Reimagining the Future of Cinemas

in the Streaming Era

CineFuture
The Jungle Book
Our understanding of the situation

• Declining Attendance: CineFuture has experienced a significant drop in monthly cinema attendance, with a 30% decline
over the past five years, indicating a substantial shift in consumer behavior and preferences.

• Streaming Competition: The rise of streaming services like Netflix, Amazon Prime, Disney+, and HBO Max has
provided consumers with a convenient and diverse at-home viewing experience, which has further eroded cinema foot
traffic and revenue.

• Changing Consumer Preferences: Younger audiences are increasingly seeking digital experiences and often perceive
traditional cinema offerings as outdated. This demographic shift necessitates a reimagining of the cinema experience to
align with modern expectations.

• Cost Pressures: High operational costs, including expenses related to real estate, staff, and maintenance, are putting
significant pressure on CineFuture’s profit margins, making it crucial to find cost-effective solutions and optimize
operations.

• Technological Advancements: Rapid advancements in home entertainment technology, such as 4K TVs and surround
sound systems, have made at-home viewing experiences highly appealing, posing a direct threat to the traditional cinema
model.
Compared to movies released, attendance is growing at a faster pace reaching
close to pre-COVID levels…..
MARKET OVERVIEW

The average ticket prices have been mostly uniform with a There has been a recovery in the number of movies released
sudden rise seen 2020 onwards since 2020 but still, there is a long way to go
Ticket Prices for Major Player (2014-22) Number of Movies Released in NA (2000-22)
12.00 900
11.00 800
10.00 700
9.00 600
500
8.00
400
7.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 300
00 02 04 06 08 10 12 14 16 18 20 22
AMC Cinemark Cineplex Model Average 20 20 20 20 20 20 20 20 20 20 20 20
Even though the attendance dipped in 2020 owing to COVID- With millennials visiting theatre 10 or more times the
19, it has almost grown to pre-covid levels in 2023 maximum, it becomes a significant segment to target
Attendance by Cinemas in the US Number of times of watching movies in theatre by age group
300 100%
250 Did not go to a
80% movie theater in
200
60% the past month
150 1-2 times
100 40% 3-4 times
50 5-9 times
20%
0 10 or more
2015 2016 2017 2018 2019 2020 2021 2022 2023 0%
1997-2012 1981-1996 1965-1980 1946-1964
ACN Cineworld Cinemark Cineplex Kinepolis
…..and this can be attributed to the theatrical experience that is attracting the
audience
MARKET OVERVIEW

Approximately 49% of Canadians who watch >5 movies/year Even though Cast is a significant factor still, 40% respondents
tend to visit the theatre for experience out of 2200 visit theatre for effects & visuals
% of moviegoers by experience type (2022) Reasons for visiting a theatre to watch a movie
100% 12 Studio/distributor
14 14
80%
32 36 35 Social Influencers
60%
40% Director/filmmaker
54 52 51
20%
Visual/effects
0%
1 Movie a yr 2-4 Movies a yr >5 Movies a yr
Cast
Movie Driven Equal Theatre Experience -10% 0% 10% 20% 30% 40% 50% 60%

With most of the people preferring movie quality, there’s a Action & Sci-Fi being the top genre indicates that experience is
significant % of people watching movies for the experience an important factor for people going to theatres
Watching a movie on opening weekend Genre of movies preferred by theatre goers
Avoiding spoilers
30%
39% 37%
It features IP I enjoy/am familiar with 15% 30%
17% 15% 14% 12% 10%
0% 3%
Theatrical experience
on Fi rro
r
en
t
ily ed
y a
ag
e
ar
y
cti ci- o d m ra
m u en
t
A S H pe
n Fa om D g
Genre d e C lan u m
/In se oc
e er D
s iv
Movie Quality hou D
0% 5% 10%15%20%25%30%35%40%45%50% rt
A
The Prime Pass not only competes with the streaming competitors but also
solves the reduces the cost pressures through increased revenue
TRANSFORMATION STRATEGIES

1 2
Defining the Solution Implementation
• Premium Subscription model • Pilot Phase (6 months): Roll out in 20 cinemas, monitor
• Monthly cinema subscription: 4 movies feedback, refine booking
• Subscription price: $23 (equal to premium Netflix subscription) • Marketing Strategy: Digital campaigns, local influencers, social
• Premium seats, booked online or at cinema if available media promotions
• Technology Integration: Seamless booking, personalized
notifications for subscribers

3 4
Long Term Plan Benefit to the company
• Create a habit of regular cinema visits & build long-term customer relationships • Customer Retention: Encourages regular visits, forming a movie-
• Gradual increase in subscription price as demand & loyalty grow going habit
• Introduce tiered pricing for different levels of premium experiences • Revenue Stability: Predictable monthly income stream
• Potential to expand to more cinemas if successful • Competitive Pricing: Attractive price point compared to streaming
services
Mixing events with cinema caters to the changing customer preferences by
attracting youth as well as the target audience - millennials
TRANSFORMATION STRATEGIES

