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survey on decline in tik sales 11 Jan 2007 20:03 #14284

  • Mike
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Movie Attendance Linked to Theater Experience, Increased Competition for Consumer Time, According to PA Consulting Group Survey



Results Questions Need for Hollywood, Theater Operators to Rethink Current
Economic Models

LOS ANGELES, Jan. 4 /PRNewswire/ -- The global decline in movie theater
attendance is not a result of unappealing content, but rather reflects a
dissatisfaction with the movie-going experience and increasing competition
for the consumer's share of time and money, this according to a global
survey of consumers conducted by PA Consulting Group and the Motion Picture
Association of America. The survey also revealed that while
consumer-spending habits will not undergo any fundamental changes over the
next five years, movie attendance and home entertainment sales, including
the sales of DVDs, will decline as entertainment options increase.
The premise of this survey, which was completed by 2,028 respondents
who filled out structured questionnaires in the presence of a poll-taker in
seven American and three European cities, was to identify causal factors
leading to declines in theatrical movie attendance, DVD rentals and sales,
and other forms of filmed entertainment. Unlike the majority of surveys
that attempt to link how the perception of the content Hollywood is
releasing to movie ticket sales, this survey sought to uncover how
Hollywood's 'share of wallet' compares to other forms of leisure and
entertainment. It also looked at other factors which are influencing the
decline in theater attendance, irrespective of content.
According to the survey, 83% of those who responded stated that they
are at least content with the overall quality and substance of the films
being distributed by the studios, a notion that runs contrary to the
predominant mindset of many in Hollywood. Furthermore, 73% of respondents
in the US and 68% in Europe plan to spend the same amount of time going to
the movies. Despite this affirmation of the quality of the product
Hollywood is releasing, 60% of those surveyed who stated that they spend
"very much" of their income on movies plan on decreasing their consumption.
The survey exposed several factors that consumers view as contributors
to the decline in movie theater attendance. For example, 86% of all
respondents stated that they would attend a movie at a theater if ticket
prices were reduced substantially. Furthermore, 62% of all respondents
indicated that they would be more likely to attend a movie if they had the
option of reserved seating. Additionally, 63% said they would be more
likely to attend a movie if outside food were available beyond popcorn and
traditional movie theater fare.
"This research reveals that Hollywood should reconsider how the movie-
going experience is sold to the consumer," said Mike Hunter, a member of PA
Consulting Group's management team. "We may be at a time when going to the
movies should be more than just buying a ticket, purchasing an item from
concessions, watching a film, and then going home. We may be entering an
era where consumers want the movie-going experience to be more of an event
rather than an occurrence."
When asked what drives them to attend a movie in the theater, the
survey's findings show that people are mainly influenced by the content of
the film (93%), followed by the opinions of friends and family (90%), the
cost of the ticket (87%), the appearance of highly recognizable movie stars
(82%), movie reviews (79%) and box office results (78%).
While theater attendance is expected to decrease over the next five
years, studios can expect to see mixed results from another revenue stream,
that of DVD rentals and sales. Generally, consumers intend to continue
their past and current allocation of income to DVD rentals and purchases.
However, among those who spend a significant amount of money on DVD rentals
and sales, 66% and 58%, respectively, plan on reducing their spending.
While the results of the survey indicated that the amount spent on DVD
rentals and sales will be flat, the same cannot be said if the prices of
DVD rentals were to increase. In the event that the price of DVD rentals
was to increase, 77% of those interviewed said that they would be more
likely to watch a movie in the theater rather than rent.
According to Mr. Hunter, "In order for it to maintain sustainable
growth, the entertainment industry must take a long look at how consumers
are balancing their lives. Survey respondents have shown that they intend
to increase the time spent on socializing, using the Internet and
participating in other leisure activities aside from going to the movies
and watching DVDs and TV." He added, "the only categories surveyed where
results were flat was in those pertaining to movie attendance and watching
DVDs and TV. Therefore, it is imperative for Hollywood to find alternative
channels that play to the changing lifestyles and work/life balance of its
customers."
The results of the survey were revealed during an executive breakfast
forum co-sponsored by the Motion Picture Association of America (MPAA) and
featuring guest speakers Mike Arrieta, Senior Vice President, Digital, Sony
Pictures Entertainment and Dean Garfield, Executive Vice President of
Business Development at the MPAA.
Methodology
In an attempt to mitigate the inherent biases of surveys conducted
online, PA Consulting Group conducted face to face interviews with
respondents over a six week period in seven cities in the US (Boston,
Denver, Houston, Los Angeles, New York, and Washington DC) and three
European cities (Copenhagen, Frankfurt, and London).
Surveyors interviewed passers-by on the street, asking them questions
off of a structured questionnaire which included multiple choice,
closed-ended questions. Responses to the survey were gathered near a movie
theater, though not directly either in front of one, or in a shopping mall.
Survey respondents were not asked whether they were headed to or coming
from a theater.
The questionnaire featured multiple-choice, closed questions, though
the surveyor had the option of asking follow-up questions, which were noted
on the questionnaire. Completed questionnaires were returned to PA for
analysis.
For additional information related to the survey findings, or to obtain
a copy of the report, please contact Scott Behringer at 213-486-4848 or
Sarah Bergin at 571-227-9824.
About PA Consulting Group
PA Consulting Group is a leading management, systems and technology
consulting firm. Operating worldwide in more than 35 countries, PA draws on
the knowledge and experience of 3,000 people, whose skills extend from the
initial generation of ideas, insights and solutions all the way through to
detailed implementation. This benefits-driven approach is founded on our
strength in innovation, our responsiveness to our clients' needs, and our
unyielding focus on delivery. All of our work and support is based on deep
sector insight and expertise, and we work across the private and public
sectors, with particular strengths in financial services, energy, life
sciences & healthcare, government & public services, manufacturing, defense
and telecommunications.


