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US movie theatre market to record revenue of $13.2 billion

Industry Sector

Leisure

Published

7 August 2012

Author

Matt Bodimeade

Type of News

Market

The US movie theatre market has been anticipated to increase at a compound annual growth rate (CAGR) of 0.2%, to record revenue of $13.2 billion in 2012.

This is a slight contrast to the five years leading up to 2012, where industry revenue was expected to decline at an annualised rate of 0.9%.

This recent rise in disposable income is expected to be the main driver behind the growth in consumer spending.

The US movie theatre market comprises approximately 2,000 companies that operate an estimated 5,000 indoor theatres and 300 drive-ins. Major companies include AMC Entertainment, Cinemark, and Regal Entertainment, with the 50 largest companies generating nearly 85% of total industry revenue.

Enhanced cinema experiences like 3D technology and luxury theatres attract a steady audience, partly counterbalancing low consumer spending.

The US movie theatre industry competes with many video product viewing and access alternatives, including cable and satellite TV, iPods, cell phones and internet movie downloads to computers and game consoles.

This competition is a major driver for investment in theatres, but it has also spurred some companies to consolidate or declare bankruptcy. Several major players have closed underperforming locations and made significant acquisitions elsewhere.

Most movie theatres offer a wide variety of subsidiary revenue generators, generally in the form of food and drink in the foyer or lobby before entering the theatre. For those movie theatres that cater to the dinner crowd food becomes a major source of revenue.

Ticket admissions account for almost 70% of industry revenue, while food and beverage sales account for more than 20%.

For more information on the US movie theatre market, see the latest research: US Movie Theatre Market Report

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