We talk alot here about Hollywood and the entertainment industry needing to embrace the new realities of consumers' preferences as quickly as possible. This post let's talk a little about the theaters.
First of all, very slowly Hollywood is getting that they need to move to multiple formats in response to consumer demands and wants. Quite a few are slowly entering into this necessary area of service.
Now here is the problem for theater owners: Where will that eventually leave them?
If the movie studios are moving to multiple formats, and they slowly are, they are not taking the theaters with them. This is something the majority of theater owners need to start considering.
What happens when movie offerings are simply one part of an asymetric package that is offered across numerous platforms and outlets that theaters only partake in one of them? Their income basically comes from concessions, ticket sales and advertising before shows. They have no other income coming in from other sources.
The theater industry needs to begin considering other areas of revenue before they go the way of the outdoor theaters. There is very little talk about this aspect of things going on. The way most talk, they are trying to make changes within the existing system and it's not going to work.
Some are complaining about the quality of films and if they increase in quality so will their business. That kind of dependence upon movie studios is a sure recipe for disaster. How can that be counted on?
I've heard others talking about sliding price strategies as the movie matures in the theater. Again, this is neglecting the real problem which is that people are now entering into a time of wanting to see what they want when they want, which requires multiple ways of viewing. The theaters offer only one way of viewing. They need to think of other ways to make money than movies.
My thought is that the studios are going to leave them out in the cold. They are fighting to survive themselves.
What answer do you think they need to come up with?
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