company deemed the project a failure due to low user engagement and shut down VR centers within six months of opening them. Experts think that the likely reason for the failure of the project was the fact that the VR centers did not offer anything that people could not already experience at home.
    • Other theaters are opting to provide a fully immersive, cooperative VR experience. For example, Cinemark partnered with VR company Spaces to offer a four-person experience that closely resembles an action movie. The VR experience is based on the story from the Terminator trilogy.
    Part
    07
    of eight
    Part
    07

    US Entertainment, Movie, and Movie Theater Industry Analysis

    Provided is a summary of US Entertainment Industry Trends, US Movie Industry Trends, and US Movie Theaters.

    US ENTERTAINMENT INDUSTRY TRENDS

    • DOMINANCE OF TELEVISION SHOWS AND MOVIES OVER OTHER ENTERTAINMENT FORMS
    • Consumers in the United States are preferring television shows and movies over music, video games, and other entertainment forms. The biggest portion of the hours Americans spent on entertainment in 2018 was spent watching television shows and movies. While 27% of these hours were spent watching television shows and movies, only 19% were spent listening to music, and only 16% were spent playing video games.
    • In 2018, over 50% of consumers in the United States streamed video content through subscription services. Moreover, 22% of viewing hours were accounted for by SVOD providers.
    • CONSUMERS' USE OF MULTIPLE SUBSCRIPTIONS TO CUSTOMIZE THEIR ENTERTAINMENT EXPERIENCE
    • Consumers in the United States are carefully selecting which streaming video, television, gaming, and music services to subscribe to. It is no longer uncommon for consumers to subscribe to multiple entertainment services.
    • This trend of subscribing to multiple services is being driven by the need of consumers to take charge of their entertainment experience and to tailor the entertainment experience to their own preferences.
    • REAGGREGATION OF ENTERTAINMENT SERVICES
    • It should not be overlooked, however, that more and more consumers are finding the entertainment service selection process frustrating. The growth in the number of entertainment services available has made the process more complex. As a result, signs of reaggregation have been observed in the country's entertainment industry.
    • The number of viewers in the United States who feel positive about the increase in the number of options had significantly dropped from 46% in 2017 to 29% in 2018.
    • CONVERGENCE OF TELECOMMUNICATION AND ENTERTAINMENT CONTENT PROVIDERS
    • Content providers and telecommunication providers continue to converge. To illustrate, T-Mobile US, having acquired Layer 3 recently, is looking to offer pay television. AT&T is also incorporating Time Warner assets in its own entertainment offerings.
    • To remain competitive, telecommunication networks are increasingly finding it necessary to own content and monetize it over their mobile and fixed networks.
    • EMERGENCE OF NEW AND IMMERSIVE ENTERTAINMENT MEDIA
    • 5G networks will bring about numerous revenue opportunities for the entertainment industry in the United States. It is expected that revenue opportunities worth $1.3 trillion will open up for the industry in the next decade.
    • The development of new and immersive entertainment media, such as those powered by virtual reality and augmented reality, is being driven by the performance and technical improvements that 5G offers over 4G. Compared to 4G, 5G offers 100-times faster data speeds, 10-times lower latency, and 100-times bigger network capacity.

    US MOVIE INDUSTRY TRENDS

    • STREAMING
    • Major players in the streaming business are increasing. They are increasing their reach and budgets. We will no doubt see new players in 2019. The format also provides an easier platform for smaller budget movies that are proving popular. This year streaming services are expected to overtake the traditional theater setting.
    • Netflix has dominated the streaming market. They have increased the number of films produced directly for their platform and heavily investing in this avenue. In 2017 alone, they invested over 6 billion dollars into making series and features and their revenue grew by 36% in 2017. Netflix had over 700 series in production in 2018. They have stated they are "choosing to be about the future of cinema." Many of their big releases that have correlated with box office releases have cut into the ticket sales of the box office release, causing concern. Netflix will account for one in every three online subscriptions with the next few years, with a market share of over 50%.
    • GENDER PARITY & DIVERSITY
    • Gender parity and more diversity in movies and the industry is a frequent topic for industry professionals and viewers alike.
    • Movies that have been traditionally all-male or all white are experiencing change. We are seeing women cast in men's roles along with casts that were once seen as all white now becoming more diverse.
    • We are seeing women organizing to pressure decision makers, and audiences coming together through online mediums to voice their unhappiness against racism and sexism in hiring and casting. Due to the backlash, some studio executives are vowing to hire more women and minorities for key roles.
    • TRENDING GENRES
    •  Musical themed movies are increasing in numbers are popularity. Some examples are'The Greatest Showman', 'Marry Poppins Return's, 'Mamma Mia Here We Go Again', 'A Star is Born', 'Bohemian Rhapsody', 'Rocket Man', and 'Yesterday'. In 2019, an adaption of 'Cats' is expected to be released.
    • Franchises are trending and popular with viewers. Marvel's Avengers Endgame hit a record with box office receipts. In 2019, we will see 'Captain Marvel', 'Shazam!', 'Men In Black' International', 'Toy Story 4', 'The Lion King', 'Spider Man', and 'Star Wars' amongst others. Seven out of the ten top grossing movies in 2018 fell into this or the blockbuster category.
    •  Blockbuster superhero movies always seem to trend. 'The Black Panther', 'Marvel's Avengers', and 'Superman' have all done well.
    •  Social commentary has made its way into movies. We are seeing an increasing number of movies about social issues, diversity acceptance, and political issues. 'Moonlight', '13th', and 'Get Out' have all received awards and praise.
    • Real-Life movies are also on the upswing. In 1996, 7% of movies were real-life based, today it is 27%. The low budget aspect of these movies makes them a popular choice.
    •  Christian themed movies have also been a popular, low-budget option for movie producers. 'God's Not Dead', 'War Room', 'Courageous', and 'Heaven Is For Real' all had box office to budget ratios ranging from 844%-3132%.
    • THEATERS
    • Big theaters are buying up smaller theaters to become gigantic corporations. It is expected for this trend to continue.
    •  Movie ticket subscription options are becoming quite popular for movie goers. Recently we have seen MoviePass, AMC's A-list, Sinemia, and Cinemark Movie Club. In 2019, it is speculated that Tegal and Alamo Drafthouse will join the competition. Theaters are seeing positive results from this service.
    •  Reserved seating as an option in theaters is on the rise. A movie goer can reserve their seat in advance, skip the line, and go straight to the movie.
    •  Food and Beverage choices are also experiencing a big change and becoming part of the 'experience'. Popcorn and soda have evolved into a vast selection of appetizers, finger foods, and alcoholic beverages.
    • With all the competition from streaming services, theater revenues are still expected to grow at a rate of 3.6% yearly over the next five years, reaching $18.9 billion in the United States, despite declining attendance rates.
    • TECHNOLOGY KEEPS EVOLVING
    • Augmented Reality and Virtual Reality have seen investments in the last two years. They are by no means a big trend, but one to watch.
    • Interactivity has proven popular with Netflix's Bandersnatch. Not only was it a success with viewers, but it is touted by developers for its advantages, including being difficult to pirate, engaging, and the ability to gain marketing information.
    • Television can now give the viewer a better picture than the movie screen. With most screens in the US being 2K, the UHD television standard is by far superior. This is seen as a disturbing trend for theaters, as they will need to evolve to keep up. This, coupled with streaming services, makes television a very strong competitor to theater screens.

    US MOVIE THEATERS- IMPACT FROM TRENDS

    • DELUXE FOOD, BEVERAGE & COMFORT OPTIONS
    • Movie theaters that are successful have managed to change with the time and provide the movie goer with perks and comforts they desire.
    • One area not to be ignored is concessions. They make up a large part of movie theater revenue, up to 85 cents out of every dollar spent on food and beverage is profit. In 2018, AMC hit the $1 billion dollar mark for revenue associated with food and beverage. Theaters that are managing to stay ahead of the curve are making changes in this area to make up for shortages in the box office.
    • Reclining seats at AMC are credited for giving the company a 76% boost in attendance figures, even though they lost 62% of their seats.
    • Movie goers also can choose their seats before they even go the movie, while skipping the line, and being assured of the seat they desire. This not only benefits the patron, but the theater as well because they get valuable marketing information.
    • Even though streaming is on the rise, people still say theaters are the best place to have an "experience". You can get swept away by the sounds and color in a way you can't at home, and on a much larger scale. The theater is a more social event, which is something that the human nature desires. Part of this experience is alone time when you are focused on the movie and the person you are there with. You tend to get distracted at home. Theaters that can monopolize on these aspects can only benefit.
    • MOVIE SUBSCRIPTION SERVICES
    • Movie subscription services or passes have had mixed results. While independent companies such as MoviePass and Sinemia have virtually collapsed, theater-owned programs are more successful. Most major theaters offer some sort of pass. AMC recently launched Stubs A-List. For a fee, you may see one free movie monthly, along with discounts on guest tickets and concessions. AMC considers this a success since around 45% of the members where not a part of their previous loyalty program, and their spending accounts for 6% of total box office revenue. Since last year they have gained more than 800,000 members, when they only set a goal for 500,000. Cinemark's program had over 560,000 members by the end of 2018, up 26& from third quarter.
    • STREAMING & TECHNOLOGY
    • The effects of streaming on the bottom line of movie theaters is mixed at best depending on how you look at it.
    • Subscription revenue is expected to reach $46 billion in 2019, while box office revenue will top out at $40 million.
    • According to Statista, 54% of respondents state their preferred place to watch a movie is at home, while only 13% state the movie theater is.
    • A study by EY's Quantitative Economics and Statistics group found that people that stream are also more likely to go the movie theater. They believe the two forms of consumption are complementary. In the study it was discovered that people who visited a theater nine or more times in a year consumed more streaming than those who only go to the movie theater one time per year. Teenagers, who stream the most, are also avid movie goers, going on an average of seven times in the test year.
    • Currently, new releases are supposed to wait 90 days before they are released to be sold or rented. Studios are arguing that this is too long and what to reduce that window. This could affect movie theaters negatively.
    • GENDER PARITY/DIVERSITY
    • Of significance lately is the success of female-driven movies like "Star Wars: The Last Jedi," “Beauty and the Beast,” and “Wonder Woman”. They were the top three films of 2017.
    • Films that pass the Bechdel test (which evaluates female representation in a film), according to the study, outperform other films that fail the test, indicating movies that are female-driven attract more theater goers and revenue. "Wonder Woman" grossed $821 million worldwide. This makes sense, as women make up 51% of the population.
    • Minorities are the most likely group to attend movie theaters, and they make up 40% of the US population. They are even more likely to go to a movie that reflects their demographic. For example, "Black Panther" grossed $400 million in North America, and $304 million internationally in its first ten days.
    • Of interest is the median global box office revenues for certain films. Films that contain less than 20% minority actors grossed less than $40 million on average, while those with more than 20% grossed over $179 million on average.
    • GENRES
    • Certain genres bring in more money, therefore they are better bets when considering how many people will attend the theater. According to Box Office Mojo and Statista, adventures, action, drama, comedy, and horror movies make up top five most successful genres in terms of revenue.
    Part
    08
    of eight
    Part
    08

