Movie Industry Essay

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Movie Industry Case Study General External Environment Demographic Segment The general audience for the movie theater is 12-24-year-olds. This demographic group is buying almost 40% of all tickets. Therefore, the advertisement and offered food and drinks in the movie theater are targeting these teenagers and young adults. However, some movie theaters focused on attracting an older generation, people between the age of 35-50 by offering drinks from the bar, comfortable seats, and better dining experience. This business model is not widely used but big players like AMC trying to experiment with it to offer better service. Furthermore, while the US population is growing by 17%, the targeted demographic group (12-24-year-olds) population will increase only by 9% which is not favorable for the industry. Economic Segment Historically, the general was that during the recession and economic depression, people increase their visits to the movie theaters. By doing so they are trying to escape reality and at least for two hours experience the magic of the motion picture. However, during the recent crisis of 2008, the attendance dropped by 4% because people have cheaper substitutes like home theaters where the movie subscription can be bought for cheaper. Going to the movie theater stays the cheapest way of entertainment but it becomes irrelevant when many households can have the same experience from their houses. Political/Legal Segment There are no political or legal issues that impact the movie industry. Sociocultural Traditionally, there were four reasons for people to go to the movies: watch a movie on the big screen, enjoy the movie theater quality sound, to get out of the house, and the local place for dating. As the TV screens became bigger and the home sound systems were able to deliver the same movie theater quality sound, the first two reasons for people to

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