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Study about economic impact of theaters 07 Sep 2006 13:08 #13274

  • rotorjoc
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My friend said that there used to be a link on here to a paper by a college student about the economic impact of movie theaters on small towns. I've tried searching on different keywords but haven't had any luck finding it. Does anyone know what the link would be, if it is still out there somewhere?

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Re: Study about economic impact of theaters 07 Sep 2006 15:41 #13275

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http://www.uwex.edu/ces/cced/dma/ is the full study on supporting and attracting and making downtowns happen. Chapter 12 says "you got to have a movie theatre"

12. Evaluating Movie Theater Opportunities

This section of the toolbox provides a method for quantifying market opportunities specifically for movie theaters located in the downtown district. It includes techniques for estimating market demand and supply in terms of square feet of theater space, number of screens and other more qualitative and equally important market considerations. Finally, more advanced analysis techniques using GIS are provided.

Movie theater trends have changed the industry over the years. From the ubiquitous movie palaces that dotted nearly every community’s downtown to the current rash of megaplexes with 16 or more screens on the edge of town, the movie exhibition industry has always had to adapt and change with the demographics, technology and demand from the community. While movie theaters can provide a viable entertainment option keeping the downtown active later in the evening, movie theaters are more than a social, cultural and entertainment outlet. They are a business. Any romantic notions of bringing the movies downtown should be tempered with the reality of movie theaters as a capital-intensive business dependent upon consistent and quality product (movies).

In some smaller communities, movie theaters do not survive as a business, yet are still operated as a service to the downtown and surrounding community often as a non-profit, a cooperative or city-owned endeavor. For examples of alternative owning and operating strategies for downtown movie theaters, see the March, 2005 Let’s Talk Business newsletter at: http://www.uwex.edu/ces/cced/lets/Mar05ltb.html.

Overall there a few key questions to determine what entertainment venues will have the greatest potential:

 What do the local demographics suggest about the market demand?
 Based on lifestyle characteristics, what are the preferences of the various market segments?
 What and where are the existing movie theaters in the downtown, trade area, and region? What types of movie experiences do they provide? (First run, discount theaters, restaurant and movie combination, independent, foreign and classic films, etc.)
 What movie theater concepts (in all forms) are missing from the downtown district and/or trade area?

Using market analysis findings, you can draw conclusions regarding the viability of certain venues. However, the movie theater industry is complicated; therefore, a more thorough market feasibility study will have to be conducted to determine final location, size, and financial pro forma results. The following flowchart describes the analysis process.




Demand Supply





Exhibit 12.1 - Evaluating Movie Theater Opportunities
Movie Theater Trends

Recent trends in the movie exhibition industry emphasize megaplexes (16 or more screens), multiple story stadium seating and digital sound and picture. While Megaplexes may work well in large metropolitan areas, smaller cities may not have the population or density to support such large developments. The large footprints required for these developments may not fit in with downtown plans focusing on creating pedestrian friendly districts emphasizing a sense of history and place. Not every market will support a megaplex, and there is a demand for everything from single screens, miniplexes (2 to 7 screens) and multiplexes (8 to 16 screens) on up.

While supply and demand are essential to determining if there is a viable market, the following elements specific to the movie theater industry are essential to consider:

 If you are entering a competitive market (where competitors are geographically close), will you be able to get access to your preference of first run prints? Often when movie theaters are geographically close together they may be unable to run the same movie. This is a concern if only one movie theater in a community can book a film like Harry Potter and make good profit and concessions for weeks on end. In markets with large chain movie theaters, it is harder for smaller or independent movie theaters to gain the advantage.

 The question of the number of screens is an important one. Single or twin screen movie theaters are often not first run, due to the contractual limitations of running first run movies (holding the movie for a certain number of weeks and sometimes guaranteeing a certain attendance or gross). The current trend is to build movie theaters with a minimum of 6 or 8 screens featuring a few larger auditoriums, with the remaining auditoriums of increasingly smaller sizes. As a movie “ages” and draws a smaller audience, it can be moved to the smaller auditoriums while the newly opening films can be screened in a larger one. In this way, the risk of choosing a poor performing movie is spread out over enough theaters that ticket sales should not suffer too greatly.

