This case is an in-depth study of the motion picture exhibition industry which
exposes the tenuous and uncertain outlook for movie theatre owners. Changing
value chain dynamics and operating variables that affect the profitability of
exhibitors are discussed, with comparisons provided for the four major exhibitor
circuits in the US. The impact of evolving digital technology, trends which influence
consumer decisions (most notably, consumer viewing practices in the age of
portable devices), and constraints within the studio-dominated business model are
also reviewed in detail. The case then closes with a discussion of some of the
initiatives taken by exhibitors to confront existing environmental challenges. We will
analyse the general environment and industry environments and also:
 Perform comparative situation and strategy analyses for the four companies with
dominant market share. What are the advantages and disadvantages for each of
the industry’s top competitors?
 Evaluate the revenue sources and major costs for movie exhibitors. Discuss how
the income structure of their business impacts their financial results.
 Summarise your findings and the current situation for exhibitor circuits. Based on
your analysis, what strategic actions do you propose for the operators to
increase the appeal of the theatre setting to attract the audiences needed for
improved performance under existing industry conditions?


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