Long-Term Competitive Standing Of The Movie Exhibitors
To strengthen their long-term competitive standing the movie exhibitors should focus on increasing the level of differentiation amongst the four main players in the industry. The exhibitors must offer outstanding customer experiences, in a way that it can’t be easily replicated by the other players. The exhibitors have the opportunity to capture a new revenue flow by diffusing beyond the general concession stand offers. Various theaters already offer in-lobby dining, and in lobby restaurants where the primary profit center is generally the bar, focusing on the experience of the theater with luxurious settings and upscale food. The movie exhibitors can deliver a superb customer experience by combining the upscale dining experience with the enhanced viewing experience. Movie theaters are among one of the few entertainments which offer tickets without a commitment to the purchasers’ viewing experience.
During concerts and other sporting events, the customers are always willing to pay more if it means a better viewing experience or a change to meet the artist/celebrity. Movie exhibitors use the first-come, first-select seating model with some elements of reversed sitting. Customers won’t have to rush to arrive early at the theater, so they can then wait in line for tickets, rush again to get a good seat in the theater. An ambitious plan for the movie exhibitors to gain and maintain a competitive advantage would be to offer alternative content. Events could include private live concerts, theater, opera, sporting events, television series premiers, marathons, and finales. Hosting such events would not only increase attendance but also provide different opportunities to partner up with major sports Leagues such as the NFL, NHL, NBA, MLB, and with other various celebrity performers.
During select sports playoffs, the exhibitors could host game nights for the preferred fan base and provide luxury seating and larger viewing experience. Offer memorabilia sales while still profiting from concessions. This would give the fan base a more exciting, comfortable time while watching their favorite sports team during big games. Hosting other celebrity performers would also bring in an alternative fan base, which would bring in various profits from signings, memorabilia, and select ticket sales.
Ticket pricing would be based on seating arrangements and this would provide the fan base with a more private showing than it would be as if they attended a larger showing such as inside of a stadium. Hosting television series would also bring in another alternative fan base in which the customers can watch exclusive television series while selecting and purchasing the present and future show times of the preferred episodes are showing. Providing such forms of entertainment would allow movie exhibitors to create new content, increase traffic and customize the experience for all customers.