 Renovation of an existing facility, whether an historic movie theater or other building being converted, brings it’s own set of issues. Questions to consider when considering renovation or reuse of an existing facility include but are not limited to the following:

o What is the capacity of the movie theater(s)?
o What, if any, equipment is included in the sale?
o Does the movie theater have proscenium (stage) or enough of one to allow for musical or theater performances?
o What are conditions of seats, lobby, screen, restrooms, etc?
o Are there concession area / equipment available?
o Is there a problem with an obstructed view?

• To help identify new trends, try consulting the website of the National Association of Theatre Owners at [url=http://www.natoonline.org.]www.natoonline.org.[/url] In addition, the Motion Picture Association of America publishes a series of reports on the industry each year that are available on their website, [url=http://www.mpaa.org.]www.mpaa.org.[/url]

Summarizing Trends and other issues

In considering the items above, write up your conclusions in paragraph form. Remember to consider any concerns around:

• The process for booking films in the area
• Whether or not there is a desire to build new or to redevelop and existing facility including the potential size and number of screens
• Site specific issues of location and condition of the land, building etc.
• The opportunities and constraints of the specific downtown location desired

Movie Theater Demand Analysis

Step 1 – Demographic Analysis

Selected demographic data is one factor in gauging consumer interests (age breakdowns) and ability to participate (income). Most of the demographic data considered below has been gathered when the “Analyzing Customer Demographics and Lifestyle Data” section of the toolkit was completed. The demographics gathered were those for a specific trade area. Before continuing on, it is important to reconsider if the trade area used in the past section is still appropriate to use in a specific market such as movie theaters, as different products and services can have different trade areas. Are reasonable drive times included in the earlier consideration of the trade area? Does the trade area reach far enough? Refer to the section of the toolkit titled, “Analyzing your Trade Area,” for more details. Once you have identified the trade area, continue by filling in the information below. Sample data has been entered into the trade area population column as an example only. A blank worksheet is available in Appendix A.

Trade Area Population State U.S.
Total Population 19,065***
• Historical population growth rate/yr 1.23 %
• Projected 5-year population growth rate/yr 1.23%
• Projected 10-year population growth rate/yr 1.23%
Number of Households 7,465
Average Household Size 2.53 people
Percentage of Households with Children 35%
Percentage of Population aged 10-24* 18.8%
Percentage of Population aged 25-44* 30.2%
Percentage of Population aged 45+* 37.5%
Percentage of Population aged 55+* 22.7%
Number of college students** Some commuters
Per capita Income $22,427
Housing Starts – Current Year 55 for 2004 in villages only
 If the demographic data available does not fit into these age categories, try to use categories that are similar and consistent.
** The best source of data on college student population may be from colleges and universities proper. Note whether the schools are more commuter or residential in nature.
*** Sample data provided as an example only based on data from the Villages of Sauk City and Prairie du Sac

Exhibit 12.2 – Demographic Analysis

In particular, age, education, housing starts, average household income and population growth in younger age categories could be advantageous. The Motion Picture Association of America publishes an annual Movie Attendance Study entitled, “US Movie Attendance Study.” Here are some key findings from the 2004 report:

• The 12-29 age group represents almost half of annual theater admissions

• Frequent moviegoers (those attending at least once per month in a year) make up 81 percent of total admissions. The most frequent moviegoers are those aged 18-20 years old (53 percent)

• Of the total population aged 12 and over in 2003, 72 percent were moviegoers

While families, teenagers, college students and young couples are essential to movie ticket sales, it is important not to overlook any demographic. A community with a sizable retirement population may want to program special daytime screenings. The presence of a local film society could also encourage sizable ticket and concession sales at the movie theater. Collaborations with local groups and organizations along with targeted marketing and promotions may provide the needed boost in admissions.

In examining the demographics in exhibit 12.2, consider not only the current population but future projections. Population growth is always a factor in locating a business in a community. Consider which population segments are growing quickly and to what extent they will continue to grow over 10 to 20 years. Also, compare the population growth to that of other communities in and around the trade area.