    Global Entertainment, Movie, and Movie Theater Industry Analysis

    Increases in the levels of personalization, 5G technology and VR/AR technology are the main trends in the global entertainment industry. The rise of streaming platforms, mainstream content, increasing diversity and the rising popularity of content made for TV are the main trends in the global movie industry.

    GLOBAL ENTERTAINMENT INDUSTRY TRENDS

    PERSONALIZATION

    • Companies in the entertainment industry are relying on artificial intelligence (AI) and big data to anticipate users' needs and personal preferences and to adapt their offerings to best satisfy them. Some companies that are at the forefront of this trend include Disney, Tata Sky, DAZN, Netflix and Amazon.
    • Personalization is key for understanding how and when people consume entertainment, which leads to more efficient advertising, and a better user experience. Additionally, technological advances are enabling consumers to move from passive to active consumption, from linear to on-demand. 
    • This trend is most evident in those markets where broadband penetration is high. People like to select exactly which content they would most like to consume and they prefer doing it at their own pace. For example, consumers in the developed world are rejecting subscriptions to cable and satellite companies that sell predetermined bundles of channels, in favor of creating their own ad hoc bundles composed of several OTT services.
    • Personalization can also be based on the consumer's location, and this is especially true for personalized pricing. For example, Netflix and Amazon are experimenting with different price models for individual markets. Telecommunication operating in developing markets like the Southeast Asia bundle phone, data and OTT services in a single package that is offered at an affordable price.
    • Companies in the entertainment industry have noticed that not all consumers are willing to pay for unlimited access to products, which is why they are shifting to a payment tier model to attract a wider set of customers. For example, MoviePass, the theater ticket subscription service recently switched from a single price model to a subscription system offering three different tiers of benefits.
    • One of the key challenges for increased personalization is the fact that consumers are still not completely satisfied with content recommendations, with only 21% of consumers believing that their OTT service understands what they want and 30% saying that their streaming service recommended the same content over and over again.
    • The biggest challenge, however, is the increasingly complex regulatory environment around online data privacy. Consumers and politicians are growing increasingly concerned about the continuous collection of personal data, as evidenced by the surge of data-privacy focused companies like Super Awesome.
    • Movie theaters are trying to use personalization to boost attendance and concession sales.
    • Some theaters are tailoring the ticket price to each individual customer, while others are using AI to connect food and beverage purchases to the process of buying a ticket, in order to create a seamless experience for the customer and to eliminate sales points inside the theater.
    • Several movie theaters are implementing an AI recommendation system that analyzes the movie watching history of customers to recommend films that they are most likely to enjoy.

    5G

    • 5G is expected to improve revenues and products in mobile media, mobile advertising, home broadband and TV, immersive media, and new media. This is because there is a growing need for consuming more Internet data. It is estimated that the amount of data consumed globally is growing by more than 25% annually.
    • Besides increasing the amount of media use, 5G has the potential to create significant changes, such as mobile edge computing (MEC) and Network slicing. It will increase data consumption in the developing markets, creating a new audience for entertainment content.
    • The market for 5G is expected to reach $420 billion in the next ten years. Some companies that are at the forefront of this trend include AT&T, Intel, Microsoft, NVIDIA, Tesla, and Google.
    • The 5G technology enables a range of new entertainment use cases, such as VR and AR applications, new ways of gaming, immersive media, in-car entertainment and localized content delivery for in-venue media.
    • However, 5G technology is still in its infancy and it is not ready to meet the demand. To have a 5G network, certain special antennas are needed, which are not yet widely available.
    • Additionally, there are some concerns about the health risks of the technology. Some critics pointed out that there aren’t enough studies on the subject.
    • In Norway, the first 5G movie theater in the world was opened in partnership between the Odeon Cinema Center and the Norwegian cellular carrier Telia.
    • The theater tested out livestreaming theatrical films over 5G, but the main purpose of the new technology will be to facilitate the transfer of films to Odeon's servers for repeated playback.
    • With 5G technology the distribution of video content can be nearly instantaneous. This opens up new use cases for movie theaters, which can now be used to participate in live concerts or other events broadcast from remote locations.

    VR/AR TECHNOLOGY

    • VR entertainment content is expected to reach a market size of $5 billion by 2020.  Khronos Group, Google, Oculus, Vive, and Valve are some companies that are positioned to take advantage of this trend.
    • The number of investments in VR/AR technology is increasing every year and industry cooperation initiatives are emerging every day.
    • News outlets are starting to adopt the VR journalism trend, hoping to put a sense of participation in the minds of viewers.
    • The new generation of VR headsets brings a lot of improvements to the technology, with features such as eyeball-tracking and increased field-of-view.
    • However, VR has so far failed to capture the attention of consumers, at least to the extent that was initially predicted.
    • Portability is still a challenge for massive VR adoption, but the rise of portable dedicated or stand-alone devices has the potential to solve this issue.
    • VR movie theaters are opening across the world, and theater operators believe that VR is the future of cinema.
    • Theaters vary in the kind of VR experience offered to customers. While some theaters are showing 3D movies in VR to people that bring their own VR headsets, other theaters are trying to create a fully immersive, cooperative VR experience.

    GLOBAL MOVIE INDUSTRY TRENDS

    STREAMING PLATFORMS

    • Major streaming platforms like Netflix and Amazon Prime Video are taking away market share from movie theaters by creating original content.
    • Streaming services allow local content to reach a global audience. This made shows like Sherlock and The Crown hugely popular across the world.
    • In 2017, the global box office hit a record low, while Netflix achieved record high revenue in the same year. Cinema trips are becoming more of an event for consumers, instead of a regular leisure activity.
    • Other technology companies like Facebook and Apple are focusing their business on streamed content as well.
    • Consumers tastes are shifting and they increasingly favor watching movies at home, rather than going to the cinema. In response to the decreased demand, theaters are increasing ticket prices, but the total box office keeps dropping even with increased prices.
    • Movie theaters are focusing more and more on acquiring those movies that "have to be seen on the big screen". These are generally movies with impressive special effects.
    • Some theaters are trying to combat the rise of streaming platforms by offering premium experiences to consumers. This includes high-end seating and restaurant-quality food.
    • Additionally, movie theaters are starting to adopt the subscription model. Several theaters now offer unlimited access for the price of a monthly subscription, and the ticket subscription service MoviePass is growing in popularity.

    MAINSTREAM CONTENT

    • There is a trend of creating repetitive content in movies because that content has been proven to attract audience attention.
    • Content like superhero movies produced with the same general story arc format or live action recreations is the content that is most produced by film studios, and the trend shows no signs of slowing down.
    • An additional driver of this trend is that large studios are buying out small studios, and large studios are much more likely to create mainstream content.
    • Currently, only 7% of movie theaters show non-mainstream content, and that figure is predicted to decline in the future.
    • Movie theaters need mainstream content to boost ticket sales, while large producers need theaters to promote digital distribution and to be eligible for awards.
    • Showing mainstream content provides more control to movie theaters and producers because its audience is much more influenced by advertising than by industry critics' reviews.

    DIVERSITY

    • Greater gender equality and race diversity can generally be seen in contemporary film.
    • Recent years have brought several "firsts" for African American actors and production cast as well as women in production. These included Ava DuVernay being the first African American woman to direct a movie with a budget over $100 million and Rachel Morrison being not only the first woman to shoot cinematography for a huge action movie but also be nominated for an Oscar for cinematography in a different movie.
    • Full gender parity is not expected to be reached in the next 5 years, but advancements are expected to continue.
    • Generally, increasing gender equality and diversity seen in the global film industry does not have a significant impact on the movie theater industry. However, there is currently a small gap between the percentage of females in the world (51%) and that of women who buy tickets to see movies in theaters (50%).
    • The number of films with women and people of color in leading roles reached a record in 2018. Out of the top 100 films in 2018, 40 featured a female lead or co-lead. Experts predict that the gap will continue to shorten in the coming years.

    TV AND SERIES

    • Joint ventures, video on demand (VOD) services, and streaming cinema advancements led to the increased popularity of series and TV services.
    • TV producers have started joint ventures through VOD services, Live TV streaming, and other partnerships with companies like YouTube and Hulu.
    • TV shows are becoming just as compelling and engaging as movies, due to technological advances in high quality cinematography.
    • The culture of binge watching has increased the appeal of series. Consumers favors series because of the advanced character development and longer stories.
    • This growing popularity of TV shows negatively impacts movie theater attendance.
    • In the past, TV and movie theaters managed to coexist because of the different ways of delivering content. Nowadays, series and TV shows are increasingly migrating to streaming services such as Netflix. This is fueling the movie theaters' loss of market share to streaming services.

