However, the advent of technology and alternatives chasing the entertainment dollar has meant cinemas have an extremely competitive environment in which to generate revenue and be profitable. Also, with new technology has come lower cost. This started with VHS and DVD and now streaming via the web is incredibly popular. By comparison, it is reasonably expensive to have a family outing at the movies.
But there is nothing like seeing a blockbuster on the big screen and the cinemas tend to have first access to new releases. Therefore, it is in these two factors that cinemas have twin compelling business case and points of difference.
However, the potency of the business case is tenuous when compared to viewing the movie in the comfort of your own home. The secret is to have customers enjoy the experience of a night out more than staying at home, that way, theatre operators can maximise revenue from food, drink and advertising.
The risk for cinemas is the situation where the experience either doesn't match expectations or patrons degrade the experience for others. I think we all have experienced these at one time or another.
You tend to miss the first third of the movie for struggling to hear dialogue in a theatre because of the din created by scrunching of popcorn bags (whatever happened to cardboard "cups"?). And when Batman and Superman are beating the snot out of one another, the absolute last thing you want to hear is a crying baby (perhaps bring in special screenings for parents?).
Finally, the classic 'Oh, I forgot to switch off my mobile phone", and patrons texting and surfing invokes feelings that you'd like to don a cape and a mask and deliver some "justice" on behalf of the others in the audience (perhaps a policy to eject rude patrons?).
In spite of the above, I will be back, because they are minor impediments to the enjoyment which comes from viewing a blockbuster movie on the big screen with the volume up. Watching movies at home or on a device just isn't the same.
-Balance Consulting is a Whanganui consultancy specialising in business strategy, process excellence and leadership mentoring - contact Russell on 021 2442421 or John Taylor on 027 4995872.