Step 2 – Analyze Lifestyle Characteristics

Lifestyle segmentation systems such as Community Tapestry TM consumer classification data from ESRI can be used to learn about entertainment and recreation preferences for household groups in the trade area. The ESRI data provides an index as well as the number and amount spent on movies for different lifestyle groups. Data available from ESRI includes information on the total number of individuals in a specific lifestyle group who:

 Attended movies in the last 6 months
 Attended movies in the last 90 days, less than once per month
 Attended movies in the last 90 days, once a month
 Attended movies in the last 90 days, 2 -3 times a month
 Attended movies in the last 90 days, once a week or more
 Prefer to see a movie after the second week of release.

While movie attendance cuts across many income groups, understanding where people are in their life stage can provide more insight into what programming would be most appropriate for each group. One example would be a trade area consisting primarily of “Laptops and Lattes” as classified by ESRI. These affluent singles in metro markets may pay more for a more upscale movie environment, or they may prefer foreign and independent films.



Step 3 – Consumer Attitude Research

Surveys and focus groups can help assess demand specific to your particular community and/or trade area. Surveys can be conducted on local residents, regional residents, daytime population, and visitors. More information can be found in the section, “Assessing Consumer Attitudes” in the toolkit.

Sample questions that could be added to a consumer survey include:*

 Have you attended a movie at a movie theater in the past year?
 How many times have you seen a movie in a movie theater in the past 30 days?
 How far are you willing to drive to get to a movie theater?
o One to three miles
o Four to seven miles
o Eight to 15 miles
o 16 to 30 miles
o More than 31 miles
 Excluding the cost of the movie ticket, how much do you spend on popcorn, candy, soft drinks and other food?
o I never buy food or drinks at a movie theater
o $1 – $4.99
o $5 –$9.99
o $10 – $14.99
o $15 – $20
o More than $20
 When you go to a movie, do you decide on the film before arriving?
 Rank the importance of the following features of a movie theater:
o Historic building
o Stadium seating
o Good sound
o Good projection
o Size of the screen
o Clean lobby/theater/restrooms
o Convenient location (short drive/walk/bus ride to movie theater)
o Affordable ticket prices
o Affordable concession prices
o Good concession food
o Other activities in movie theater lobby (video games, etc)
o Convenient show times
o Independent / Foreign films
o Family films
o New releases
o Proximity to restaurants, other entertainment venues
 How many times in the last year have you just “shown up” to a movie theater and picked a movie from those playing?
 How often do you visit downtown for entertainment/recreation activities?
 How often per month does your household (1) rent movies? (2) watch movies at a theater?
 How often per month does your household visit downtown for entertainment/recreation activities?
 What types of books and magazines do you read? (provide a list to choose from)
 Demographic questions (include gender, age, ethnicity, family size, etc.)
*Some questions adapted from: http://www3.interscience.wiley.com:8100/legacy/college/mcdaniel/0471684767/questionnaire/questionnaire.doc


Step 4 – Demand Analysis in Square Feet and Number of Screens

Beyond analysis of consumer behavior, it is also essential to examine the expenditures made at movie theaters in the trade area. To estimates the trade area’s consumer spending potential we can easily calculate sales dollars as well as square feet of retail space and number of screens for movie theaters in the downtown districts.

The steps in the calculations are based on available secondary data from the U.S. Economic Census and the Urban Land Institute. Local trade area population and per capita income collected in Exhibit 12.2 will be used in our table below. Purchasing potential index data is available from some private data firms or it can be entered and calculated as demonstrated below. Exhibit 12.3 explains how the Demand Calculator works. The calculations can also be performed manually as demonstrated in this exhibit’s example.