    RESEARCH STRATEGY

    The trends have been identified by cross-referencing developments that are generally discussed in entertainment media. We have leveraged research from major consulting companies like PwC and Deloitte and media outlets like Forbes to identify the most discussed developments and we have made sure to include only those developments that were mentioned multiple times in different sources.
    Sources
    Sources

    From Part 03
    Quotes
    • "The social movements of women’s empowerment have also tackled an important part of the imbalance issues, that is how much toxic masculinity still rules the world. Part of the conversation should be -and to some extent, has been- the depiction of men in film and television. Will & Grace, a landmark show when it first came out, is enjoying a revival. Beyond the depictions of men as savers of the world (looking at you, Ethan Hunt), let us not forget that 2018 has also been the year of Love, Simon, the first studio release with a clearly identified gay leading man going through his coming out. This was to be followed by the controversial Bohemian Rhapsody later in the year, also brought into this world by 20th Century Fox. (For an analysis of the reasons why the Freddie Mercury biopic may be doing more harm than good, read this piece.) At any rate, the door has been opened for more complex, diverse portrayals of men, beyond the usual archetypes. Deconstructing the standard that both men and women are measured against can only do good, and a more diverse representation of it can only accelerate the debates."
    Quotes
    • "Media companies have also been reevaluating their content strategies, increasingly investing in areas such as augmented and virtual reality (AR/VR). The past two years have seen a series of investments as large and small players alike rush into the AR/VR space.5 “Ask the Expert” services and job training represent two big opportunity areas for AR and VR in 2019."
    Quotes
    • "The current trend for popular musical extravaganzas on the big screen shows no sign of abating. Last year, toe-tappers The Greatest Showman, Mary Poppins Returns, and Mamma Mia! Here We Go Again proved to be box office gold, while Bohemian Rhapsody became the highest-grossing music biopic of all time, and A Star is Born made Lady Gaga an unqualified movie star. Unsurprisingly, there are a trio of films hoping to repeat their success in 2019: Elton John biopic (or “fantasy musical,” as star Taron Egerton prefers to call it) Rocketman; Last Christmas, a Brit rom-com from Paul Feig (Bridesmaids, Ghostbusters) and starring Emilia Clarke and Henry Golding, and featuring the songs of George Michael and Wham!; and a big-budget adaptation of Andrew Lloyd Webber’s Cats, featuring an A-list line-up of singing and acting talent (Jennifer Hudson, Taylor Swift, Ian McKellen, Idris Elba and Judi Dench, to name a few.) "
    • "More Women Behind the Camera While the balance is still well off, 2019 does boast some pretty exciting movies from female directors. By no means exhaustive, a few of the titles we’re well up for include Reed Morano’s revenge mystery with Blake Lively, The Rhythm Section, Elizabeth Banks’ Charlie’s Angels reboot, and of course Captain Marvel, the first MCU movie to have a female co-director with Anna Boden. "
    • "Marvel Studios will be closing Phase Three of their ambitious cinematic universe with Avengers: Endgame--the much-anticipated Infinity War follow-up that concludes our heroes’ epic struggle against the snap-happy Thanos. And with several of the super-team’s original line-up reportedly coming to the end of their contracts (Chris Evans, Chris Hemsworth, Robert Downey Jr.), it looks like we could be saying a final farewell to some of our favorite characters. Sad times. Still, at least we have Phase Four-starter Spider-Man: Far From Home to (hopefully) usher in a bright new dawn for the MCU"
    Quotes
    • "Interactivity could be the next big thing. Netflix paved the way in 2018 with the Bandersnatch episode of Black Mirror in which the viewer can choose between different scenario options. This kind of format, without being revolutionary, has several advantages: • it is more difficult to pirate because it requires a specific technology within the video player • it is more engaging than other content, since it requires the active participation of the viewer • Finally, it makes it possible to extract very relevant marketing information, whether it is data on behaviour with regard to brands or behaviour with regard to dramatic structures. It would not be surprising if others streaming services took over this structure, including for brand content. "
    • "The battle between the future “flix” giants of online video will not only focus on content, it will also definitely focus on distribution. Those who will benefit from the most extensive distribution will be those who are more likely to win the battle for streaming services."
    • "Apple, for example, could take advantage of its 1,3 billion network of active devices (iphones, ipads, Apple TV etc.) to offer exclusive content on a very large scale via its future streaming service planned for 2019."
    • "Another issue that is burning everyone’s lips is the business models for streaming services. Netflix has democratized the SVOD model but is it the only possible model for premium content? The AVOD model, even if it has been proven for many years on services such as Hulu and Roku, has recently seen many initiatives developed: XumiTV, TubiTV, Pluto TV… In an increasingly globalized market, with large audiences, and tools to target consumers very precisely this model certainly has a future. Especially since some technologies, such as blockchain (see below) will add transparency, making the model even more virtuous"
    • "Finally, other, slightly more complex models, such as “bundle” or “exclusive content”, could be adopted by some streaming services. Like Amazon Prime Video, the idea is to integrate the video service as an additional value-added service. Or as a bait to sell more products or subscriptions. Apple, as it has been doing for several years, could offer its future video service only to owners of apple brand devices. AT&T could offer a subscription to its next OTT WarnerMedia service to its Internet and Mobile subscribers. And why not imagining that Disney, after the acquisition of Fox, could offer content bundles with press titles and other video streaming services?"
    Quotes
    • "Cinemas have an important place in the “experience economy” but “cinemas cannot be responsible for the first run of all releases. Different paths through the theatrical window would be a logical solution. Some kind of compromise from exhibitors on holdbacks is expected in the next few years.”"
    • "Patrick von Sychowski, editor of Celluloid Junkie, told the report: “A worrying trend is this major consolidation drive, with big cinema chains buying up medium cinema chains and becoming global, gigantic cinema corporations. In a way they have to be that, because of [the pressure from the] consolidated Hollywood studios, and technology companies like Netflix and Apple. "
    • "Gender parity Time’s Up is very welcome movement, and change is indeed coming, but “the abysmal starting situation means that reaching full gender parity will take rather more than five years,” Nostradamus predicts "
    • "The report suggests, “All over the world, women in the film industry are organising themselves to put pressure on decision makers. Audience groups are advocating online against sexism and racism in hiring decisions, casting and representation. It would be a shame if traditional film industry decision-makers — those who do not trust women to produce, write or direct — decided to gamble the box office on maintaining the status quo.”"
    Quotes
    • "After a year of big-budget duds and attendance hitting a 25-year low in 2017, seeing theaters full this entire year was a big morale boost for the industry. In fact, the domestic box office set a box office record with a $11.38 billion take (and still climbing). "
    • "Expect more movie ticket subscription options One of the big stories at the movies in 2018 was the rise (and colossal fall) of MoviePass. But what the company showed the industry is that theatergoers love a subscription model as much as they love one for their favorite streaming service. This opened the door for AMC Theaters to launch its A-List plan, which has also become extremely popular, with subscriptions exceeding the chain's projections. And there are other options like Sinemia and Cinemark's Movie Club. "
    • "More options are likely coming. Regal has been quiet when it comes to a movie subscription plan, but industry sources tell Business Insider they would be shocked if the company didn't unveil one in 2019. And Alamo Drafthouse could launch its subscription plan as well. Its Alamo Season Pass is currently in a beta version."
    • "Avengers: Endgame." Disney The North American box office has already passed 2016's record $11.37 billion record, and the worldwide box office looks like it will also hit an all-time record, but it could be just the beginning. On paper, there are arguably more anticipated releases in 2019 than this year, including "Captain Marvel," "Avengers: Endgame," Tim Burton's Disney movie "Dumbo," the DC Comics movie "Shazam!," Jordan Peele's "Us" (the follow up to "Get Out"), "Aladdin," "Dark Phoenix," "Men in Black International," "Toy Story 4," "The Lion King," "Spider-Man: Far From Home," and "Star Wars: Episode IX," So, the 2019 box office could surpass this year's. "
    • "We know it's teaming with independent producer/distributor A24 ("Moonlight") on a multi-year deal to release a slate of films. But you would think that's just one branch of Apple's massive plan for original content. Is Apple going to flex its muscles and try to produce blockbusters? Will it do theatrical runs? If so, will it respect the window like Amazon or go the way of Netflix? I'd like to think we'll get a clearer picture in 2019, but whatever these answers are, it's going to be another major change in a business that has had a lot recently."
    Quotes
    • "The movie industry roared back to life last year after a weak 2017, powered by the box office success of Black Panther and other blockbuster superhero films"
    • "Rapidly growing streaming services such as Netflix and Amazon are creating and distributing their own movies — and winning acclaim for films such as the Netflix drama Roma, nominated this year for 10 Oscars. Under pressure to compete, Disney and WarnerMedia, the parent of Warner Bros., are preparing to launch their own streaming services to reach audiences more inclined to watch films at home or on their devices than in theaters."
    • "Meanwhile, as Hollywood reels from allegations of widespread sexual harassment and gender-based pay inequity, some studio executives are pledging to hire more women and minorities for key roles in front of and behind the camera."
    Quotes
    • "Up until the last two years or so, you – and many in the film industry – might have thought that CGI would be replacing practical effects in the special effects arena. Little did anyone imagine that practical effects would make a major comeback, especially in some of today’s major blockbuster motion pictures. Some of the most recent titles using practical effects include Star Wars: The Force Awakens, and Mad Max: Fury Road, and perhaps surprisingly much of the 2010 film Inception."
    • "If you’re someone who utilizes streaming services like Netflix, Amazon, and YouTube, you may have noticed that these outlets are seeing a drastic increase in the films being produced explicitly – or initially – on these platforms. Not only are there “Netflix Original” and “Amazon Original” TV shows, there have been feature films featured on the websites as well. Most recently, lower-budget films like What Happened Miss Simone and the documentary 13th in addition to popular TV shows like Orange is the New Black and House of Cards."
