Analyzing Figures : Opening Gross Income

EdgeMark Cinemas are a chain of movie theaters located in 37 states with 475 theaters in those states covering the west coast, east coast, and Midwest. EdgeMark’s profits, like other cinemas, have been in a small but constant decline over the last 12 years. Industry Wide Average of 2.05% ticket sales decline per year for the last 12 years also, when adjusted for inflation, revenue has dropped an average of 1% a year for the past 12 years (Domestic Movie Theatrical Market Summary, 2015). The chain is currently looking to increase ticket sales, loyal customers, and profits by adding additional products and services.

2. What forces are driving changes in the movie rental industry? Are the combined impacts of these driving forces likely to be favorable or unfavorable in term of their effects on competitive intensity and future industry profitability?

My analysis will cover competition from substitutes and the change in buyer behavior and demographics. I will use the five forces model of competition and a SWOT analysis along with other sources of analysis. The information and recommendations that follow will provide you with the insight and building blocks to compete in the movie exhibition industry.

By mid 2002, the company had 349 screens in 31 locations and had generated a reported compound annual rate of return well in excess of 20% for its initial investors. 2-for-1 Wednesdays In the spring of 2001, Cinemex’s competitors began offering a special deal: any customer who purchased a ticket to see a film on a Wednesday (traditionally a slow day at the box office) would receive a second ticket at no additional charge. This ploy cut into Cinemex’s attendance figures (Exhibit 3). On five of the first six Wednesdays after the deal’s introduction, Cinemex’s attendance was less than in the same week during the previous year. Heyman faced a difficult decision. Should he offer his own two-for-one deal on Wednesdays? This might raise attendance, but since many tickets would be given away for free, it might also reduce ticket revenues. Or should he do nothing, hoping that the appeal of Cinemex’s customer service package would eventually bring customers back? Heyman’s first step was to review his attendance data. What made this difficult was that week-to-week attendance was highly variable, depending on (among other things) the time of year, the popularity of current films, local weather conditions, and the timing of holidays. The question was how to disentangle the impact of these factors from those of Wednesdays at Cinemex Page 2

4. Give the mean for the median column of the Worksheet. Is this estimate centered about the parameter of interest (the parameter of interest is the answer for the mean in question 2)

The mean for the median column of the worksheet is 3.6Yes, the estimate is centered about the parameter of interest.

4. Din, Yangon. (2007). Titled: The dynamics of the movie industry: Theatrical Exhibitions & DVD rentals. The University of Wisconsin.

5. When is it more appropriate to use the median as a measure of center rather than the mean? Why?

The poor distribution of Australian films has made it difficult for the public to view these said films, due to the lack of theatres screening the actual pictures. This contributes to the community of the Australian public to collectively be unaware of these films and leads to the small number of tickets sold in cinemas. With this lack of money being spent on Australian films, the industry suffers due to with no return going into the

Competition between theaters often comes down to distance from home, convenience of parking and proximity of restaurants. Innovations by one theater chain are quickly adopted by others. The differing approaches of the theater chain companies are reflected in their cost of fixed assets per screen.

2. What forces are driving changes in the movie rental industry? Are the combined impacts of these driving forces likely to be favorable or unfavorable in term of their effects on competitive intensity and future industry profitability?

To provide an analysis and make recommendations to increase revenue in the movie exhibition industry.

The costs, methods of distribution, and themes of Hollywood and Nollywood films reflect strongly their target audiences; how the target audience affects the production of a film and how the production of a movie is designed to capture a specific

Based on the chart, the mean was calculated by adding up the sum of the list and divide 18, which the number of the total listed prices. The mean is 135,000, which mean the average of the listed price. Secondly, the median was calculated by listing the number in numerical order from lowest to highest and located the number in the middle 126,000. The median represents the middle number of the listed price. After calculating the median I located the minimum and maximum based the lowest and highest data, which are 48,000 and 338,000. These represent the range of the listed price. Lastly, I used the formula to get the

Determining the mean and the median of the checking accounts for Century National Bank, we are trying to find the single value that will represent all 60 checking accounts in our sample. That single value will be measure of central tendency.