Product and Service
Companies included in theatre sector in admission to amusement industry are primarily theatre circuits generating revenue from admission and concession.
Demand for Product and Service
As indicated by the typical company data, the demand for print materials has been declining significantly in the past several years. The reduced demand has shifted partially to the corresponding digital platforms of those companies and, to larger extent, to other type of formats.
Sector’s Current, Trend, Causes behind trend, and Future
Current and Trend
The continuingly decreasing attendance has been the major trend in this sector of US market in the past two years, while the average ticket price has been rising. The decreased attendance also put huge pressure on revenue of food and beverage for those companies.
There is a similar trend in attendance in South America and Europe market.
Companies have been making less profit as attendance decreases due to increasing spending in marketing and shrinking margins.
Consolidation activities has been increasing.
Causes behind the trend
The downward trend in theatre industry since 2016 may be consistent with and have the similar reasons behind the unfavourable retail industry – slowing down traffic, which caused by changes in shopping habits and entertainment habits of consumers.
Increasing online shopping behaviors reduces the time of consumers spent out of home and thus reduces occasional or non-purpose spending. The consumption including shopping and watching movie in theatres thus goes either to online/in home entertainment or simply diminished.
Increasing competition from new type of entertainment may partially explain the decreased attendance of theatres.
As downward trend in this industry continues, companies may not be able to continue to raise their ticket prices.