    • "The social-political arena has seen an increased presence across several media, including satirical comedy shows, traditional news outlets, social media and more, and the film industry is no exception. Recently, social commentary has made a breakthrough into the traditional film industry, leading to blockbuster hits and well-known, award winning films that focus on relevant social issues, including diversity acceptance and celebration, highlighting political unrest, and fostering unity across populations. "
    • "• Moonlight, which addresses LGBTQ and race issues. The film was awarded with three Oscars, a Golden Globe, a Screen Actors Guild Award, and several other awards. • Get Out, a commentary on race relations • 13th, the Netflix Original documentary focusing on the “intersection of race, justice and mass incarceration in the United States.” • Loving, named one of the “best films of 2016” and nominated for several awards, including an Oscar, Golden Globe, and more. The film explores the story of an interracial married couple who is arrested and forges a subsequent legal battle, leading to a historical U.S. Supreme Court decision "
    • "More and more, perhaps because of the increase in social commentary in the film industry, we see an increase in diversity in film. From casting female leads in typically male roles to incorporating more racial diversity into films that may have included a primarily white cast in previous years, the film industry is becoming more diverse all the time, allowing for greater flexibility and creativity in how films are made. Such diversity can be seen in films like Moonlight, as evidenced by the main character, a young, homosexual Black man; the 2016 Ghostbusters remake, which boasted a cast full of women; and the 2018 film-to-be Ocean’s Eight, another film that will feature an entirely female leading cast in a franchise that was historically dominated by male actors."
    Quotes
    • ". An increasing number of movies are being based on real-life events. Under 7% of movies in US cinemas in 1996 were based on real-life events. Twenty years later, that figure stood at 27%. Despite this nearly fourfold rise in real-life inspired film production, box office revenues did not keep pace."
    • "The reason for this disparity is that the large increase in real life movies has mostly been in lower-budget filmmaking, with only 2.9% of movies budgeted over $100m being based on actual events (including Deepwater Horizon, Alexander, Pearl Harbor, The Perfect Storm, The Aviator, Ali and American Gangster)."
    • "Some of the most profitable films of the past decade have been movies made by and for American Christians. The Passion of the Christ led the way, grossing $612 million on a $30 million budget (2,040% box office to budget ratio) but it is far from alone. There have been a string of successful Christian films which most mainstream film fans will never have heard of. These include God’s Not Dead (3,132% box office to budget ratio), War Room (2,260%), Courageous (1,381%) and Heaven Is for Real (844%). It’s worth noting that these films will also have performed very well on Home Video and VOD, adding to their total profitability. "
    Quotes
    • "TREND: There will be a battle of media titans for the exploding streaming video market. The shift from television, cable and DVDs to the internet is changing cinema both inside and outside the theaters. Netflix has led the way, dominating the internet streaming business by investing heavily in the making of series and features (through production and acquisition). Some noteworthy figures: "
    • "-- Netflix invested 6 billion dollars in video content in 2017 -- Netflix reached 117 million subscribers, split about 50/50 between the US and the rest of the world. -- Netflix grew its revenues by a phenomenal 36% in 2017, and there is every indication for continued growth. -- Netflix worldwide revenues of 11 billion in 2017 is about the same as the total US Box Office. -- Netflix has announced that it plans to spend 8 billion in 2018, on some 700 series and 80 feature films. "
    • "Amazon is the elephant in the streaming room, and is catching up to Netflix, investing 4.5 billion in series and movies in 2017. Amazon CEO Jeff Bezos sees quality movies as helping to build his brand, and has remarked: "we get to monetize that content in a very unusual way, when we win a Golden Globe, it helps us sell more shoes”. Note that Netflix and Amazon are also buying quality content by some of the most innovative filmmakers around: the Coen brothers, Alfonso Cuaron, Ildikó Enyedi, Todd Haynes, Bong Joon-Ho and Dee Rees, to name some recent directors. "
    • "Disney is set to launch its own streaming service in 2019. There are also two giant newcomers who may join the content business, Apple (888 B) and Facebook (511 B). There are a lot of fish in the "video content" tank, and some big fish will probably eat smaller ones. Indeed, Apple is rumored to have considered buying Netflix. "
    • "TVs vs Theaters The situation of movie theaters today evokes the 1950s, when the studios introduced anamorphic lenses to offer wider spectacles than what people could see on their televisions. The difference is that today, the televisions are technically better than the theaters: -- The UHD television standard is equivalent to 4K resolution in theaters, but most screens are 2K at present. -- Televisions are presently capable of higher frame rates than movie theaters. -- The television 2020 standard color space is more extensive than the current theatrical DCI-P3 standard. -- Televisions have higher dynamic range capability than theaters, and it's a lot easier to get true black values in a darkened living room than it is in a movie theater. "
    • "TREND: North American attendance has been going down since 2002 and is at a 25-year low. Cinema in theaters is currently a $40 billion business. Last year, the top 20 features accounted for 41% of the global box office — $16 billion. Worldwide theatrical box office revenue continued to grow moderately by 3% in 2017, but much of that growth is due to ticket price increases and the growing Chinese market. "
    • "Hollywood studios, led by Star Wars: The Last Jedi. In the top 20, there are six comic-book superhero movies, led by the latest Spider-Man, and five animated films, led by Beauty and the Beast. "
    • "The industry is changing and will enable more women and people of color in positions of power. One of the most important cultural trends is the growing diversity of the characters on screen. Wonder Woman is the first female superhero protagonist, and Gal Gadot's charisma and strength sends a great message to young audiences. Similarly, the wonderful cast of African-Americans in Ryan Coogler's Black Panther marks a milestone in the genre, sending a clear message to the studio heads, as it raced to a billion-dollar gross in record time "
    • "It's also heartening to see that an African-American, Bradford Young, ASC, shot the upcoming Solo: A Star Wars Story. And it's just as important to see one female director, Patty Jenkins, break into the box office top 20. Ava DuVernay is the first African-American woman to direct a movie with a 100-million plus budget, A Wrinkle in Time. And it's wonderful to see Greta Gerwig get an Oscar nomination for directing Lady Bird."
    Quotes
    • "Streaming services like Netflix and Amazon are leading the way in both the creation of original works and the distribution of smaller-budget, short-form and documentary films, according to a recent blog post by the Los Angeles Film School."
    • "Unsurprisingly, these three categories of film are seeing a corresponding rise in popularity, according to Stephen Follows."
    • "Netflix Production Budgets As Benjamin B notes in American Cinematographer, Netflix spent $6 billion in 2017 on original film and TV series, and the company plans to expand that budget to $8 billion in 2018. Television is currently outpacing cinemas as the more popular way to watch film, mostly because today’s widely available 4K digital flat screens provide a clearer visual experience than many movie screens do. "
    • "Netflix’s big budget is another big reason: With some 700 series in production for 2018, there are so many more opportunities for showrunners to take chances creatively."
    • "The Role of Crowdfunding Follows also notes that crowdfunding has become a viable source of film funding for many projects. The Veronica Mars film passed the $7 million mark in crowdfunding, and shares the distinction of being one of two crowdfunded projects to raise more than $5 million, according to Fellows’ data. (That other film was Super Troopers 2.) New rules from the U.S. Securities and Exchange Commission (SEC) are likely to expand options for crowdfunding films, as well, according to Mark Litwak at IndieWire. The new rules, based on the 2012 Jumpstart Our Business Startups (JOBS) Act, allow securities to be sold via crowdfunding and set parameters for those sales — allowing crowdfunders not only to contribute to film projects, but actually invest in them. "
    • "Conversational Shifts: Social Commentary, Diversity and Real-Life Events The content of film is also changing to reflect the social milieu in which it is produced. Recent pushes for better representations of human diversity and diverse viewpoints have led to a corresponding increase of films told from the perspectives of women, characters of color and disabled characters, according to Baptiste Charles at Raindance. "
    • "Short-form documentaries are also gaining new attention. Bryn Beausoleil recently covered the multiple panels dedicated to the discussion of short-form documentary trends at SXSW, one of which focused solely on the trend’s intersection with both broadcast and streaming television. Social commentary is on the rise not only in documentaries, but also in other types of films, perhaps reflecting the intense social self-consciousness of the era."
    • "The rise of social commentary in film may have a democratizing feedback-loop effect, researcher Ian Huffer argues in an article in Cultural Trends. When online options make film easier to access, Huffer argues, it builds more connections between audiences and content. These connections both give audiences a richer field of storytelling tools with which to understand their own circumstances and provide a common cultural vocabulary with which to discuss those experiences with others."
    • "Unsurprisingly, technology is driving new trends in film — but it’s not always driving them in futuristic ways. The Los Angeles Film School notes an increase in the use of handheld or “found” footage, as well as an increase in the use of practical effects, either alone or layered over CGI. These retro-esque tools are popular in both horror and documentary films, where they’re often used to provide a more tangible uncanny feel. "
    • "In the world of professional cinematography, large-format cameras are becoming more popular. Benjamin B at American Cinematographer describes many of the reasons filmmakers are taking these cameras more seriously, including the fact that they have a longer focal length than a Super 35, which can make scenes feel more natural by more closely mimicking the behavior of the human eye."
    • "Virtual reality and interactive films aren’t as widespread as the other trends we’ve listed here, so we’re hesitant to say they’ve reached “trend” status. But both options are well on their way."
    • "2016’s Late Shift was billed as the first-ever interactive feature film, allowing audiences to influence the characters’ behaviors and the story’s outcome. Yet, in a sense, the interactive nature of film has been on the rise for as long as films have crossed over with video games — allowing audiences to watch the stories they’ve already come to interact with."
