The document discusses various aspects of how modern multiplex cinemas operate as businesses. It notes that while multiplexes cater primarily to younger audiences aged 15-25, they also target families. It explains that cinemas make very little from ticket sales and instead rely heavily on food and drink concessions to turn a profit. Various "trade secrets" are described around how cinemas produce inexpensive concession items yet sell them at high markups. The document raises questions about whether this business model prioritizes profits over the movie-going experience.

1. 1. Your views on the Multiplex
Positive points about the Multiplex Negative points about the Multiplex

2. 2. The Business of the Multiplex
Develop an awareness of how the Multiplex is a
serious, money making business.
Consider what it offers audiences in terms of choice.

3. 3. Catering for…..
• 15-25 year olds core Multiplex
audience group.
• Adverts target them, film choices keep
them in mind.
• The family audience is also targeted.
Above – 1951 London 3-D
• Since 2008 - Rise in 25+ attending the
Below – contemporary
cinema audience
• 15-25 switching to online
entertainment.
• 7-34 year olds - 55% of the total
cinema population.
(UK Film Council)

4. 4. The Supermarkets for Film Viewing
Creating a BRAND IDENTITY
Why is it important to do this?

5. 5. What brings the money in?
Showcase Cinema state that they receive 10%
of the overall ticket price.
The majority of the money goes to the
distributors / producers and taxes.

6. 6. The film is not enough
• Cinemas in most cases are no
longer owned by the studios.
• Cinemas make very little profit
from selling tickets for films.
• Some cinemas have a percentage
deal with studios.
• Distributors are also paid.

7. 7. The Phantom Menace
(1999)
• Twentieth Century Fox distributors
• Lucas Film Ltd producers
• In USA the studio and distributor
demanded 100% of the ticket sales in
the first 2 weeks.
• Why would both the studios and
cinema chains agree to this deal?
• Guaranteed success – people queued http://www.the-movie-
just to see the trailer. times.com/thrsdir/top60dir/top60Search.mv?Star%20Wa
rs:%20The%20Phantom%20Menace
• Make money over a long period. Long
box office life.
• Most films have a good opening http://www.the-movie-
times.com/thrsdir/top60dir/VS.mv?Star%20Wars:%20
weekend and sales decline rapidly The%20Phantom%20Menace+I%20Am%20Legend
after that.

8. 8. The Concessions Stand
• “When you go to the movies you are really going to the
candy store” www.cnn.com
• This is where the cinemas make their money.
QUESTION:
How are the concessions at the Showcase and Cineworld
presented and positioned to attract customers?

9. 9. QUESTIONS
• Do you buy food at the
cinema?
• How much money do you
spend on food / drink?
• How much (on average) do
you spend when you go to
the cinema?

10. 10. TRADE “SECRETS”:
• A lot of popcorn for a small quantity of kernels
• Bulky size Appears to be a good deal.
• Salt, butter, coconut oil and sugar  Makes you
thirsty.

11. 11.
Concentrated glucose mixture.
Carbonated water.
Ice.
Very cheap to produce.
Can be self-service to save money.

12. 12. Come and Buy!
• Cinema buys low cost
food / drink.
• Sold at a very high
cost.
• No competition.
• Attractively presented.

13. 13. Macdonaldisation of Cinema
• Cheap, easy to prepare food.
• Salt and sugar added creates thirst.
• Smells attract customers.
• Drinks are often self service (speed up queues)
• If ice is included less drink is used.
• Pick and Mix – high price per weight, mostly heavy sweets, bought in
bulk by cinema – very low cost.
• Pressure taps, soap dispensers, automatic hand dryers, single toilet
paper sheets.
• Disposable cartons.
• Predict sales / attendance based on films being screened.
• Multiple screens dedicated to popular films.
• Ticket machines – speed up queues, fewer staff.
• Staggered viewing times  reduces amount of staff required –
including the projectionists.
• Projectionists slightly expand the gap between the gate supporting the
film and the lamp to avoid unmanned reels burning / snagging, even
though this puts a film slightly out of focus
• How many projectionists operate at the Showcase in one day?
• How many screens are they operating?

14. Excellent business sense or cheating the
customers?
• One Cinema chain executive has described the cup holder
mounted on each seat as "the most important technological
innovation since sound."
• The extra salt added into the buttery topping on popcorn as the
"secret" to extending the popcorn-soda-popcorn cycle
throughout the movie.
• Cinema owners don't benefit from movies with gripping or
complex plots, since that would keep potential popcorn
customers in their seats.
• "We are really in the business of people moving. The more
people we move past the popcorn, the more money we make”
http://www.slate.com/id/2133612/
What do you think about these comments?

15. 14. Watch the adverts
www.hatchmarketing.com
Cinemas are paid large
amounts of money to
advertise (posters in
foyer, trailers and adverts
before main picture).
P&D £325,000 for 6 weeks
big screen advert.
Toy Story 2 started at
11.30. We were 25
minutes late and still
Do you pay attention to the adverts? managed to catch the
start.

16. 15. People in the North and North East of
England pay fewer visits to the cinema annually
than anywhere else in the UK.
• How might this affect what films the Multiplex
cinemas in this area choose to show?

17. Homework Task: What about the films?
• What films are showing at the Showcase and
Cineworld this week?
• What do you think about the choice of films?
• Write down some thoughts in response to this
question: Do Multiplex cinemas offer us more
choice?

18. Have your views on the Multiplex changed?
Positive points about the Multiplex Negative points about the Multiplex