Michael Hurley
Impresario
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Re: survey on decline in tik sales 11 Jan 2007 21:09 #14285

  • slapintheface
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2006 ticket sales were up ..........people love to be negative!
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Re: survey on decline in tik sales 11 Jan 2007 21:35 #14286

  • leeler
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but admissions have been down for several years. 2006 data isn't available yet, but here is the stats for years prior.....
http://www.natoonline.org/statisticsadmissions.htm

2005 1.40
2004 1.53
2003 1.57
2002 1.63
2001 1.49
2000 1.42
1999 1.47
1998 1.48
1997 1.39
1996 1.34
1995 1.26
1994 1.29
1993 1.24
1992 1.17
1991 1.14
1990 1.19
1989 1.26
1988 1.08
1987 1.09

[This message has been edited by leeler (edited January 11, 2007).]
"What a crazy business"
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Re: survey on decline in tik sales 11 Jan 2007 23:07 #14287

  • sevstar
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I have always watched admissions (butt's in seats) as the best way to calculate this business.

And the pricing complaint has always been around. You name the product and there is a majority complaining about the price. I always figured. If price was the big factor I always hear. I would be packing the house during matinee's and bargain nights.

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Re: survey on decline in tik sales 12 Jan 2007 03:33 #14288

  • jacker5
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It is not the price of the ticket or content it is just the American person is overworked and tired.
Your average person is no longer 9-5 Mon-Friday.
Jobs now are 24 hours 7 days a week. Not saying people are working all those hours but people are working overtime and there days off.
Why? Because of low wages and low retirement funds. Any everything is so expensive!
There is no more time for vacations, weekends and movies!
Sad to say but that has a large contribution to the decline of ticket sales at theater!
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Re: survey on decline in tik sales 12 Jan 2007 09:28 #14289

  • slapintheface
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True ticket sales were down in 05 and 04 but they still were in the top 5 years in movie history!
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Re: survey on decline in tik sales 16 Jan 2007 02:41 #14290