    • "The time is ripe for virtual reality in film, as well, says Susan Ruskin, dean of filmmaking at the University of North Carolina School of the Arts. The school’s current projects include an augmented-reality version of Big Rock Candy Mountain, in which students are experimenting with a number of technological features to enhance the audiovisual experience of the old folk song."
    Quotes
    • "One of the biggest changes you may have noticed in the movie industry today is the increase in movies on streaming platforms like Netflix, Hulu, and Amazon. Rather than going to the big screen or straight to DVD, many smaller budgeted films are making their debut with exclusivity to these sites. You may have realized big-time actors starring in Netflix, Hulu, or Amazon Originals that you can watch at your disposal for a low monthly fee."
    • "Increased Diversity in Casting Likely as a result of more social groups speaking up and demanding equality, the movie industry has become more diverse in their casting decisions. Films, that may have at one time been a primarily white cast have now been incorporating other races. Women are being cast in movies that were once categorized as “male roles”. You’ll also notice that more civil and social topics are being discussed or displayed within the casting. Think of movies like Moonlight, Black Panther, or Ocean’s 8. "
    • "Franchise Reincarnation If you thought Rocky was the only movie franchise that could be remade into an amazing feature film like Creed – think again. In the upcoming years, you’ll notice a lot of directors and writers looking back at old movie franchises and remaking them for today’s audiences. Men in Black, for instance, gets a makeover with Tessa Thompson and Chris Hemsworth. Charlie’s Angels, Hellboy, and the Grudge are also on the comeback. Get ready for some old classics with a new twist. "
    • "Reserved Seating No more waiting in long lines to see the next big feature film just to end up with a seat at the front that cramps your neck. Innovators in the movie industry have made it possible for customers to reserve their seats in advance. Skip the ticket line and get seats wherever you’d like no matter what time you show up. This certainly improves the viewer experience which means huge returns for theaters. "
    • "Remember when all you could get from the movie theaters was a bucket of popcorn, some nachos, a box of candy, and a soda? Well, movie theaters around the country are changing the dining experience for viewers. Now, you can get everything from mozzarella sticks and soft pretzels to mini sliders and chicken fingers. In fact, there are some movie theaters that now offer alcoholic beverages."
    Quotes
    • "Netflix rarely releases data about its content but recently broke cover to claim that 45m accounts – nearly a third of its total – had streamed the Sandra Bullock thriller Bird Box in its first week on the platform, a record for a Netflix film, apparently."
    • "Bird Box received lukewarm reviews but propelled by Bullock’s star power, the gimmick of having to perform tasks blindfolded and a marketing campaign on par with that of a major theatrical release, became a social media sensation with thousands of people and celebs posting videos mimicking the set-up. Netflix deftly inflamed the craze by calling for greater care while doing it - but not to desist entirely."
    • "content chief Ted Sarandos declared that Netflix is “choosing to be about the future of cinema.”"
    • "With the studios ringfencing the traditional cinema-first release window, Netflix opted to copy the success of its TV originals by investing in feature-length content exclusive to its platform."
    • "Box office revenue is already being hit from a number of quarters. This year, OTT revenues will overtake theatrical revenues for the first time, according to Ampere Analysis. SVoD has already surpassed cinema in the US, and the trend is widening to include European and Chinese markets. All in, OTT is predicted to reach US$46 billion in 2019, beating worldwide box office receipts of US$40 billion."
    • "There’s growing evidence that breakout Netflix hits are also denting the prospects of theatrical releases. Analytics firm Vault modelled the potential impact of Netflix sci-fi hit Bright. Reportedly costing $90 million, the effects-heavy blockbuster starring Will Smith landed on 22 December 2017, the same weekend as Star Wars: The Last Jedi and Jumanji.According to Vault, the film would have taken $40m had it been shown in cinemas."
    • "Vault calculates that Jumanji lost $10m-15m as a result of the clash and further predict that Bright would have gone on to gross $128m – not bad for a film which received poor reviews and further testimony to the data-mining accuracy of Netflix’ machine. It seems able to pinpoint the mix of stars, story and format which will appeal when commissioning projects and generate wider audiences for films that might otherwise suffer at the box office because the films remain on the platform building word of mouth (as happened with Bird Box, Bright and Annihilation)."
    • "This is most notable in the case of Netflix where, according to Variety, Disney stands to lose $300 million a year by pulling all its content from its rival."
    • "On the other hand, that content is among the most valuable in the world. Aside from 7,000 TV episodes and a 500-movie catalogue it includes the sprawling Marvel and Star Wars universes, both of which have new feature instalments due in 2019 and live action TV spin-offs in the works (Star Wars: The Mandalorian is in development)."
    • "There is the also the potential to spawn abundant content opportunities with Avatar, James Cameron’s sci-fi extravaganza which is prepping a first-of-many feature sequels for 2020."
    • "Although Amazon beat Netflix to become the first streaming service to produce an Oscar-winning movie when Manchester by the Sea won best actor for Casey Affleck and best original screenplay in 2016 (with nominations for best picture and best director) it has adopted a more low-key strategy."
    • "Like Netflix, Amazon Studios has primarily backed director-driven projects that appeal to art-house crowds and attract awards attention. Unlike Netflix, its distribution strategy is more traditional and less disruptive. Rather than pick a fight with the studios, Amazon offers all its movie productions – which include Woody Allen’s Wonder Wheel, Spike Lee’s Chi-Raq, Lynne Ramsay’s You Were Never Really Here and Luca Guadagnino’s horror remake Suspiria – a theatrical premiere. "
    • "According to Ovum, Netflix will account for around one in three online video subscriptions worldwide in four years’ time. In many countries, its market share will be well over 50%, leaving most rival apps fighting over relatively small numbers of subscribers."
    Quotes
    • "Total Revenue in 2019 $19bn Number of Businesses 4,545 Annual Growth 2014-2019 3.6%"
    • "Over the five years to 2019, industry revenue is estimated to grow an annualized 3.6%, reaching $18.9 billion in 2019, including revenue growth of 1.0% in 2019 alone. With increases in per capita disposable income and the success of blockbuster films during the period, industry revenue has grown despite competition from substitute film viewing methods, other forms of entertainment and a decrease in total theater attendance."
    Quotes
    • "Those clouds include the fact that fewer movies are powering the box-office returns: Well over a third of revenue for 2018 comes from just 10 films, out of the more than 700 released during the year. And it’s primarily just two categories — superhero adventures and animated films — keeping the numbers afloat."
    • "Some industry insiders even suspect some of the gains were driven by MoviePass, the beleaguered subscription service that essentially provided heavy subsidies to millions of filmgoers in the first half of 2018, when box office particularly overperformed."
    • "In 2017, the numbers were stark. Box-office dollars went down, by 2 percent, a historically troubling sign given that ticket prices and the U.S. population grow every year. Admissions — the industry term for the number of tickets sold — dropped 6 percent to 1.24 billion, the lowest in 23 years."
    • "This all coincided with an 11 percent spike in the number of Netflix subscribers in the United States, a gain that put the streaming service’s tally of U.S. consumers above the 50 million mark for the first time. And Netflix, of course, is opposed to playing movies in a large amount of theaters."
    • "But in February, the Marvel movie “Black Panther” opened. And suddenly, the tide seemed to turn. The politically minded superhero release would gross $700 million in the United States, the third most of all time."
    • "It was followed two months later by another Marvel Studios production, “Avengers: Infinity War.” That film would gross $679 million — the fourth most of all time in the United States."
    • "MoviePass’s aggressive marketing — it saw subscriber totals double to 3 million in the first six months of the year — also probably played a role, experts say."
    • "But seven of the 10 highest-grossing movies in 2018 are either films with Marvel or animated characters, the industry’s seemingly only reliable pillars. An eighth is a Star Wars film. The remaining two are a Mission: Impossible and a Jurassic Park sequel. Half of the films come from Disney."
    • ". “Mary Poppins Returns” is Disney family entertainment. “Bumblebee” is major intergalactic spectacle that is a superhero movie in all but name. “Aquaman” is — of course — a superhero movie. One other recently released film, “Spider-Man: Into the Spider-Verse” — which as an animated superhero movie combines both trends — is also flourishing."
    Quotes
    • "October 10, 2018 Trends in US movie theater attendance and US video streaming household (HH) penetration "
    • "The six major superhero movies released in 2017 combined to gross more than $4 billion in worldwide ticket sales.1 The trend continued in the first half of 2018, with three superhero movies ranking in the top five most popular cinematic releases.2"
    • "According to our analysis, the number of US households subscribing to video streaming services grew from 12 million in 2009 to 71 million in 2017, a CAGR of 25 percent. This adoption is likely fueled by consumers’ strong desire for original content and the flexibility video streaming provides for consuming media wherever and whenever they want. These growth figures are further reflected in the booming valuations of several streaming organizations.6"
    • "Change often paves the way for novel business models—and we are already seeing some from movie theaters in 2018.7 One example is monthly subscription-based services that give consumers the ability to watch a fixed number of movies in theaters at a discounted price.8 Many individual theaters are also trying to reinvent themselves with their own version of subscription services and pre-feature advertising. These new approaches are already driving positive results for some theater chains."
    From Part 05
    Quotes
    • "Netflix isn’t killing movie theaters. At least, that’s the take-away from a new study conducted by EY’s Quantitative Economics and Statistics group, which finds that people who go to movies in theaters more frequently also consume more streaming content. That flies in the face of the “conventional wisdom” of box office sages, who grimly ascribe flatlining theatrical attendance to the growing popularity of digital entertainment companies."