1 2
Defining the Solution Implementation
• Leveraging event cinema & niche programming for unique • Partner for streaming concerts, sports, live performances
experiences that go beyond traditional movie screenings • Organize live gaming sessions, such as Dungeons & Dragons,
• Targets specific audience with specialized content such as where audiences can participate or watch
classic film nights, themed events & exclusive indie film • Provide incentives such as free popcorn for themed attire
screenings like "pajamas and popcorn", exclusive movie merch to
audience during the day of release

3 4
Long Term Plan Benefit to the company
• Annual calendar: live streams, themed nights, special promotions • Increased Attendance: Unique events boost attendance, foot
• Build community ties: local events, support artists, filmmakers traffic, ticket sales
• Enhance loyalty programs: reward frequent visitors, early event access • Streaming Competition: Exclusive content differentiates from
streaming competitors, builds brand identity
• Diverse Revenue Streams: Create multiple revenue streams
beyond movie ticket sales, enhancing financial stability
An experiential environment creates a wholesome experience for the consumer
while enabling higher revenues
TRANSFORMATION STRATEGIES

1 2
Defining the Solution Implementation
Experiential Solution (Fun Zone): Experiential Solution (Fun Zone):
• Lease space to third-party operators for fun zone activities • Identify operators, negotiate lease, finalize agreements
• Position cinema as a recreational destination beyond movies • Install equipment, set up activities, launch marketing
Cloud Kitchen: Cloud Kitchen:
• Utilize available kitchen space for cloud kitchen setup • Assess space, equipment needs
• Install equipment, train staff

3 4
Long Term Plan Benefit to the company
• Expansion & Optimization: Evaluate, expand successful initiatives, optimize • Increased Foot Traffic: Fun zone attracts families, boosts cinema
operations attendance
• Innovation & Adaptation: Stay updated on trends, enhance entertainment & dining • Diversified Revenue: Leasing fun zone, operating cloud kitchen
• Partnerships & Collaborations: Forge strategic alliances to enhance offerings, diversifies income
attract new customers • Enhanced Experience: Interactive activities, quality food foster
customer loyalty
The only issue that might be causing CineFuture to not to leverage the
advantage of increasing attendance is “Providing Experience to the Customers”
CONCLUSION
Current Scenario
Ticket sales are approaching
pre-pandemic levels despite
Movie theater fewer releases
attendance
Millenials visit theaters more
frequently, averaging over 5
visits per year. They are the
Target audience segment that theaters
Audience should prioritize
Movie theaters are now
experience providers. To attract
more audiences, approach should
Experience focus on enhancing overall
experience
is king
Possible Solutions
Increases customer loyalty and
encourages frequent visits. Offers
a stable revenue stream through
Cinema subscription fees.
Pass
Attracts diverse audiences with
unique experiences like themed
nights, live streams, and
interactive events. Boosts
Special
attendance and creates
Events
memorable experiences.
Enhances the overall cinema
experience. Appeals to younger
audiences and increases dwell
time, leading to higher
Fun Zone
concession sales.
Future Outlook
Scale successful initiatives across
all locations to maximize impact
Implement in and revenue
All Theaters
Ensure the pass is affordable and
not limited to premium customers
to encourage wider adoption
Prime Pass
Access
Continuously integrate cutting-
edge technology to provide
Advances in superior audio-visual experiences
and stay ahead of home
Immersive
Technology entertainment systems
Appendix

• https://www.researchgate.net/publication/379049697_Analyzing_the_Influence_of_OTT_Platforms_over_Movie_Theatres_JOTHIN_S
URIA_R_POST_GRADUATION_STUDENT_MCOM-IFA_JAIN_DEEMED_-TO_-BE_UNIVERSITY
• https://www.ibc.org/features/the-future-of-cinema-doom-or-boom/10460.article
• https://www.linkedin.com/pulse/movie-theatres-being-killed-streaming-services-right-yee-jian-ng
• https://observer.com/2021/07/hollywood-movie-theaters-vs-streaming-pros-cons/
• https://www.linkedin.com/pulse/future-film-how-streaming-reshaping-movie-theatres-immersefx?trk=public_post_main-feed-card_feed
-article-content
• https://digmedia.lucdh.nl/2023/12/12/streaming-vs-cinemas/
• https://www.cnbc.com/2021/01/02/movie-theater-owners-are-frustrated-about-streaming-but-their-survival-depends-on-studios.html
• https://www-statista-com.ap2.proxy.openathens.net/study/123723/cinema-chains-in-the-united-states-and-canada/
• https://www-statista-com.ap2.proxy.openathens.net/study/140848/amc-theatres-worldwide/
• https://www-statista-com.ap2.proxy.openathens.net/statistics/1422625/reading-reviews-movie-theater-frequency-us/
• https://www-statista-com.ap2.proxy.openathens.net/statistics/187122/movie-releases-in-north-america-since-2001/
• https://www-statista-com.ap2.proxy.openathens.net/statistics/1399935/moviegoers-theatrical-experience-importance-frequency-canada/
• https://www-statista-com.ap2.proxy.openathens.net/statistics/1469630/reasons-consumers-decide-to-watch-movie-in-theater-canada/
• https://www-statista-com.ap2.proxy.openathens.net/statistics/1469617/genres-movies-mostly-watched-at-theaters-canada/
• https://www-statista-com.ap2.proxy.openathens.net/statistics/1422625/reading-reviews-movie-theater-frequency-us/