The Ability Of View Movies At Home - 1506 Words

The ability to view movies at home is also a major threat. There have been significant developments in home-viewing technologies. For instance, the average home entertainment system, which consists of a large HD television and high quality sound system, can be purchased for less than $1500. These advances in technology, coupled with lower prices, can prove to be a major threat to movie exhibitors. In the case, Paul Dergarabedian, president of Hollywood.com’s box-office division, referencing the trend toward online movie viewing mentioned, â€Å"There is more competition for the eyeballs of consumers.† This describes another significant threat for movie exhibitors. Streaming services such as Netflix and Hulu are growing at exponential rates. In†¦show more content†¦This expansion will create a need for additional resources to conquer the language and cultural differences by tailoring products to the local market. Developing markets are characteristically the best region in which to develop a new theater since resources and capabilities can be easily shared between theaters. Growing markets in Nigeria, India, and China are great regions for investing due to the high amount of consumer disposable income (Movies, 12). Cost Leadership Exhibitors can move toward a cost leadership strategy to compete on the lowest price in the industry. Implementing this strategy will allow the movie exhibitor’s to renegotiate the contracts with the studio producers to keep the movie theaters financially stable. Exhibitors should pursue a solution in lowering the percentage the production studios receive from the movie theater for ticket sales. In addition, these theaters should also seek a longer release window before movies become available