I came across an interesting article today by Roger Ebert, the American film critic & Pulitzer Prize winner, discussing why box office revenue at movie theaters are now ‘lagging far behind 2010′. I’m pretty interested in market trends, and found this piece pretty fascinating. Here is Roger’s analysis on 6 reasons why this is:
1. The absence of a must-see mass-market movie. When moviegoers hear about “Avatar” or “The Dark Knight,” they blast off from home base and land in a theater seat as quickly as they can.
2. Ticket prices are too high. People have always made that complaint, but historically the movies have been cheap compared to concerts, major league sports and restaurants. Not so much any longer. No matter what your opinion is about 3D, the charm of paying a hefty surcharge has worn off for the hypothetical family of four.
3. The theater experience. Moviegoers above 30 are weary of noisy fanboys and girls. The annoyance of talkers has been joined by the plague of cell-phone users, whose bright screens are a distraction. Worse, some texting addicts get mad when told they can’t use their cell phones. A theater is reportedly opening which will allow and even bless cell phone usage, although that may be an apocryphal story.
4. Refreshment prices. It’s an open secret that the actual cost of soft drinks and popcorn is very low. To justify their inflated prices, theaters serve portions that are grotesquely oversized, and no longer offer what used to be a “small popcorn.” Today’s bucket of popcorn would feed a thoroughbred.
5. Competition from other forms of delivery. Movies streaming over the internet are no longer a sci-fi fantasy. TV screens are growing larger and cheaper. Consumers are finding devices that easily play internet movies through TV sets. Netflix alone accounts for 30% of all internet traffic in the evening. That represents millions of moviegoers. They’re simply not in a theater. This could be seen as an argument about why newspapers and their readers need movie critics more than ever; the number of choices can be baffling.
6. Lack of choice. Box-office tracking shows that the bright spot in 2011 was the performance of indie, foreign or documentary films. On many weekends, one or more of those titles captures first-place in per-screen average receipts. Yet most moviegoers outside large urban centers can’t find those titles in their local gigantiplex. Instead, all the shopping center compounds seem to be showing the same few overhyped disappointments. Those films open with big ad campaigns, play a couple of weeks, and disappear.
So the natural question is… what’s next?
Are moviegoers starting to mass shift into online media services such as Netflix and various online platforms?
What about the current shift onto mobile platforms? What would be the dominant movie delivery service?
People will always still watch movies, so if theaters are losing their charm and the markets are pretty unpredictable right now, my prediction is that we’ll be seeing a whole new host of platforms in 2012/2013 that will completely revolutionize the movie industry.
What kind of entrepreneural opportunities would this create?







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