conclusion

09 Jun conclusion

Running Head: ANALYSIS ON THE ENVIRONMENTAL IMPACT OF MOVIE THEATER1

ANALYSIS ON THE ENVIRONMENTAL IMPACT OF MOVIE THEATER 3

Executive Summary

This case study will analyze the external environment of the Motion Picture Theater Industry, which includes cinemas, outdoor movie theaters, and film festival exhibitors. This case will focus on the following six segments: demographic, economic, political/legal, socio-cultural, technological, and global. The purpose of this analysis is to identify any factors that may impact on the services of the customers, products, markets, staff, and profitability within the organization. The following will list some of the key subjects to remember from each segment.

First, the demographic segment includes changes in race, age, income and educational achievement. Second, the economic segment includes changes in disposable income of people, stock market instability, currency fluctuations, economic cycles, interest rates and housing costs. Third, the polical/legal segment includes changes in government policies, legislation, privatization, employment law, and environmental regulations. Fourth, the socio-cultural segment includes changes in lifestyle, education level, health, life expectancy, values and culture, and religious attitudes. Fifth, technological segment includes changes in speed of advancement of technology, communications, and industrial process. And last, global segment includes changes in customer value, management style, staff engagement, and environmental regulations.

There are other several factors that affect the movie picture theater industry, but all these above segments cover the critical factors that impact on the external environment of the movie industry. The movie industry is a very competitive market, that is why these segments are important as they allow management to be up to date to see what has a positive or negative impact towards the organization.

Movie Theater Analysis

The focus of this movie theater analysis is the description of the different factors within each segment that might have a significant impact on this industry. All of the six segments in this analysis correspond to the same aspect, they determine the outcome on the movie industry. Every segment will be covered in detail, after the last segment is covered a brief summary will be given regarding this report. The first external segment that is going to be covered is demographic following economic, political/legal, socio-cultural, technological, and last global.

Demographic Segment

The first factor in this segment is

Economic Segment

The second factor in this segment is

Political/Legal Segment

The third factor in this segment is

Socio-Cultural Segment

The fourth factor in this segment is

Technological Segment

The fifth factor in this segment is technology, which over the years has lead to new products that improve both quality and usage. The first part of the technological segment is regarding movie screens switching from 35mm film prints to digital format. The second half discusses the advantages of the digital copy and the disadvantages of 35mm film and how is helping the movie theater industry.

A big change in the movie industry field is that they’re no longer releasing 35mm film prints of movies, instead digital copies are being used. Motion pictures used to be made by Fujifilm, a film lab that used technicolor. The change to digital distribution has saved the movie industry billions of dollars. This upgrade has a positive impact, as digital projectors cost between $60,000 and $150,000 each. “Although the audience might not be able to tell the difference between movies made from analogue film and those made with digital technologies is debatable” (Alexander & Blakely, 2014, p.48). Digital technology is said to have the same detail and feel as the 35mm film, but this change matters as the cost to produce movies is cheaper and is evolving the way movies are made.

When a movie is produced by 35mm film it has to be shipped to the cinemas, this has a cost of approximately $1,500 per film. If 5,000 prints had to be sent to a cinema the cost would be $7.5 million, thus making digital movies cheaper about 90% the price of film. This not only cuts back the need to send the actual print of the film to the cinemas, it also allows platforms such as iTunes to stream a movie. Another disadvantage of 35mm film is that every time is run through a projector, the film gets damaged. Over time, the film accumulates scratches, tears, and worn edges which affect the quality of the film. When it comes to a digital copy, it doesn’t matter if the movie is played 1,000 times, the quality of the movie will remain the same and it won’t be damaged. There are many directors who prefer to use digital cameras instead of 35mm film cameras, as digital equipment is lightweight and not heavy like 35mm film cameras, also digital cameras are also easier to move around the set. It also allows directors to review the work that has been shot digitally so that if they’re not good, they can easily be reshot again, this also helps decreases the principal cost of photography.

Analysis on the Environmental Impact of Movie Theater Industry

Political

Politicians and filmmakers are from different divisions they both share the ability to ignite change or bring a shift in the patterns in traditional thinking. Despite such a difference, both have always appeared to be clever, innovative and emotional while acting as the champions for change (Beach, Share, & Webb, 2017). Due to this influence that the industry has, politicians have always wanted to have control over it and its activities. Through the legislative powers and that of the government, some policies have been put by governments to have control of the same.

For a long time, the entertainment department has proven to be a significant source of revenue for most governments. Other than the revenues, they take part in boosting the publicities of their governments thereby managing to portray that the ancient cultures and various sports. Therefore, the governments, for instance, that of India has been supporting the events organized by the theatre industry by granting tax-free benefits to the same so that they can be boosted (“Main local government taxes as % of total tax revenues of local governments (Federal/regional countries),” 2018). They are mandated to ask for permission from the entertainment departments and tax be levied upon the organizers concerning what they intend to show.

It is through the political influence that policies such as protectionist policies have been drafted to protect and guide the industry on how they have to conduct themselves. The policy regulates that quality of the items that are produced from these industries and that mechanism are put in place that make residents watch their shows. These mechanisms shape the industry, and they are now compelled to want to meet the standard.

