Cineplex Inc. Risk Profile

The movie rental industry is a living industry; there are constant changes with advances in technology, rights management, and the slow, but steady, move away from physical Media. Companies such as Netflix, Hulu, RedBox, and Blockbuster are being forced to look at new business models and try to keep up with these changes.

Exhibitors can move toward a cost leadership strategy to compete on the lowest price in the industry. Implementing this strategy will allow the movie exhibitor’s to renegotiate the contracts with the studio producers to keep the movie theaters financially stable. Exhibitors should pursue a solution in lowering the percentage the production studios receive from the movie theater for ticket sales. In addition, these theaters should also seek a longer release window before movies become available

Currently in Canada there are no government regulations placed upon video and film making. The certification of Canadian films and videos is passed off to the Canadian National Film Board, which has been “charged with the duty of certifying on behalf of Her Majesty moving picture films, separate sound film track, filmstrips and slides, videotape and sound recordings — produced in Canada or produced abroad by persons normally resident in Canada as being of an international educational, scientific or cultural character”(Canadian Film Certification Regulations). Therefore, the only job of the Canadian National Film Board is to certify it a film classifies as Canadian, yet does not regulate its content or distribution. This follows the same pattern as many countries such as the United States, and the United Kingdom. If Canadian film and video was regulated by the government, certainly some regulations may affect its growth compared to other countries without regulations. While others would help guide the industry towards a new path of growth and success. Canadian films and videos have, historically, had a difficult time breaking into the industry. With our close neighbour the United States over taking all of the spotlight with their major motion pictures. “Given the longstanding difficulty Canadian-made feature films have had in penetrating Canadian movie theatres, television has been their most reliable means of distribution”(Gasher, Skinner, Lorimer, 2012,229). Certain Canadian government regulations on film and video could help change this unbalanced representation of film and video in Canada. Government regulations placed upon guaranteeing a certain amount of Canadian feature films playing in cinemas would greatly benefit our film and video industry. Currently “Hollywood is the dominant player in the

The motion picture is the main driving force of the entertainment market, one of the biggest export markets, the United States. Movie industry is divided into three stages: studio production, distribution, and exhibition. Movie studios, is the lifeblood of the industry. No matter the size of the studio, it is a product of integration and release. The next stage is the distribution. The distribution is an intermediary between studios and exhibitors. Configuration of distribution needs to complete all the steps of membrane, including marketing, logistics technology and management. The manufacture and exhibitors are coordinated by distributors. Finally, theater owners, control single screen cinemas in the local community the reuse of national chain. Exhibitors are not completely independent dealer's vertical integration, and the pursuit of their own profit maximization strategy. The three main source of enterprises income: concessions, advertising, at the box office. The exhibitors seek profit maximization sales tickets and discount. In general, revenues and profits limited control. Attendance can be profitable sales and advertising to make concessions, but there are significant coupon limit per capita sales, sales price seems to have reached a maximum value. Advertising revenue and profits is still attractive avenue, but the audience hate.

In a highly competitive industry there can be many inherent risk factors embedded in a company. Two factors that would affect audit planning decisions could be complex valuation issues and related party transactions. Valuation issues may lead the audit team to request more

12-9: According to AU 240, auditors should exercise professional skepticism during the audit and discuss the risks of material misstatement due to fraud (Wells, 2013, p. 330). The auditor should also discuss the implications of the audit with the appropriate level of management. Finally, the auditor should obtain sufficient evidence to determine if material fraud exists and what the impact on the actual financial statements is (Wells, 2013, pp.

The strategy of Cinemark is to expand its services as far as the company can by building new facilities, remodeling existing theaters and acquiring other theaters of the competence. That is how Cinemark becomes the largest movie theatre company in Brazil and Argentina and the third largest movie theatre company in the United States. The company operates in two segments which are united states and international. The second one operates principally in South American and Central America. According to the Form 10-k, the company has neither divisions by region nor divisions at all, yet the firm has a COO (Timothy warner) as it is indicate in the appendix. The company has around 16,500 employees in the United States., and just 22% of them are full-time employees and the 78% left are part-time employees. Cinemark also has a nearly 8,000 employees in its international markets in which 30% of them are full-time employees and approximately 70% of them are part-time employees.

The motion picture industry is a competitive business. More than 50 studios produce a total of 300 to 400 new motion pictures each year, and the financial success of each motion picture varies considerably. The opening weekend gross sales ($millions), the total gross sales ($millions), the number of theaters the movie was shown in, and the number of weeks the motion picture was in the top 60 for gross sales are common variables used to measure the

The audit risk model has provided a conceptual framework for auditing practice for more than 40 years. Despite practical difficulties in implementation and criticisms of its theoretical foundation, the model has been fairly effective in helping auditors analyze risks and use that analysis to determine the nature, timing, and extent of audit procedures (especially substantive procedures) in audits of financial statements. The audit risk model provides a conceptual framework for the risk assessment standards.

Business external environment can be affected by several factors some of which include threat of new entrants, threat of substitutes, bargaining power of buyers, intensity of rivals, bargaining power of suppliers as well as industries that affect each other indirectly (Petho 146). These in turn affects the organization’s market competitiveness and profitability. Focusing these forces to Imax, they manifest that the biggest challenge to new market entrant is the high initial capital and the extent of industrial knowledge. Regarding distribution channels, Imax has successfully partnered with cinemas worldwide, which has enabled it to showcase its films.

They have allowed for smaller filmmakers and less viewed genres to gain some recognition, in addition to promoting adaptation in the industry to the new technologies available. Magnolia Pictures, 2929 Entertainment, and Landmark theatres have a questionable collective future in the industry. Even with Cuban’s financial backing, they can only loose so much of the share of the market before they become irrelevant. I hope that research will continue to look at the impact of technologies and marketing in order to understand what goes on in the film industry. Consumers have choices, and the best way to make changes is by understanding the structure and the power we have in

The movie theater industry is highly competitive, both within the film entertainment industry (as with Netflix and pirated films) and with substitute goods, such as live performances, restaurants, and sporting events. In

In 2007 movie theater attendance was 1,400 million with the average ticket price at about $6.88. The film industry is highly competitive however, there are only a limited number of large format film companies. As a large format film company, IMAX is currently faced with two strategic decisions of whether they will lose their differentiation if they exhibit too many Hollywood movies, and whether the company is too small to survive on its own and in turn should be sold to a larger studio. In an attempt to identify what steps IMAX should take to ensure their future stability, an analysis of the company’s internal and external environment will be conducted. Potential options and alternatives as well as recommendations and suggestions for implementation will be discussed.

exhibitors sought to avenge a dismal prior year at the box office. Domestic box office

Purpose – The authors posit that audit fees are driven by historical risk factors and risk encountered