Changing Customer Habits - Strange Happenings in the Entertainment Sector
The widespread adoption of the VCR coincided with , or some would say resulted in the demise of the cinema. Many small town cinemas closed and the number of video rental outlets increased. This interesting article ( http://www.independent.co.uk/news/business/news/cineworld-to-buy-european-cinema-chain-in-500m-deal-9050974.html ) in the Independent today raises some really interesting questions:
1. In a world where convenience reigns supreme and a consumer can download a movie on a mobile device or home based entertainment system how come cinemas are big business again?
2. The tangible form of a movie for personal consumption (i.e. VCR tape or DVD) has reduced significantly and is manifested in the loss of retailers from the high street and much reduced stocking in supermarkets?
3. In a world where people are perceived to be becoming less tolerant why are we now more willing than in a long time to sit in a cinema next to people constantly eating popcorn and drinking beverages?
Perhaps more interestingly are the follow on questions for the wider supply chain:
1. What are the distribution channels for movies and music going to evolve into? and what does it mean to the current third party distributors?
2. Does this mean that movie based entertainment on mobile devices is coming to an end?
3. Or is the current technology for movie playback at home of insufficient quality that is driving consumers back to the cinema? If this is the case then will improvement in home entertainment systems see a reversal in fortunes for the cinemas and a wider distribution of playback products?
We have seen over the recent week that quarterly retail figures have been mixed; online shopping for convenience and high street price sensitivity have been the major drivers. Will this shift to convenience and price sensitivity move in to other areas?
1. In a world where convenience reigns supreme and a consumer can download a movie on a mobile device or home based entertainment system how come cinemas are big business again?
2. The tangible form of a movie for personal consumption (i.e. VCR tape or DVD) has reduced significantly and is manifested in the loss of retailers from the high street and much reduced stocking in supermarkets?
3. In a world where people are perceived to be becoming less tolerant why are we now more willing than in a long time to sit in a cinema next to people constantly eating popcorn and drinking beverages?
Perhaps more interestingly are the follow on questions for the wider supply chain:
1. What are the distribution channels for movies and music going to evolve into? and what does it mean to the current third party distributors?
2. Does this mean that movie based entertainment on mobile devices is coming to an end?
3. Or is the current technology for movie playback at home of insufficient quality that is driving consumers back to the cinema? If this is the case then will improvement in home entertainment systems see a reversal in fortunes for the cinemas and a wider distribution of playback products?
We have seen over the recent week that quarterly retail figures have been mixed; online shopping for convenience and high street price sensitivity have been the major drivers. Will this shift to convenience and price sensitivity move in to other areas?
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