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Moviehouse Essay

3610 words - 15 pages


 

 

 

 

 

 
Market  feasibility  overview  
Hempstead,
 NY
 

 
June
 2012
 

 

 

MOVIE  THEATRE
 

 

Overview
 

Members
 of
 Renew
 Hempstead
 have
 suggested
 and
 shown
 strong
 support
 for
 development
 of
 a
 
movie
 theatre
 in
 downtown
 Hempstead.
 Renaissance
 Downtowns
 engaged
 our
 firm
 to
 explore
 
the
 potential
 market
 viability
 of
 a
 movie
 theatre.
 This
 brief
 summarizes
 our
 findings.
 

 
In
 comments
 on
 the
 Renew
 Hempstead
 website,
 members
 recommended
 the
 following
 possible
 
characteristics
 for
 a
...view middle of the document...

cluegroup.com
 


 

 

1
 

 

1. The
 practice
 of
 “clearance”
 effectively
 gives
 preference
 to
 chain
 theatres
 to
 exhibit
 first-­‐run
 
movies,
 making
 it
 difficult
 for
 independently
 owned
 movie
 theatre
 to
 exhibit
 new
 major-­‐
release
 movies.
 

 
2. Streaming
 content
 from
 online
 sources
 now
 makes
 it
 easy
 for
 people
 to
 choose
 from
 a
 vast
 
range
 of
 movies
 and
 watch
 them
 in
 their
 homes
 and
 on
 mobile
 devices.
 This
 has
 had
 a
 
measurable
 impact
 on
 the
 movie
 theatre
 industry:
 according
 to
 the
 Motion
 Picture
 
Association
 of
 America,
 1.57
 billion
 tickets
 were
 sold
 in
 2002,
 versus
 1.28
 billion
 in
 2011.
 It
 is
 
affecting
 film
 exhibition
 in
 several
 indirect
 ways,
 including
 increasing
 ticket
 price
 sensitivity
 
and
 underscoring
 the
 importance
 for
 theatres
 to
 generate
 revenues
 from
 concession
 sales,
 
facility
 rentals,
 special
 events,
 and
 other
 methods.
 

 
3. Digital
 film
 distribution
 now
 makes
 it
 possible
 for
 theatres
 to
 offer
 a
 much
 broader
 range
 of
 
content
 than
 ever
 before
 –
 not
 just
 movies,
 but
 also
 live
 concerts
 and
 sports
 events,
 
corporate
 videoconferences,
 videogames,
 distance-­‐learning
 classes,
 and
 many
 other
 
activities.
 In
 slightly
 more
 than
 a
 decade,
 digital
 cinema
 has
 become
 the
 industry
 standard;
 
most
 new
 movies
 will
 be
 distributed
 in
 digital
 format,
 and
 many
 older
 movies
 are
 being
 
converted
 from
 film
 to
 digital.
 Digital
 projection
 equipment
 is
 considerably
 more
 expensive
 
to
 buy
 and
 maintain
 than
 film
 projection
 equipment
 –
 digital
 projection
 equipment
 averages
 
approximately
 $100,000
 per
 screen
 (versus
 roughly
 $50,000
 per
 screen
 for
 film
 projection
 
equipment),
 has
 a
 shorter
 lifespan
 than
 film
 projection
 equipment,
 and
 can
 cost
 $5,000-­‐
$10,000
 annually
 to
 maintain.
 But,
 because
 digital
 distribution
 makes
 it
 possible
 for
 theatres
 
to
 offer
 a
 broader
 range
 of
 programming,
 during
 a
 broader
 range
 of
 operating
 hours,
 it
 also
 
offers
 the
 possibility
 of
 increased
 revenue
 to
 theatre
 operators.
 Over
 half
 of
 all
 movie
 
theatre
 screens
 are
 now
 digital.
 

 
In
 order
 to
 exhibit
 commercial
 films,
 theatres
 lease
 films
 from
 film
 distributors
 who,
 in
 turn,
 
work ...

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