Movie Theaters Needing to Evolve Essay

Total Length: 611 words ( 2 double-spaced pages)

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.....shift in the movie industry. Indeed, what used to be done exclusively or mainly in theaters and such is now something people do at home more and more. The emergence and advancement of streaming and video rentals of superior form have changed the movie theater industry, and mostly for the worst. There have been aberrations here and there. The recent Guardians of the Galaxy movie and its $333 million domestic haul was certainly an example and manifestation of this. Even so, the state of affairs in the industry can and should be looked at through the prism of Porter's Five Forces and that is precisely what shall be done as part of this case study. While there is still a niche for the traditional movie theater fare, the movie industry will have to evolve just like the movie rental industry did, and for very similar reasons.

Threat of New Entrants

When it comes to the plight and prospects of the theater-bound movie industry, the new entrants are already present and already wreaking havoc. Further, the depth and breadth that firms like Netflix and other streaming or video rental option firms have is clear and obviously present.

Threat of Substitutes

The big problem for the movie theater industry is that the options that are present in the home very much align with (or even surpass) the performance and experience that can be offered in theaters. Even when that is not the case, some people simply do not wish to go to a theater, do not feel it is worth the money or any other litany of reasons.

Customer Bargaining Power

The Porter force that movie theaters have to take the most seriously is the implicit customer demand that they will go to the theater but only if it is "worth their time". Some, but not all, theaters have answered this clarion call by severely ramping up or otherwise shuffling things like pricing, amenities and concessions. Just a few examples are private (or nearly private) theaters and the option to enjoy dinner and movie at the same time rather than being limited to popcorn and candy.

Supplier Bargaining Power

It is not as if the suppliers, those being the movie theaters and the people that make the films, do not have bargaining power. Indeed, they are able and willing, at least in many instances, to offer content and an experience that the filmgoers will crave. However, if there is no substance or "going the extra mile", many moviegoers are more than willing to stay home.

Industry Rivalry

There is obviously an element of competition when it comes to movies. Indeed, the Marvel "universe" that contains the Guardians of the Galaxy nameplate has its own rivals such as DC Comics. Beyond….....

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