Block Booking System, Admission Price Discrimination, And The Formation Of Clearance And Zoning Boards

Since all theater had the same films, they focused on the quality of the theater as a form of differentiation (bigger and better screens, carpeting, emergency lights on floors, attractive marquees), while this was standard in the USA, this was new to Mexico

Film Noir came to be because of several aspects in the film industry like low budgets, low key lighting and self-indulgence. Going to the movies during the depression in the late 1920’s, was an escape from reality. Technology advancements like sound on film and Technicolor brought more people to the movies, increasing the number of movie theatres in the United States. Studios like Paramount saw the opportunity to make more money using Block Booking; a system that allows studios to sell “A-list films” with “B-list films” to independent theater companies. Studios were able to guarantee a profit from B-list films because they were being charged a flat rate with

To begin with, some background information on movies and Hollywood in the 1920’s. In the 1920’s, movie attendance soared (The Rise of Hollywood par. 4). As stated in the introduction, with the influx of money in the American economic system, the average person also had an influx of time on their hands. The normal solution was to spend that time on entertainment and movies were the perfect way to do that. By the mid-decade, movie attendance rose to fifty million and only increased from then. The five main movie studios were Warner Brothers, Paramount, MGM, RKO Radio Pictures, and 20th Century Fox (Dirks 1). Before these studios were formed, every aspect of making movies was separated into different companies. The aspects may include filming, editing, or distributing. With the spark of interest in movies, these five companies took it upon

On the concession side the bargaining power is weak due to economies of scale. Theaters earn most of their profits on concessions so they use their power to reduce their costs from their suppliers.

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

Hayes said the Code set up “high standards” for producers. He was the head of the Motion Picture Producers and Directors Association or MPPDA, a group of film companies under a trade association. The films the members of the MPPDA produced took about approximately 70 to 80 percent of all US films.

Although gangster films were a hit with the mainstream audiences, it wasn't with the Protestant and Catholic religious groups. This sparked the beginning of the new movie code, that would be introduced. In 1934 with the Movie Industry still plummeting, the Motion Picture Production code was put into action. The Code was founded in 1930 and was made to censor films and create guidelines for production studios to adhere to. The code was never carried out until 1934, when the Production Code Administration was founded. They required all films and even scripts, be pre approved before going to theaters.

picture cinemas still continued. By the 1970’s the movie industry, even with the fact of the rise

As the era of the “nickelodeons”, five-cent theaters popular in the 1910s, came to an end, the movie palaces spread

How did the Paramount decision of 1948 change the U.S. film industry? To what degree did the decision alter the way the industry did business?

The Motion Picture Production Code, commonly known as the Hays Code, was adopted in March 1930, though it was not truly enforced until four years later in 1934. This set of rules had tremendously influenced the way Hollywood movies were made for a number of years. This code was based on the ethics and norms if that time. There were three main principals of the Hays Code. The first was no picture shall be produced that will lower the moral standard of those who see it. What was meant by this was that sympathy should not be portrayed towards crimes, wrongdoings, evil or sins. The second stated that only a correct standard of living could be presented that are only subject to the requirements of drama and

Motion pictures are a key driver of the market for entertainment products, one of the largest export markets in US. Motion picture industry consists of three stages: studio production, distribution, and exhibition. The studios produce the lifeblood of the industry, the films that are its content. The biggest players at this level are the majors, big studios which integrate production and distribution, as do the slightly smaller mini-majors. The next stage is distribution. Distributors are the intermediaries between the studios and exhibitors. Distribution entails all steps following a film’s artistic completion including marketing, logistics, and administration. Distributors coordinate the manufacture and distribution of

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

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.

The five forces of competition of the movie rental industry presents little force against a competitor’s market position based on buyer power, supplier power, and new entrant threats. However, threat of substitutes and rivalry among competitors can affect the amount of profits a company will gain and retain.