Case 1 Movies
Case #1: Movies
Why aren’t you going to the movies?
No good movies
Too expensive
Bad experience
Other ways to see movies
Better things to do for the $
Better experience at home
What would make you go back to the movies?
Lower ticket price
Food/beer
Group discount
Cheaper
Loyalty/Reward
Older movies
Marketing (limited)
Better location
Better seats
Better technology
Better plots/TV Content
Hit Books make movies from those
No Ads
Better Customer Service
Tell people to be quiet if they are loud
Face to face service
Reserve seats
New Audience?
Daycare
What do theaters have to do to stay in business?
Lower prices
Better movies
Improve the experience (beer, no texting, beer, food, seating, high technology)
Intermission
Are there Movie Theater Assets?
Seats
Projection
Sound
Food
Bathroom
Parking
Meeting space
Presentation capabilities
Advertising
Church—rent to them on Sundays
Businesses—could use them for presentations
Plays, local music
Add more concession capabilities—restaurant
Sporting Events, out—of—town events, opera
Cinemark:
Attendance grown (gone up 33%)
Price per ticket (gone up 28%)
Concession sales 21%
Cheaper Concessions
100 million
Carmike:
Higher ticket prices
Concession sales 14%
50 million
Regal:
Sell more tickets than Cinemark
Huge debt ratio
Negative debt to equity ratio—not a desirable place to be
“Too big to fail”
Something has to change
They can always serve popcorn whether they go out twice or four times a week to get more popcorn and chemicals. It does not matter.
Receivable turnover—basically advertising money
In retail, you want to know where the turnover is. Example—Walmart is out of all of the school supplies.
Regal: (successful because they have no competition, but compared to other big movie theaters, they are not successful)
Differentiate
More movies and new movies
3-D movies that you couldn’t get at the lyric
Loyalty program
More concessions
Modern facilities
Modern ambiance
Games
The Lyric:
Focus-cost
Why aren’t you going to the movies?
No good movies
Too expensive
Bad experience
Other ways to see movies
Better things to do for the $
Better experience at home
What would make you go back to the movies?
Lower ticket price
Food/beer
Group discount
Cheaper
Loyalty/Reward
Older movies
Marketing (limited)
Better location
Better seats
Better technology
Better plots/TV Content
Hit Books make movies from those
No Ads
Better Customer Service
Tell people to be quiet if they are loud
Face to face service
Reserve seats
New Audience?
Daycare
What do theaters have to do to stay in business?
Lower prices
Better movies
Improve the experience (beer, no texting, beer, food, seating, high technology)
Intermission
Are there Movie Theater Assets?
Seats
Projection
Sound
Food
Bathroom
Parking
Meeting space
Presentation capabilities
Advertising
Church—rent to them on Sundays
Businesses—could use them for presentations
Plays, local music
Add more concession capabilities—restaurant
Sporting Events, out—of—town events, opera
Cinemark:
Attendance grown (gone up 33%)
Price per ticket (gone up 28%)
Concession sales 21%
Cheaper Concessions
100 million
Carmike:
Higher ticket prices
Concession sales 14%
50 million
Regal:
Sell more tickets than Cinemark
Huge debt ratio
Negative debt to equity ratio—not a desirable place to be
“Too big to fail”
Something has to change
They can always serve popcorn whether they go out twice or four times a week to get more popcorn and chemicals. It does not matter.
Receivable turnover—basically advertising money
In retail, you want to know where the turnover is. Example—Walmart is out of all of the school supplies.
Regal: (successful because they have no competition, but compared to other big movie theaters, they are not successful)
Differentiate
More movies and new movies
3-D movies that you couldn’t get at the lyric
Loyalty program
More concessions
Modern facilities
Modern ambiance
Games
The Lyric:
Focus-cost