    • "If the study’s findings are accurate, it would appear that the two forms of entertainment consumption are more complementary than cannibalistic. The study found, for instance, that respondents who visited a movie theater nine times or more in the last 12 months consumed more streaming content than consumers who visited a movie theater only once or twice over the past year. Those who saw nine or more movies at the cinema averaged 11 hours of weekly streaming compared to the seven hours of streaming reported on average by those who saw one to two movies at the multiplexes."
    • "To get its results, researchers surveyed 2,500 respondents in November — 80% of whom saw at least one movie in theaters over the past year. The study was commissioned by the National Association of Theater Owners (NATO), a lobbying group for the exhibition industry, that has been particularly outspoken in its critique of Netflix’s decision to forgo traditional theatrical releases for movies such as “Roma” or “Outlaw King.” The streaming service has allowed a few of its movies to have small exclusive theatrical runs, but largely adheres to a policy of debuting films in theaters at the same time they premiere on Netflix."
    Quotes
    • "Breaking with its long-held position, Netflix announced in late October that it would begin releasing select movies in theaters before making them available on its streaming platform, rather than on the same day. But for “The Ballad of Buster Scruggs,” the new film from the Coen brothers and the first title Netflix is distributing this way, the exclusive theatrical release was something of a mirage."
    • "In the United States, the movie played in just three cities — New York, Los Angeles and San Francisco — at a Landmark Theater in each, and for just four days, Nov. 8 through 11, rather than a standard week."
    • "Announced a little more than a week in advance, the Nov. 8 theatrical release — moved up from a simultaneous streaming-and-theaters opening on Nov. 16 — was not well-advertised. On Twitter, moviegoers complained that the film was showing only in small auditoriums."
    Quotes
    • "A study by Ernst & Young commissioned by the National Association of Theater Owners has found minimal impact on theaters by Netflix and other digital outlets streaming feature-length films."
    • "If anything, the more a consumer streams movies, the study found, the more likely they are to pay for a ticket in a movie theater and vice versa. Across all races and ages, the average number of streaming hours per week was higher for those who visited a movie theater nine times or more than for those who went to a movie theater only once or twice. Plus, respondents who visited theaters only once or twice in the last year averaged seven hours of streaming a week versus 11 hours for those who logged nine or more trips to theaters."
    • "And among those who didn’t visit a movie theater in the last 12 months, nearly half (49%) didn’t stream at all. "
    • "Teen-agers were the most avid age group, not surprisingly. Moviegoers between 13 and 17 went to seven movies and streamed nine hours of streaming content, highest of any demo."
    • "Despite all of the angst, domestic box office is showing healthy signs, crossing the $11 billion mark in record time earlier this month."
    Quotes
    • "Movie theater attendance in the US and Canada in 2017 fell to its lowest point since at least 1992, Bloomberg reports. Box Office Mojo estimates around 1.24 billion tickets were sold, a drop off of 5.8 percent from the previous year. Even with higher ticket prices, domestic revenue also dropped 2.7 percent from last year, from $11.4 billion to $11.1 billion."
    • "As Bloomberg points out, there are other factors in play, too. As streaming services like Netflix, Amazon, and HBO Go offer more entertainment options, theatergoers may be less likely to leave their homes to watch a movie. Ticket prices also continue to rise, even as startups like the subscription service MoviePass threaten to devalue the movie-going experience."
    Quotes
    • "While movie attendance has dropped slightly in recent years, 246 million people in the U.S. still see movies in the theater every year—and about 35 million go every month, according to the Motion Picture Association of America. Overall, people spent $11 billion going to movies last year. That’s still more than Americans spend on subscription streaming services — $9.5 billion last year, according to the Digital Entertainment Group."
    • "People are social, argued Alex Wallace, of Verizon’s Oath Studios and they still want to be with other people, whether it’s in a sports bar or a theme park."
    Quotes
    • "Women continued to be a major presence and spending force at the movies last year. The MPAA has published its THEME — theatrical and home entertainment market environment — report for 2017 and found that women comprised 50 percent of domestic movie audiences and bought 49 percent of the tickets. This marks a slight, but statistically insignificant, dip from 2016, which saw women make up 52 percent of audiences and purchase 50 percent of tickets."
    • "However, the majority of audience members for last year’s second and third highest-grossing films were female. Women represented 64 percent of “Beauty and the Beast’s” viewers and 52 percent of “Wonder Woman’s.”"
    • "As previously reported, the female-driven “Star Wars: The Last Jedi,” “Beauty and the Beast,” and “Wonder Woman” were the top three films of 2017. Similarly, the four best-selling DVD/Blu-rays last year were all women-centric: “Moana,” “Rogue One: A Star Wars Story,” “Wonder Woman,” and “Beauty and the Beast.”"
    Quotes
    • "After a half-decade that included massive hits like Wonder Woman, Crazy Rich Asians and Moana, one thing has become very clear when evaluating the average movie: Women have the potential to make your film a massive success. And that has never been more explicit than in a recent study from Creative Artists Agency (C.A.A.) and shift7, which found that movies starting women made more money than those starring men from 2014-2017. The findings underline the fact that diversity does well at the box office — so Hollywood no longer has an excuse for not producing films that embrace diversity, both onscreen and behind the scenes."
    • "According to the New York Times, the study also found that films that passed the Bechdel test — which evaluates female representation in film, based on whether or not there are multiple female characters, and if they talk to each other about something other than a man — also outperformed other films that failed the test. In other words: Well-written female characters are the secret to box office success. "The perception that it’s not good business to have female leads is not true," Christy Haubegger, a C.A.A. agent who was part of the research team, told the NY Times."They’re a marketing asset.""
    • "Of course, women are not the only movie-going audience that major studios aren't catering to: minorities are more likely to attend the movies on a regular basis, and those audience members are even more likely to attend films that reflect themselves onscreen. Two of 2018's biggest releases helped solidify that theory, with Black Panther raking in over $1 billion worldwide and Crazy Rich Asians becoming the top grossing rom com of the last 10 years. Both films were also major critical successes, which has resulted in awards returns as well. Crazy Rich Asians earned two Golden Globe nominations and a Screen Actors Guild nomination for Best Ensemble; Black Panther landed a Best Motion Picture, Drama nod at the Golden Globes as well as its own Best Ensemble SAG nomination."
    Quotes
    • "LOS ANGELES (Reuters) - Films whose casts more accurately reflect the racial makeup of U.S. and global populations perform better at the box office than their less diverse counterparts, according to an annual study released on Tuesday."
    • "“Our findings reveal that, regardless of race, audiences want to see diversity on the screen,” study co-author Ana-Christina Ramon said in a statement."
    • "The study’s findings have been underscored by the success this month of “Black Panther,” which grossed $400 million in North America and $304 million internationally in its first 10 days, and Oscar best picture contender “Get Out.” Both films deal with racial themes and are notable for their black lead actors, directors and writers."
    • "Last year’s superhero movie “Wonder Woman,” which grossed more than $821 million worldwide, and current Oscar best picture contender “Lady Bird” each tackled female stories told by women directors."
    • "Films in which minorities represent at least 21 percent of the cast also attracted a higher proportion of black, Latino and Asian moviegoers, sharply driving up total ticket sales, the study found."
    • "Minorities make up nearly 40 percent of the U.S. population and women 51 percent."
    • "The median global box office for a film that consisted of 21 percent to 30 percent minority actors was $179.2 million. In contrast, films with less than a fifth of minority actors, a majority of the films studied, failed to gross a median of $40 million worldwide, the worst-performing segment, the authors found."
    Quotes
    • "“Get Out,” the social thriller by first-time filmmaker Jordan Peele, featured a black, unknown lead (Daniel Kaluuya) but nonetheless became the most profitable movie of the year, grossing $253 million worldwide on a $4.5 million production budget. Patty Jenkins’ “Wonder Woman” represented a triumph for female directors, who for so long have been shut out of helming big-budget superhero action movies"
    • "CAA’s analysis shows that of nearly 100 features with budgets larger than $100 million, there is a $120 million difference in cumulative global box office average between films that have diverse casting (those with at least 30% diversity) compared with those that don’t."
    Quotes
    • "Bottom LineThough The Numbers might not be precise, it gives a good estimation of the movie genre that can provide the best ROI at the box office. Some of these films did get limited release and went on to make a lot of money through sales and rental, but many of them simply lost their respective film studios buckets of cash. Overall, horror movies consistently have the most films in the top 20 for ROI and the least in the lowest 20 ROI, while drama is the exact opposite, having just two in the top 20 and dominating the bottom 20. "
    Quotes
    • "As shown by Figure 1, the most profitable season is the summer season, made up of June, July, and August. This is followed by the holiday season, made up of only November and December. Combined, these two seasons make up more than half of the average gross sales over the yearand only over a duration of 5 months."
    Quotes
    • "Action Animation Biopics Music Christian Comedy Documentary "
    Quotes
    • "Adventure Action Drama Comedy Thriller Horror Romantic Comedy Musical Documentary "
    Quotes
    • "Movie Club differs from MoviePass — and AMC’s recently launched Stubs A-List — in significant ways. For $9 a month, it offers members one free movie, plus discounts on guest tickets, concessions and other bonuses."
    • "About 45% of Movie Club members were not previously part of the exhibitor’s existing loyalty program, and their spending now accounts for about 6% of percent of total box office at Cinemark. The circuit this morning posted record revenue in its second quarter and strong profit figures due to a surge of spring and summer attendance."
    • "Unlike other plans, Movie Club members retain their credits indefinitely — if they cancel, they can still use the credits for up to six months, Unused credits in a given month roll into future months. Even so, 75% of credits given since redemption have been redeemed."
    Quotes
    • "Only 6 percent of 2,201 adults surveyed between Oct. 11 and 14 said they are certain or very likely to sign up for a monthly plan, while 23 percent say they are split down the middle, according to a Hollywood Reporter/Morning Consult poll conducted Oct. 11-14. Another 32 percent say they aren't very likely. And 29 percent said they have no interest."
