In Dorothy Pomerantz’s article, “How to get more people into movie theatres (without higher ticket prices)”, the difficulties of the theatre industry in response to the easier and cheaper at-home experience are analyzed. It is explained that many theatres are looking for any excuse to “boost ticket prices” in order to maintain profits, though this is discouraging many customers further due to the financial savings of simply watching movies at home (Pomerantz). The article then refers to the Belgian company Barco, which is creating theatres with three screens and selling time for companies to develop short films to play on them as opposed to rising ticket prices. These theatres are also being used to watch video gamers and concerts throughout the week, when movies are not as popular. This strategy reminds me of Rita McGrath’s article, The Transient Advantage, in which it is argued that in order to maintain a strategic advantage, companies must always be innovating. It is also argues that there are no long term strategic advantages in modern times. I think the movie theatre industry is beginning to be left behind by technological advances and because of the internet, and increasing their prices for small added benefits will not help them. Barco’s strategy to alter the experience in a unique way is an example of what movie theatres should be doing, as it demonstrates innovation and adaptation with the times.

Source: http://www.forbes.com/sites/dorothypomerantz/2014/09/30/how-to-get-more-people-into-movie-theaters-without-higher-ticket-prices

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