BY: Robert Augustin
It seems as though going to the movies is not as popularly as it used to be. Ticket sales for movie theaters are at an all time low and the price of tickets keep rising. Some can attribute this declining trend in ticket sales to the new increasing market for home theater systems.
Companies such as Bose, Sony, Samsung, and Epson are now making sound systems, projectors, and TV screens that are competing with the commercial Movie Theater. The sound that some Bose systems deliver make you feel like you are in the movie, and if you combine that with the new 4K projectors that are one the market; you might think your home is a movie theater. Lastly, the ease at which one can access movies provides another blow to the movie theater industry. Platforms such as Netflix, on demand, and movie torrent sites allow for very easy access to movies that it does not make sense to go theater, but more sense to have a home theater.
Many families are investing in transforming their basements into home theaters not only because the technology is available, but also because it is able to add value to the home, create an atmosphere that is more welcoming to family and friends, while also saving money in the long run. The average yearly cost of going to the movies is $900 for a family of four.1 Instead of wasting that money on two hours of pleasure families are saving to afford the permanent long-term investment and pleasure of having a 10,000-50,000 home theater.1 The home theater coupled with the easy access to movies gives them the freedom to watch when they want to watch. It also adds value to the home and family bonding experience.
If the industry does not find some way to increase their sales, the home theater in my eyes will eventually put movie theaters out of business. One incentive that movie theaters could offer would be selling dinner along with the movie. This would entice more people to go to the movies because it would eliminate the hassle of cooking dinner. But currently ticket sales are on the decline as you can see from the graph below. Also, I have attached some videos and links providing more information on Home Theaters.
Articles
Videos:
I do feel as though technology is starting to cripple the movie theater industry. Pretty soon I believe that movies will be going straight to homes and will be able to be purchased and watched for a flat rate of maybe $10 per time of watching the movie when they first come out and then around the time it hits what would be DVD movies will be able to be purchased for around $5. On top of this, the added costs of the popcorn, drinks, and candy that are spent on going to the movies are a lot cheaper if you just do it all at home. Unless movie theaters create a different experience I think they will slowly begin to close in the coming years.
ReplyDeleteHome theaters and pirating are also influencing factors to this post as well. The only real competitive edge movie theaters have is experience in going to a theater that may or may not have good service.
ReplyDeleteI agree with Mr. Thompson. I think this goes along with the trend of everything going digital. Movie theaters could easily fall into the same category as bookstores and even some physical stores as more and more people go online to purchase goods and services. Even if theaters offer food, people still do have the option of cooking at home or ordering delivery which would be just as convenient, especially considering the high prices of movie food. It will be interesting to see how movie theaters respond to this growing and inevitable threat.
ReplyDeleteI think the movie theater industry will die down with new technology being created, but I do not think that it will become a lost/fallen industry. This is because people, given our poor economic times, is not in positions to invest large amounts of money into home theaters. In addition, the other benefits of having movie theaters will continue to push the industry. These benefits includes: date nights, personal alone/leisure time, school field trips, and youth employment.
ReplyDeleteI do agree that movie theaters have to find some incentive for consumers to leave out and go to their facilities. However, instead of offering a meal with a movie, first I think they would have to lower the prices on the food that they do have by significant amounts. This would make customers much more willing to spend their money. As far as a concrete, innovative measure to create more demand for the theater experience, I can't think of anything right this moment, but executives need to come up with something fast.
ReplyDeleteRather than the innovation of home theaters significantly impacting ticket sales I believe it is the pirating of movies affecting sales. Due to economic hardship many would rather wait to the movie is aired on television or buy it bootleg because of the money they will save. I think it is the overall attending the movie experience which people like but do not like to pay for. If admission and food prices at the movies were not so steep I believe many people would go to the movies as a form of leisure. With internet television and movie providers like Hulu, Netflix, etc. the movies are not seen so much as entertainment anymore because elf the high prices. The price of one month of Netflix service is less that attending one movie showing. If the theatre industry adjusted prices they would be able compete with online streaming services and regain and retain customers.
ReplyDelete