Global

The continuous global demand for the movie and other movie theater industry products is a clear illustration of the significant impact the global world has had on the same industry. Research shows that Hollywood has attracted the attention of viewers from different countries which are not only from Asia but even in countries outside Asia (Kim & Nora, 2018). The introduction of Hollywood, a product of the movie industry has influenced its operation in terms of the benefits that it has accrued. For instance, the fact that such movies are produced in the local language and distributed to other nations into their local languages has created extreme popularity to the industry as many people are asking for such products.

Research also indicates that American movies, for instance, Hollywood has more American traits such that any moment you access them you shall have accessed American. It therefore appears that is seen to be globalized which in real sense is just but Americanization. Initially, there were territory laws that were acting as obstacles to some of the theatre products, and they prevented them from gaining access. However, the introduction of internet and satellite production has played a significant role in bypassing most of these laws. Many countries have now accepted and welcomed movies like those of Hollywood who have now gained access to places that were initially not accessible (Kim, 2018). The need has now gone a notch higher as most nations consider the business bit of it rather than their ideologies which they have somehow rendered unimportant. Such a notion has put pressure on the industry to continuously produce more product to the market and ones which are of more quality.

Social Cultural Environment

The modern world today is largely shaped by social cultural beliefs and values that have defined w whole new lifestyle. These changes have impacted several industries in different ways. Chief among the changes is the increase in the number of women in the workforce and the fact that more people are health conscious. However, when the Motion Picture Theatre Industry is concerned, there is more to watch today than ever before. While this is a good thing, there are several social concerns that have affected the industry.

According to Gimmy & Condon, (2013), there has been a sharp decline in movie ticket sales which has resulted to the closure of a significant number of theatres in North America. This has been attributed to recent developments in the technological sector which has forced operators to procure digital projection equipment. Socially speaking, viewers have also switched tastes and preferences, implying that most theatres are being forced out of the market unless they go digital. Theatrical market statistics in 2012 indicated that the growth of digital cinema is accelerating steadily all over the world.

The availability of movies on demand through website has also affected the motion picture theatre industry hard. This is because most people are more willing to access a movie online at the comfort of their homes as opposed to visiting the theatre. Theatres have therefore acquired a difficult competitor considering that movie viewing on the internet can be done via numerous devices including phones, computers televisions and game consoles.

However, on a positive note, there has been a significant increase in frequent movie goers, both young and old. A report by the Motion Picture Association of America revealed that the typical moviegoer bought 6 tickets over the course of 2012, an increase from 5 tickets the previous year (Theatrical Market Statistics, 2012). This number was also expected to improve, which it did to 9 tickets per person as of 2018. This means that the industry has received a major boost thanks to a change in lifestyle by a significant number of people who are now more willing to watch movies in theatres.

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Conclusion

In conclusion, it is evident that the political impact interferes with the freedom of the Movie Theater Industry through the legislation that is put in place. It is also important to note that the tax wavering by the government is a significant boost to such an industry and it is a motivating factor to the actor’s for the same. For the industry t fully harvest the importance of political influence, the protectionist policies should be emphasized to make sure that the industry is protected from piracy and extortion. The global influence, on the other hand, is critical. The competition from other industries and continuous demand for movies is a motivation for the theater industry to continue producing more products and of high quality. Internet and other satellite broadcast have played a major boost to the spread of movies.

Finally, in any society, the social and cultural background affects the movie theater industry, either negatively or positively. The demand is, therefore, is affected by the parental ages, level of education of the people and job status of the residents — the level of education help in creating a better understanding as well as the job status. However, from the discussion, demand reduces as one age. All these factors have an impact on the industry hence need to be taken into consideration while marketing the movie theater industry products.

References

Beach, R., Share, J., & Webb, A. (2017). Acting in the Present: Changing the Future. Teaching Climate Change to Adolescents, 131-145. doi:10.4324/9781315276304-9

Böhme, E., & Müller, C. (2011). Searching for the Concentration-Price Effect in the German Movie Theater Industry. Jahrbücher für Nationalökonomie und Statistik, 231(4). doi:10.1515/jbnst-2011-0403

Kim, I. K. (2018). Effects of Chain Affiliation in the Movie Theater Industry. SSRN Electronic Journal. doi:10.2139/ssrn.3325591

Kim, I. K., & Nora, V. (2018). Does Vertical Integration Enhance Non-Price Efficiency? Evidence from the Movie Theater Industry. SSRN Electronic Journal. doi:10.2139/ssrn.2912111

Koegel, J. (2017). Mexican Musical Theater and Movie Palaces in Downtown Los Angeles before 1950. Tide Was Always High. doi:10.1525/california/9780520294394.003.0002

Main local government taxes as % of total tax revenues of local governments (Federal/regional countries). (2018). Revenue Statistics. doi:10.1787/rev_stats-2018-table166-en

Watson, G. (2010). Parental liminality: a way of understanding the early experiences of parents who have a very preterm infant. Journal of Clinical Nursing, 20(9-10), 1462-1471. doi:10.1111/j.1365-2702.2010.03311.x