Estimating Demand Data Source Movie Theaters
1. Calculate Purchasing Potential Index (PPI)
Use the trade area population determined in Exhibit 12.2 to determine the “purchasing potential index” (PPI). PPI is calculated as the trade area’s per capita income divided by the U.S. per capita income. PPI can also be obtained from reports produced by private marketing data firms.
Trade Area and Demographic sections of your market analysis Trade Area Population = 19,065

Purchasing Potential Index = 100*($22,427/$21,587)
= 104
2. Calculate U.S. Annual Per Capita Sales*

Calculate national spending in movie theaters. Divide the total U.S. Population by the total U.S. movie receipts as found in the 2002 U.S. Economic Census. Per capita spending is based on a 2002 U.S. population of 287,941,000. U.S. Census Bureau Economic Census Industry Series Reports Information 2002$ Sales Per Capita:
(National)

$11,099,222,000
/287,941,000

Movie Theaters = $38.55

3. Calculate Trade Area Per Capita Sales

Adjust per capita spending in step 2 by multiplying it by the PPI from step 1.
See above
2002$ Sales Per Capita:
(Trade Area)

Movie Theaters = $38.55 x (104/100) = $40.09

4. Calculate Trade Area Demand (in Sales)

Multiply trade area population by the per capita sales in step 3.
See above 2002$ Sales Demand:

Movie Theaters =
$40.09 x 19,065 = $764,300
5. Calculate Trade Area Demand (in Square Feet)

Divide total sales in step 4 by typical sales per square foot for a community shopping center. Sales per square foot data is available from the publication, Dollars and Cents of Shopping Centers, 2002, Urban Land Institute, Washington, DC. Data at right based on Urban Land Institute data Current Demand in Sq Feet:

Movie Theaters in Community shopping centers: $60.57

$764,300 / $60.57= $/12,618 SF

6. Calculate Trade Area Demand per Screen

Divide total sales in step 4 by typical sales per screen. Sales per screen data is available from the National Association of Theatre Owners (www.natoonline.org)
Data at right based on National Association of Theatre Owners data Current Demand per screen:


$764,300 / $264,634 per screen= 2.9 screens

*Sales figures above include all movie theater sales including admission, concessions and other spending.

Exhibit 12.3 – Estimating Demand in square feet and number of screens

Summarizing Demand

In examining the four steps above, write up your conclusions in paragraph form. Try using the questions in the above text in addition to those below as a guide:

• Does the demographic data indicate enough current population and growth in key categories to support a movie theater?

• Do the lifestyle characteristics of those in the trade area indicate a strong movie-going behavior?

• Does the Consumer Attitude Survey provide a clear indication of strong movie-going behavior? If so, is there a tendency toward a certain type of theatre, location, price point, environment or type of movie product?


Movie Theater Supply Analysis

Step 1 – Inventory of Existing Supply (Qualitative Analysis)

The evaluation of supply is essential in determining the potential for a movie theater market in general, and secondarily which type of market (first run, second run, independent/foreign film, etc.). In filling out the form below, include all venues, which offer movies to the public including colleges, universities and recreation/senior centers in addition to traditional movie theaters. Complete a column for all movie venues in the trade area. Because people are willing to travel farther for entertainment, inventory all venues in the broader region. Depending upon the geographic location, the broader region could be as far as a 100-mile radius, or about an hour and a half drive time. In larger metropolitan areas, this radius may vary. A blank worksheet is available in Appendix B.

This information can be mapped with GIS to provide visual cues as to where a movie theater market may or may not reside with respect to the closest competition. More information on this is provided in “Advanced Topics: Analyzing Movie Theater Demand and Supply with GIS” following this section.

Theater 1 Theater 2 Theater 3
Name & Address of Movie Theater
(include zip code) Bonham Theatre & Video
564 Water Street
Prairie du Sac, WI 53578 Al Ringling Theatre
136 4th Ave.
Baraboo, WI 53913 Desert Star Cinema 1301 Wisconsin Dells Parkway South Dr, Lake Delton, WI 53940
Total Square feet Unsure 11,496 square feet (includes lobby but not restrooms) Unsure
Total # of screens 3 1 15
Drive time from downtown Located Downtown 25 minutes 35 minutes
Total number of seats Unsure 802 seats in single theatre includes boxes Unsure
Types of Films o First Run
o Second Run
o Independent/Foreign
o Other o First Run
o Second Run
o Independent/Foreign
o Other o First Run
o Second Run
o Independent/Foreign
o Other
Movie theater used for public performances (describe) It doesn’t seem so. Yes – two galleries available for art. Theatre also used for performing arts (music and theatre). No
Movie theater / Restaurant combination No No No
Ticket Prices Adults $6.50