    • "AMC Theatres, the largest U.S. chain, allows moviegoers to see three films a week for $20 to $24 a month, depending upon the location. Its program has amassed more than 800,000 members since launching last year. For $10 a month, Cinemark, the third-biggest chain behind AMC and Regal, offers one free ticket per month and discounts on concessions, among other perks."
    Quotes
    • "A night out at the movies can get very costly, especially when you factor in traffic, parking and concessions. It all adds up, and many prefer binge-watching movies and TV shows in the comfort of their homes. It’s less expensive and less of a hassle to just Netflix and chill."
    • "Theater chains have to fill empty seats, and they’re pulling out all the stops: full-service restaurant-quality food and drinks served to patrons’ luxurious reclining seats, with an up-charge. But still, some of those seats remain empty. So what does it take to get movie lovers off their couches and into the theater?"
    • "In June, AMC, the largest theater chain in the U.S., reported a hefty uptick with its monthly subscription service, AMC Stubs A-List. Not only did the service just celebrate its first birthday, but it did so with 860,000 subscribers, which was much higher than the 500,000 subscribers it expected. With AMC Stubs A-List, moviegoers can see three movies per week, in premium IMAX and 3-D formats, for $20 to $24 a month depending upon location. "
    • "The app allows users to choose their showtime and seats from their phone and makes choosing a movie as easy as finding something to watch on Netflix, Hulu or Amazon Prime Video. Besides the ease and convenience with the service is the ease on the pocketbook."
    • "“Another very big advantage in the context of theater subscriptions is the direct relationship the theaters will be able to build with individual audience members. It’s hard to overstate how powerful a marketing tool that can be. Theater chains will know what movies I’ve seen, and thus be able to anticipate what movies I’ll be likely to see in the future and promote them to me in time to get me out to the theater to see them.”"
    Quotes
    • "AMC reports that 860,000 people have signed up for Stubs A-List, with the average member going to the movies 2.6 times per month. Meanwhile, the 700,000 Cinemark Movie Club cardholders go to the cinema roughly once a month. For comparison, the average American attends a movie five times per year. Regal’s parent company, Cineworld, has had success in this space in Europe, which could bode well as the Knoxville-based exhibitor gets into the subscription space."
    • " But moviegoers do use these programs to see smaller comedies and dramas, the kind of pictures they might be less inclined to spend $20 to catch on the big screen. “If a consumer says, ‘I don’t need to see this B-level movie but now I’ve already got this subscription so I will go see it, that’s a benefit to [theaters] to sell more concessions and the studio to get more views,” says Eric Wold, an analyst at B. Riley FBR."
    • "Exhibitors point out that people rarely go to the movies alone. They typically bring a friend or a spouse, and their guests may not be enrolled in a subscription plan. That means those people are paying full price for a ticket. Theaters also bank on popcorn and soda sales to even out costs. But are these new moviegoing fanatics bringing enough visitors and buying enough snacks to make the math work?"
    Quotes
    • "The truth is, we will never know if MoviePass could have been the Spotify- or Netflix-like solution to moviegoing, because unlike those companies, it was not built on the necessary financial backing needed to take on debt and grow. Less than six months into its too-good-to-be-true unlimited and unrestricted $9.99 plan, its owners had to give away 27% of their company just to cover the $45 million debt it took on over the 2017-18 holiday season. "
    • "In its latest public press release (released February 27, 2019), the chain boasted that the A-List membership now exceeds 700,000, with 100,000 of those members joining in January and February during the height of awards season. AMC also announced that, since the A-List launch, theater attendance totaled 14 million customers, which includes both A-List purchases and “traditionally-priced tickets.” In an official statement, Adam Aron, AMC CEO and President said, “The continued growth of AMC Stubs A-List to more than 700,000 members, and their dramatic increase in moviegoing, is exactly what we had in mind when we launched the program last June. Members are seeing many more movies than they did before A-List was created, are seeing movies more than once and they’re bringing their friends and family members along, who are paying for their tickets at full price.”"
    • "During Cinemark’s last earnings call in February, CEO Mark Zoradi talked up big numbers for the service: he said Movie Club had reached 560,000 active members by the end of 2018, up 26% from the end of its third quarter. Zoradi also shared that, all told, 13 million admissions have been recorded in the history of Movie Club. Put in tighter perspective: in the fourth quarter of 2018, the program accounted for ten percent of Cinemark’s total box office, up from 8 percent in the third quarter."
    Quotes
    • "AMC Theatres, the largest movie chain in the world, will allow moviegoers to reserve seats — either online or at most of its theaters in the US — beginning Memorial Day, the company confirmed to Business Insider."
    • "The chain is also expanding its mobile ordering of food and beverage heading into the summer months."
    • "The option to order your food ahead of time on the app, and either have it prepared and ready when you get to your seat (if you're at an AMC Dine-In), or waiting in a pick-up area when you get to the theater, launched in three markets in March (Boston, Denver, and Houston) and is expanding to New York, Los Angeles, San Diego, and San Francisco in May and June."
    • "And mobile food and beverage ordering is catching on with AMC customers. According to the company, the Friday that "Avengers: Endgame" opened, the company doubled its previous record of food and beverage mobile orders. The chain then broke that new record the following day."
    • "In the company's earnings call on Thursday, AMC Theatres CEO Adam Aron said US food and beverage set a new first-quarter record for the company, with a capture of $5.23 per patron."
    Quotes
    • "the new Palace Cinema of Sun Prairie features 14 auditoriums equipped with recliners wider than La-Z-Boys, large-format screens and a restaurant that serves entrees such as pesto primavera pasta during movies. The Eastgate squeezed patrons into seats measuring 22 inches across; the Palace has loveseat-style seats close to 5 feet wide."
    • "Today, exhibitors are tearing out seats and replacing them with luxury recliners—fitting fewer overall seats, but creating steadier revenue at higher prices. They’re adding high-end drinks and dining options, and sophisticated sound and screens that no home theater could replicate. Special attractions such as virtual-reality sections and child-friendly play areas are extras to entice people to leave their living rooms."
    • "Movie theaters need to lure customers who have plenty of options to watch at home, and increasingly need a special reason to come out—a big-screen blockbuster or a date-night occasion. Big-budget productions are available on Netflix Inc., and studios continue to shorten the amount of time a movie stays in theaters before becoming available at home, which threatens to push numbers down even more. AMC has reported increased attendance in renovated theaters, especially for weekday screenings that used to play to empty houses. "
    • "Regal, which has focused on offering more-profitable food and alcohol options, reported in January that while 2017 box-office revenue fell 2.6%, sales of concessions slipped only 0.3%—a sign that adding chicken panini sandwiches and Stella Artois beer to some locations was working."
    Quotes
    • "“They’ve got to get over the hump to get people to get out of their houses,” said Frederic Lahey, Director of Cleveland State University’s School of Film and Media Arts. “I know that AMC found that when they went to fancier seats (in some theaters) and reserved seating, their profits improved — even though they had fewer seats — because they found they were able to motivate people to get out of their houses.”"
    • "For a variety of reasons, Treynor said he believes the theater’s customers are far more likely to buy tickets at the front door, and asking them to pick seats there would increase their wait time."
    • "Some customers still prefer general admission. For Trey Reedy, 36, of Westerville, showing up early to find the best seats is simply part of the movie-going experience."
    Quotes
    • "There are two major problems gripping the industry. Younger audiences are becoming more interested in streamable content that is accessible on their iPhones or tablets. They’ll still turn up at the multiplexes to see the Avengers save the world or watch Han Solo slide behind the wheel of the Millennium Falcon, but despite a few massive blockbusters, the zeitgeist continues to shift from the big to the small screen."
    • "“I think the proof is right in front of us with what’s happening in cable and streaming services,” said Lorenzo di Bonaventura, producer of the Transformers films. “Directors want to go there, because they’re able to tell interesting stories…. That’s where the chances are being taken. That’s where the action is now.”"
    • "Currently, big theatrical releases are supposed to wait roughly 90 days before they’re available to be sold or rented. But studios argue that’s too long, and they want to shrink the window in which theaters have exclusive access to their films. With the DVD market fading fast, they need to find a way to prop up home-entertainment revenue. There is a belief, accepted as dogma in some studio boardrooms, that streaming services like Netflix have conditioned consumers to access content whenever and wherever they would like it. "
    • "“It’s just such an obvious thing that has to happen,” says Jessica Reif Cohen, an entertainment and media analyst with Bank of America, adding that she thinks offering films earlier in the home may be attractive for people with young children. “It may be an impulse buy, or they don’t have a babysitter, or have other reasons for why somebody doesn’t go,” she says. "
    Quotes
    • "Concessions are a serious business for AMC: Last year, food and beverage annual revenue hit the $1 billion mark for the first time in the chain’s history, up 12% from 2015 and 28% from 2014. While we often think that a downer summer at the box office like 2014’s (-15% from 2013 at $4.06B) impacts business, as long as concession sales soar for theater owners, they’re over the moon."
    • "At 240 AMC locations, those over 21 can order a movie-themed alcoholic drink. How about a “Banana Hammock” during Baywatch‘s opening week (May 25), which is a mix of Blue Chair Bay banana rum, pineapple juice and Sprite topped off with an orange wedge and cherry? Or “The Gauntlet,” which debuts during Wonder Woman‘s opening week? There’s also a “Party Ball” cup inspired by the Scarlett Johansson-Kate McKinnon comedy Rough Night (June 16)."
    Quotes
    • "Sixty years ago, a peppy group of anthropomorphic junk food snacks sweetly held hands and took a rather bouncy stroll up the aisles of an old movie theater, singing “let’s all go to the lobby, to get ourselves a treat!” Little did they know (or perhaps they did) they were on the menu. Back then, popcorn and candy were bringing in lot of revenue for theaters, so exhibitors installed new counters and stations to present and sell them. The famous animation, now preserved by the Library of Congress in the National Film Registry, was commissioned to get customers to come by and check them out."
