Technological change and managerial challenges in the movie theater industry

Charles B. Weinberg, Cord Otten, Barak Orbach, Jordi McKenzie, Richard Gil, Darlene C. Chisholm, Suman Basuroy

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)239-262
Number of pages24
JournalJournal of Cultural Economics
Volume45
Issue number2
Early online date6 Jan 2020
DOIs
Publication statusPublished - Jun 2021

Keywords

  • Big data
  • Digitalization
  • Exhibitors
  • Filmed entertainment
  • Movies
  • Product differentiation
  • Technological change
  • Theaters

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