Youth (note age ranges) $4.25 ages 12 & under

Students: no discount

Seniors: $4.25 ages 65+

Other Discounts: $4.25 matinee on Saturdays and Sundays Adults: $6.50

Youth (note age ranges) $4.50

Students no discount

Seniors $4.50

Other Discounts:
Matinees $4.00


Adults: $8.00, $5.75 matinee

Youth (note age ranges) $5.50

Students: no discount

Seniors: $6.00 ages 60+

Other Discounts: Star Card allows customer to earn points toward free concessions
Excessive Wait?
(Describe) Will visit in the future Will visit in the future Will visit in the future
Stadium Seating?
No
No Probably but unsure
Digital Sound? Unsure Unsure Yes
Digital Projection? Unsure Unsure No
Historic Movie theater? The Bonham is a recently renovated historic theatre with a nice Marquee. Historical Movie Palace recently completed phase one of restoration. It has a lovely lobby and box seating. No
Other rental opportunities? (describe) Unsure – but would assume so. Yes – Definitely a community-oriented facility available for screenings, meetings and more. Yes – Available for group screenings, meeting space and birthday parties
Other unique features – atmosphere, reputation as a trendy spot, etc. The Bonham has a video store in its lobby; the only one in the area effectively capturing the entire movie entertainment market. Features tours daily in the summer as well as during the year. Also known for quality regional musical and theatrical entertainment. A local film society has screenings here as well. There is a desert theme. Seating is nice and the lobby is interesting.
List complementary businesses within the downtown district (describe) A few restaurants, 5 & 10 store and taverns. Not many are open by the time the movies play or exit in the evenings. The theatre is surrounded by local restaurants, a coffee shop and other retail shops. There is an effort to create evening traffic downtown. Not located in a downtown – located near Highway 23 in a heavy tourism area near Noah’s Ark and similar tourist businesses.

Exhibit 12.4 – Supply Analysis

The above information on competition is essential in finding any gaps in the market that might signal the potential for a new movie theater in the trade area. What it also provides is an opportunity to examine the characteristics of successful downtown theaters in other communities. Focus on communities able to support a downtown movie theater with similar population size, demographic characteristics and distance from major metropolitan areas, and try to answer these questions:

• Is the movie theater part of an entertainment district with restaurants and other evening and nighttime draws?

• What complementary businesses or events help contribute to the vitality of the downtown? (Complementary businesses can include coffee shops, restaurants, recreation centers, clubs or other activities that take place in the evenings or on weekends.)

• In total, does your downtown have more or less complementary businesses than the comparison communities?

• How concentrated is business activity in the downtown area compared to edge-of-town locations?


Step 2 – Supply Analysis (Quantitative Analysis)

Using the information gathered in Exhibit 12.4, we can now utilize this information to determine if there is an under or over supply of movie theaters in the trade area.

For each movie theater listed in step one above, confirm that there is a reasonable estimate of theater size in square feet. Square feet of space is often called gross leasable area (GLA). It can be estimated by actual measurement of a building's street-front width and estimate of its depth. In some communities, building square feet may be available in tax assessment records. In many cases, square feet can be estimated by simple observation and comparison with other stores. The Urban Land Institute's Dollars & Cents of Shopping Centers: 2002 provides information on store GLA statistics that can be used as a comparative benchmark.

Using the information collected in exhibit 12.4, total the square feet available and the number of screens for any of the categories of interest below. A blank worksheet is available in Appendix C.

