The Domestic Box Office Gross Receipts Counted

There are basically six technology-driven threats to the traditional rental model: (1) Cable companies offering Video on Demand (VOD), (2) online movie downloads, (3) online movie rentals, (4) disposable DVDs, (5) illegal movie downloads and DVD copying, and (6) Digital (or Personal) video recorders (DVR). (Jackson) One could also consider traditional pay-per-view (PPV) as and additional substitute. Only one of these seven, online movie rentals has proven to be a major competitive substitute for traditional movie rentals. All other areas, except traditional pay-per-view are expanding rapidly, but some face significant challenges.

Modern technology isn't disappearing and the need for movie theaters will continuously decline. If movie theater owners take the time to examine several of these options they will certainly find one that functions for them and begin to earn a revenue that is truly theirs.

The Canadian entertainment industry that is served by Cineplex has been recording sustained growth since 2011 where a growth of 5 percent was recorded. PwC’s Global Entertainment and Media Outlook for 2014-2018 (PWC, 2014) indicate that the industry is set for a take-off. The industry has a

Occasionally, people use to go out and rent DVD’s to watch a specific movie from rental stores. Advancement in technology has brought a sufficient change in customer’s behaviors, today DVD rental stores have almost gone. Moreover, by time we saw enormous increase in channels being provided by cable providers, but today even that has been replaced by streaming media devices, thus my time, role of cable providers might also disappear due to the introduction of devices such as Netflix, Apple TV etc. “DVD sales have also been hit. The Los Angeles-based Digital Entertainment Group estimates DVD sales in 2008 fell 8% to $21.6 billion from a year earlier, while DVD rentals were flat.” Charny, Ben. "Viewers Tap Free Web Content." Wall Street Journal, Eastern

| THREATS * Weather * Competing forms of entertainment – video games, other sports, movies, jobs * Consumer loyalty for competitors * Demand fluctuation * Revenue lower than projections * Underestimated costs

Retail spending on discs remained strong, indicating that physical and digital formats will continue to coexist in the marketplace. While overall disc unit sales were down 6 percent form the previous year, sales of movies and TV shows on Blu-ray continued to offset the decline in DVD sales. Sales of Blu-ray disc grew by 7 percent and accounted for 20 percent of total disc sales, up from 18 percent the previous year (Consumer Report 2013)

According to the Recording Industry Association of America (RIAA), 30 billion songs were illegally downloaded between 2004 and 2009. Even with sites like iTunes and Rhapsody offering legal downloads, peer-to-peer file sharing still exists. Illegally downloading music has had a significant impact on the music industry resulting in a loss of profits and jobs, and changing how music is delivered to the masses. (Adkins, n.d.) Showing that even having the ethically correct option P2P sharing of illegal media is still thriving. The RIAA reports that music sales in the United States have dropped

Though the projections for the fall quarter look promising the resurge us of books and CD’s is unlikely. Recent reports have sales of books falling as much as 34% over last year and the increase of eBooks over 300%. (Wolman, 2011) It also has CD sales being cut in half over the past decade. The rise of people buying digital music and streaming music is significant.

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

Concession sales and ticket sales are the two biggest sources of revenue for a movie theater but the exhibitors has limited control over both revenues and profits because those two are important aspects. Attendance allows for profitable sales of concessions and advertisements, but there are significant caps on the volume of concession sales per person, and selling price seem to have reached a maximum. Both continue to increase in cost to the consumers and may have reached a price point that is starting to drive consumers away from going to see a movie.

With the advances in technology and increase in internet broadband availability (The Broadband Commision, 2014), record labels are being forces to innovate and update their business models (M.Coz & Torres, 2013) to keep up with the latest technology (Solis, 2015). Of these technologies, the move away from physical sales (of music) to Digital sales is the most significant. Digital sales have increased over the last 6 years (as shown in Table 1) in terms of revenues, and this is set to carry on this way in the future (Solis, 2015).

Ticket sales for movie theaters are at their lowest point since 1996. With the core demographic group expected to grow slower than the US population and with technological advances growing at speeds faster than the industry can keep up, ticket sales will continue to decline if the current business strategy continues to be followed.

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

Things like Last Fm, Spotify etc will change things even more - Spotify is a kinda terrifying prospect from a label perspective but as a consumer it sounds very interesting.

Before the advent of movie rental stores, to watch a new movie, people had to go to theatres or cinemas spending a lot of money. Video rental was the answer to the new needs. Since the 90s, video rental industry has become a very big business; in those years, rental prices rose as more and more people began renting movies. At the same time, new players entered the market creating strong competition inside the industry. In the last years, the field of home entertainment has changed dramatically because of the presence of Internet and new technologies (Recorded DVD & Video in the United States, 2009).