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<BLOCKQUOTE><font size="1" face="Verdana, Arial, helvetica">quote:</font><HR>Originally posted by Mike's article:
<B>
"We may be at a time when going to the
movies should be more than just buying a ticket, purchasing an item from
concessions, watching a film, and then going home. We may be entering an
era where consumers want the movie-going experience to be more of an event
rather than an occurrence."
</B><HR></BLOCKQUOTE>

I could not agree more. Other surveys have mirrored the fact that people don't like being herded in and out of a movie like cattle. We need to be thiking hard of ways to add value to the movie-going experience, such as adding an indoor restaurant, live introductions, sponsored trivia contests instead of on-screen advertising, holding special events, have a theater mascot greet customers, etc. I hear a lot of theater owners complain when ticket sales decrease, but we need to realize that it's OUR business and we are the only ones who can take responsibility for it's successes and failures.
"In a place like this, the magic is all around you. The trick is to see it." -Martin Landau
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Re: survey on decline in tik sales 16 Jan 2007 15:01 #14291

  • rodeojack
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That's probably why many of us who own drive-ins have seen constant growth over the past few years.

For a long time, I've felt that an evening out here should be marketed as an event, since the days of weekly attendance are long gone.

People may not go to the show every week, but if they feel they got their money's worth when they do go, they won't worry so much about what they spend when they do.

When I go to the local steakhouse, I don't worry about what the steak is going to cost me. I knew it would be spendy before I got into the car, but I looked forward to the experience. It's the same when I go watch a Mariners game. I know the beer will cost me $6 or $8, but I do it anyway, because it's part of the experience. I enjoyed it all, and the beer was pretty good... and now I get to grumble (good naturedly) that I got plundered at the baseball game!


We don't have the newest place out there, but we put a lot into our show and our food. It must be working, because the lines are long... both at the boxoffice and the snackbar (Philly Cheese Steak, anyone?).
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Re: survey on decline in tik sales 16 Jan 2007 16:52 #14292

  • Cinemateer
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Exactly, Jack. I believe that attendance is up for quality drive-ins like yours (I've been there) because it's a unique and fun experience different than any other shoebox theater or drive-in. And your unique menu items surely contribute to your long lines. Besides your Philly Cheesesteak sandwiches, has anyone else offered a Pizza Dog? MMmmmmmmm...
"In a place like this, the magic is all around you. The trick is to see it." -Martin Landau
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Re: survey on decline in tik sales 16 Jan 2007 20:08 #14293

  • rodeojack
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has anyone else offered a Pizza Dog?

Yah... I forgot about that! MMMmmmmmm!!
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Re: survey on decline in tik sales 28 Jan 2007 07:35 #14294

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Pizza Dog? What is it?
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Re: survey on decline in tik sales 28 Jan 2007 08:30 #14295

  • slapintheface
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i love pizza dogs......#1 thing i bought when we still had a drive in ..........
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Re: survey on decline in tik sales 28 Jan 2007 13:06 #14296

  • Cinemateer
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Editor, it's basically a hot dog with pizza toppings on it. Tomato sauce, cheese, variety of meats, etc.
"In a place like this, the magic is all around you. The trick is to see it." -Martin Landau
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Re: survey on decline in tik sales 28 Jan 2007 14:07 #14297

  • rodeojack
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Cinemateer has it right. It's one of two ideas we kept from the old ownership, back 20 years ago. The other was a single refill on our large popcorn tub (we now have 2 poppers in the place because of that!).

A pizza dog is an item that's almost impossible to present well, though it tastes pretty good... especially with the hot dogs we have. I never cared much for how it looked going over the counter, and 2 years after we took the place over, I dropped it from the menu.

Our regulars kept ordering it, so I raised the price... a bunch! Not one complaint... and they still ordered the darn thing.

So... I gave up and put it back on the menu. It looks as strange as ever... and we made over 300 of them last year.
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Re: survey on decline in tik sales 02 Feb 2007 16:44 #14298

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Is it served in a boat no/bun or in a bun. Can customers customize it like a Subway sandwich or do you have a standard?
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