Movie Theater Type Square Feet of Theaters in the Trade Area Number of Screens
1. First Run Desert Star Cinema, Lake Delton: 30,000* SF
Al Ringling Theatre, Baraboo: 11,500* SF
Bonham Theatre, Prairie du Sac: 7,500* SF

Total: 49,000 SF 15 screens
1 screen
3 screens

Total: 19 screens
2. Second Run None None
3. Independent/Foreign Al Ringling Shows Independent/Foreign films as part of a film series monthly (square feet counted above) None
4. Movie Theater & Restaurant Combination None None
5. Other Senior Center, Magnolia Lane: 1,000 SF*

Total: 1,000 SF 1 screen

Total: 1 screen
6. Total Trade Area Supply
Total 50,000 SF
Total: 20 screens
* Numbers are not accurate, but are used only to provide and example

Exhibit 12.5 – Estimating Supply

Now compare the number of square feet and number of screens of movie theaters in supply, to that of demand in the trade area. In the example above, the supply in the trade area is 50,000 square feet and 20 screens. The demand shows 12,618 square feet and 3 screens. In looking for an over or undersupply, our example shows an over supply of theatre space and screens. In comparing within specific categories, there is a gap in second run, independent/foreign and movie theatre and restaurant combinations. However, based on the clear over supply in the trade area, one should be cautious and seek out further research before considering these markets. Keep in mind, this is one factor to consider among many others we will examine in the Conclusion section.


Summarizing Supply

In examining the four steps above, write up your conclusions in paragraph form. Try using the questions in the above text in addition to those below as a guide:

• What is the distance from your downtown (in miles and minutes) of the competition?

• Are there gaps in the supply of movie theaters in the trade area? Generally, is there an under or over supply of movie theaters in the region? Is there an opportunity in a specific movie theater format like single or twin screens, multiplexes, first or second run theaters, independent/foreign theaters, combined movie theater/dining concept etc.

• How many screens are there per person in the trade area (a very general rule of thumb for first run theaters is 10,000 people per screen)? How does that rate with comparable communities in the trade area? Is the demand in the trade area adequately served by the supply?

• What are the strengths and weaknesses of the other movie theaters in the trade area? What can be learned from them, especially with regard to other successful downtown movie theaters? What elements of their downtowns are essential to the downtown’s vitality and the theater’s success? Are those elements shared by your downtown?

Possible Concepts

The business of owning and operating movie theaters can be complicated, but start with analyzing the supply and demand within the proposed trade area. From the work you have just completed, you have developed a wealth of information. Write up a summary of the potential for a movie theater in your downtown specifying a concept that could work in the current market. Use the following questions as well as the section summaries and information collected previously to develop a full and detailed report.

• What size and type of theater is under consideration for the location? Think in terms of square feet and number of screens. Consider a variety of concepts including combined movie and performing arts venue, a restaurant/movie theater combination, first run, second run or independent/foreign/classic film theater or other incarnation.

• Do certain concepts seem more appropriate than others in terms of catering to a certain demographic group based on their lifestyle characteristics, or where they are in their life stage?

• What results could be found in the consumer attitude survey? Is there a stated preference for a particular type of movie theater concept?

• Is there a specific concept to avoid due to proximity of competitors, an over-supply of theatres or other concerns?

Advanced Topic:
Analyzing Movie Theater Demand and Supply with GIS

The traditional role of GIS in demand and supply analysis is to find a suitable location for new movie theaters. In other words, GIS is used to analyze market characteristics (such as competitor locations, consumer demand, demographics, traffic counts, etc.) and search for an optimal new location.

However, conducting downtown market analysis means the potential new movie theater location is already known. Even so, GIS can still be used to analyze the feasibility of a downtown location in the context of the larger trade area. These types of GIS applications will contribute additional insight that may determine whether or not a locating a movie theater downtown makes good business sense.

If you are interested in the following techniques and do not have GIS expertise, consider contacting a consultant, planner or market data provider for technical assistance.

Using GIS to Visualize Demand and Supply Distribution

Knowing the geographic distributions of retail demand and supply is vital to understanding the market. Mapping these distributions will show concentrations of high and low demand and the location of potential competition. More importantly, mapping these distributions will show the relationships between demand and supply. For instance, do areas of high demand have a large number of nearby theaters or do gaps exist in the market? As GIS can overlay, or superimpose, different data sets onto one another, it is an ideal tool for exploring this relationship.