    • "“The exhibition industry has been popcorn, candy, and soda for 90 years,” says Nels Storm, senior director of culinary at AMC. And typical concessions are not enough to grab this generation’s attention. In the age of mobile devices, streaming, and on-demand movies, cinemas are not only competing with one another, they’re battling smartphones, home entertainment, and the Internet. One solution: lure customers with better food, and transform the traditional concession visit into something more upscale and restaurant-esque."
    • "At AMC, food and drink sales make up 30 percent of the company’s profits, and is increasing at a faster rate than ticket revenue, with higher margins. In response, the brand is trying to think less like a mere movie theater chain and more like a restaurant."
    • "But when Adam Aron, a former CEO and marketing executive for cruise ship companies, hotels, and resorts, took the helms at AMC in 2016, he wanted restaurant-style experiences in every AMC theater, and soon."
    • "In April, the company announced it was upgrading its traditional concession snacks with “restaurant-quality” alternatives. Instead of the typical popcorn, nachos, and heated pizza, theaters are gearing to serve chicken and waffle sandwiches, sliders, and cheese plates with wine-infused salami. Popcorn will be upgraded to “gourmet” status featuring salted caramel, cheddar crunch, and mixed flavors. Pizzas will now be stone-fired flatbreads, and pretzels will be inflated to 1.5 pounds."
    • " Staff will have to be retrained and kitchens upgraded by Labor Day. All 400 theaters upgrading to the new menu will get new kitchen suites, where easy-to-use nacho cheese warmers, hot dog cookers, and popcorn machines will be upstaged by shiny, new fryers, ovens, and grills. Typically, employees working the concession station can easily grab customers’ orders quickly and individually, but the new equipment will possibly require a brigade system and assembly line to operate: Think of prep lines at McDonald’s or Subway."
    • "“We’re operating more like a restaurant-style kitchen with a centralized space,” Storm says. “We’re doing some significant work in the space to accommodate it from an equipment standpoint as well as training our associates to think differently, think more like restaurant associates.” AMC is currently training employees in 27 locations as a beta test. From a customer standpoint, the ordering experience will be more or less the same, AMC reps say, but with new packaging and menu screens. Mobile ordering allowing audiences to order their snacks via their phones and pick them up at the concession stands is also expanding."
    • "About 50 percent of the 339 domestic Cinemark Theatres, the third-largest movie exhibitor in the United States, feature some sort of enhanced food option, says Phillip Couch, head of food and drinks at the company. In addition to operating 17 dine-in style theaters, the chain runs more than 40 Studio Eats concepts and branded cafes, aka spaces featuring separate dining areas and fast-food dishes. They’ve been in Cinemark theaters since 2000."
    • "“When you think about it, there are a lot of businesses that are no longer around becausethey failed to innovate and keep up with consumer trends,” Couch says. “So we’re just innovating and trying to give consumers what makes that movie-going experience that much better.”"
    • "But AMC will roll out its fast-food menu concept in almost every one of its traditional locations. And despite the grim reports about movie theater attendance, the chain reported better-than-expected revenue last quarter. The company’s culinary team has high hopes for how their plans will help theaters live on, even as changes and trends shake the industry."
    • "That’s not surprising. The percentage of theaters’ revenue attributable to concession sales has climbed steadily over the past few years, even as ticket sales have fallen. In 2016, AMC’s concessions sales crossed the $1 billion mark, up 12 percent from 2015 and 28 percent from 2014. In the same time period, ticket sales sank, with poorly reviewed films, ticket costs, and myriad at-home viewing options all contributing to the downturn."
    • "So concessions are an increasingly important part of the movie exhibition business, especially as experiments like MoviePass and movie ticket subscriptions change people’s viewing habits. How we watch movies on the big screen is changing, and along with it, the way we eat at the movies is changing too. Customers want to customize their experience — not just the movies they see but the food they eat while they’re seeing them."
    • "So it’s probably no surprise that movie theaters have been reinventing the ways they sell concessions too — especially since they pocket about 85 cents on the dollar, at least for conventional concessions. Not every food item can be sold at the sort of markup that cheap-to-make popcorn brings in, but the profit margin is still enticing (particularly for theaters that add alcohol to their menus)."
    • "And that’s why, around the country, you can find independent theaters selling specialty cocktails and fancy snacks in the lobby; franchise chains like the Alamo Drafthouse cinemas, which serve up a full menu including alcohol during the meal; and even fancier fare at multiplex megachains like AMC and Regal, which in some locations are supplementing their standard popcorn and nachos routines with chicken and waffles, sliders, and paninis."
    Quotes
    • "eating upgrades are quickly becoming a staple of today’s exhibition world as both large circuits and local players alike compete in an arms race to enhance customer comfort. Luxury seating formed part of Marcus Theatres’s $50 million investment in premium features across its circuit, a push that also included large-format screens and expanded food and beverage concepts. "
    • "AMC is crediting recliner seats as a catalyst for enhancing the productivity of existing assets after average attendance in theaters with premium seating options went up by 76 percent despite a seat loss of 62 percent. "
    Quotes
    • ""Does anyone like assigned seating at the movies?" To my shock and continued consternation, many said that they did. As with so many issues dividing the nation, however, there were plenty of people who recognize this evil practice for what it is. Now I'm here to break the question down by the most common arguments in favor of reserved seating, and why they are so terribly, horribly wrong."
    • "I like choosing the seat I want without showing up early. Reserved seating is better for families. You don't have to watch the previews. "
    Quotes
    • "According to the study, subscription revenue for streaming services is expected to reach $46 billion in 2019, whereas box office revenue worldwide will top out at $40 billion. Not only is Netflix at the head of the pack with nearly 140 million subscribers globally, but Amazon has been making serious headway in that department, with other big competitors like Hulu out there as well. Plus, Disney is launching Disney+ next year in order to compete directly with Netflix, not to mention other niche services such as the horror-themed Shudder or DC Universe that can cater to a very specific audience."
    Quotes
    • "The statistic presents data on the preferred place to watch movies among American adults as of February 2018. During a survey, 54 percent of respondents stated they preferred watching movies at home than going out to a movie theater (13%)."
    Quotes
    • "It’s tempting to think that sitting in a dark theater staring at a massive white sheet won’t matter when everyone has 40-plus-inch 4K TVs, but scale has a unique ability to sweep you away. You get pulled into the sound and color in a way that you don’t feel when you’re sitting on your couch at home. There’s nothing inherently wrong with watching Star Wars on your phone, tablet, laptop, or TV. It’s just that seeing something cinematic blown up big for the eyes to feast on is still a unique, worthwhile experience. —Kwame Opam"
    • "In the movie theater, all you have is your chair, any snacks you brought or bought, and the movie you’re there to watch. You also have an empty bladder because you thought ahead, not wanting to have to get up in the middle of the film to climb over people and cause a ruckus. —Kaitlyn Tiffany"
    • "Even if you're surrounded by the same friends who are always on your couch, by going to the theater, you're refreshing a familiar social setting. Instead of talking out loud about Matthew McConaughey's abs, you and your friends are forced to speak in wordless visuals: an eyebrow raise, a side smile, an arm grab. —Lizzie Plaugic"
    • "A massive speaker system. Is it just me, or was there a lot of heavy breathing in Get Out? I realized this because I saw it in theaters, and if it wasn't in surround sound, it was at least a solid C-shape. Even if you've got some at-home speaker system so fancy, it makes you say things like "Just listen to those decibels!" while you're playing a Rush track, it's still not as good as the theater's. Horror movies in particular benefit from massive movie-theater sound: the jumps are jumpier, the screams more blood-curdling. But it doesn't hurt to hear a catchy pop song played loud as heck in a romantic comedy’s opening credits. And now that we've forced Ryan Gosling to start singing, it's on us to listen to his voice in the most dramatic way possible. —Lizzie Plaugic"
    • "Alone time. Going to the movies with friends or your significant other can be a cherished pastime, especially when you’re surrounded by an excited audience. But there’s nothing quite like being in an empty theater, the air conditioning blasting away, while you’re enjoying a film free from judgment or rude voices. Not every film affords this kind of pleasure. You certainly wouldn’t watch The Rocky Horror Picture Show by yourself, because that’s a communal experience. But the ability to have something as majestic as Princess Mononoke wash over you and you alone is a powerful thrill. —Kwame Op"
    Quotes
    • "However, beyond these blockbusters, the picture looked grim for the movie industry in 2017. Overall ticket sales declined by 6 percent year-over-year—the lowest figure in over two decades.3 Furthermore, less than 20 percent of major movies released during the year were able to recoup their production and marketing costs.4"
    • "Change often paves the way for novel business models—and we are already seeing some from movie theaters in 2018.7 One example is monthly subscription-based services that give consumers the ability to watch a fixed number of movies in theaters at a discounted price.8 Many individual theaters are also trying to reinvent themselves with their own version of subscription services and pre-feature advertising. These new approaches are already driving positive results for some theater chains.9"
    Quotes
    • "In the last line of that quote, especially, Netflix seems to be signaling that it wants more of its films in theaters, as it should. The U.S. box office racked up nearly $12 billion in revenue last year, well ahead of the $7.6 billion Netflix brought in from its domestic streaming subscribers. "
    • "Considering Netflix already has a stable of movies that would appeal to theaters, it could easily bump up its bottom line by showing them on the big screen first. If it captured just 1% of the U.S. box office, that would represent an additional $120 million in sales, much of it profit, and the international box office presents another opportunity. Disney, for example, brought in $3 billion in operating profit from its studio entertainment division, on $10 billion in revenue in its last fiscal year, showing the potentially fat margins a movie studio can deliver. "
    From Part 06