Tuesday, February 20, 2007

Movie theaters still making steady profit despite piracy threat

This report shows that movie theaters are making the same profit as they did in 1997. To compensate for the decline in audience, the theaters, as we are all too aware of, hike up the ticket price. I don't think this can continue. Technological innovation in the home theater sector is advancing by leaps and bounds, which will inevitably mean that less people will go to the theater. This will lead to higher ticket prices, which will further discourage people from going to the theater. I think that in order to survive, theaters will have to stay on the cutting edge, and continue to deliver an experience that is distinct from home theater systems.

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