Technological change and managerial challenges in the movie theater industry

Charles B. Weinberg (), Cord Otten (), Barak Orbach (), Jordi Mckenzie, Ricard Gil, Darlene C. Chisholm () and Suman Basuroy ()
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Charles B. Weinberg: University of British Columbia
Cord Otten: University of Hamburg
Barak Orbach: The University of Arizona
Darlene C. Chisholm: Suffolk University
Suman Basuroy: University of Texas at San Antonio

Journal of Cultural Economics, 2021, vol. 45, issue 2, No 4, 239-262

Abstract: Abstract The recent rise of digital technology in the delivery of entertainment casts doubt among industry stakeholders on whether movie theaters will continue to be the primary channel of the release of motion pictures. Despite the growth of competing outlets due to the spread of digitalization, we argue that the movie theater industry may benefit from digital technologies as well. Enhancing the cinemagoing experience, better matching of the cinemagoing experience to consumer preferences, and improving capacity utilization are crucial if movie theaters are to continue having a pivotal role in the distribution of filmed entertainment. In particular, our data analysis demonstrates that the use of new digital technologies and “big data” may be one way to turn the current threats into future opportunities for movie exhibitors. Therefore, managerial strategies that aim to raise the value proposition of theaters by enhancing the cinemagoing experience, and that boost adaptability to rapidly changing consumer preferences about how and when they view filmed entertainment, ought to be studied and implemented.

Keywords: Movies; Theaters; Exhibitors; Technological change; Digitalization; Big data; Filmed entertainment; Product differentiation (search for similar items in EconPapers)
JEL-codes: D22 D43 L13 L21 L82 Z10 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10824-019-09374-z

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