To map supply, use business addresses and plot existing retail locations in a given NAICS category. The NAICS category for movie theaters (except drive-ins) is 512131. Furthermore, the amount of consumer demand can be mapped using the demand calculations previously discussed in this section, or buy using data purchased from private data firms. Once mapped, the supply can be shown along with the retail demand distribution. The combination of this information on the same map creates a powerful visual tool that can be used to analyze the downtown market. If the location of movie theaters does not match the concentrations of consumer demand, a market gap may exist. If these gaps occur around a downtown or business district, the maps could show an opportunity for a new downtown theater location.

An example is shown in Exhibit 12.6. The GIS map shows the demand and supply conditions for movie theaters around Sauk City and Prairie du Sac, Wisconsin, two adjacent communities both with downtown districts. First, notice the supply of movie theatres, represented by yellow Stars. Prairie du Sac has a four-screen cinema downtown, the Bonham Theatre. Now, notice look at the consumer demand for movie theaters. We saw earlier that the average per capita spending is almost $40. The Bonham theatre is able to tap into considerable demand in its immediate vicinity, The competing theatre in Baraboo is a single screen and the next closest competitors (based on drive times) are the 15 screen multiplex in the Wisconsin Dells and several multiplexes on the west side of Madison, not shown on this map. The four screens located in downtown Prairie du Sac serves the community and is large enough to pull its audience from nearby towns. This map does not show a market gap for first run movie theaters; however, further examination of the types of theaters present may provide more understanding as to the type of programming available and if there is room for a more non-traditional movie theater concept.




Exhibit 12.6– Sauk City and Prairie du Sac, Wisconsin Movie Theater supply and demand


Appendix A – Demographic Analysis Worksheet

Trade Area Population State U.S.
Total Population
• Historical population growth rate/yr
• Projected 5-year population growth rate/yr
• Projected 10-year population growth rate/yr
Number of Households
Average Household Size
Percentage of Households with Children
Percentage of Population aged 10-24*
Percentage of Population aged 25-44*
Percentage of Population aged 45+*
Percentage of Population aged 55+*
Number of college students**
Per capita Income
Housing Starts – Current Year

Appendix B – Inventory of Existing Supply Worksheet

Theater 1 Theater 2 Theater 3
Name & Address of Movie Theater
(include zip code)
Total Square feet
Total number of screens
Drive time from downtown
Total number of seats
Types of Films o First Run
o Second Run
o Independent/Foreign
o Other o First Run
o Second Run
o Independent/Foreign
o Other o First Run
o Second Run
o Independent/Foreign
o Other
Movie theater used for public performances (describe)
Movie theater / Restaurant combination
Ticket Prices


Adults ______________

Youth (note age range): ___________________

Students: ___________

Seniors (note age range): _____________

Other Discounts: _____

___________________


Adults ______________

Youth (note age range): ___________________

Students: ___________

Seniors (note age range): _____________

Other Discounts: _____

___________________


Adults ______________

Youth (note age range): ___________________

Students: ___________

Seniors (note age range): _____________

Other Discounts: _____

___________________
Excessive Wait?
(Describe)


Stadium Seating?
Digital Sound?
Digital Projection?
Historic Movie theater?


Other rental opportunities? (describe)


Other unique features – atmosphere, reputation as a trendy spot, etc.



List complementary businesses within the downtown district (describe)



Appendix C – Calculating Supply in Square Feet and Number of Screens

Movie Theater Type Square Feet of Theaters in the Trade Area Number of Screens
7. First Run



8. Second Run



9. Independent/Foreign



10. Movie Theater & Restaurant Combination



11. Other



12. Total Trade Area Supply





About this Section

The Downtown and Business District Market Analysis guidebook is a collaborative effort between the University of Wisconsin - Extension (UWEX) and the Wisconsin Main Street Program of the Wisconsin Department of Commerce (Commerce).

This section was prepared by Teresa Gillotti of UWEX with assistance from Bill Ryan, Matt Kures and Ryan Ziegelbauer of UWEX. For questions, comments and suggestions, contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it




Michael Hurley
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Michael Hurley
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Re: Study about economic impact of theaters 07 Sep 2006 20:07 #13276

  • rotorjoc
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Thanks Mike,

Looks like a lot of information.

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