Sunday, February 19, 2017

Movie Executives: 3 Action Items to Address the Challenge from Streaming

As a movie exec, you have seen market share eroded by online streaming services like Netflix or Amazon. As a graduate student in the Northwestern Integrated Marketing Communications program, with the interests in the media industry and digital platforms, I have found two articles which have addressed the issue above and brought us some inspirations on how to address the challenge.

The Movie Theater Industry Isn’t Dying, it’s Evolving” by Elias Goodstein presents a detailed landscape of the exhibition industry and discusses major factors that have affected the decline of old movie theater business model, including the high ticket prices and online streaming services. In the end, Goodstein argues a few reasons why the theater business still seems relevant and alive, showing his optimism about this industry.

Alexandra Gibbs, a digital news writer at CNBC, brings us the second article “Netflix and Kill: Is Streaming Hurting Movie Theaters?Gibbs wrote about interviews with movie theater executives, analysts, and media professionals. They admitted that streaming services like Netflix have a significant impact on consumers’ leisure time and spending. However, most of the professionals also kept faith in the movie theater industry’s inherent vitality and uniqueness because theaters can provide incomparable movie-watching experience, just with a different price level.

Based on my review of two articles above and my relevant studies done on the movie industry and consumer insights, I have developed three action items you should consider doing now. They are:

  •         Lower the Price One competitive advantage of competitors like online streaming services is the lower costs (of money and time). Lowering movie ticket prices cannot be easy, but reducing the price difference can be achieved by movie passes or loyalty programs.

  •         Enhance the Experience Movie theaters should put effort to enhance customer experience by providing great atmospheres and services, such as luxury seats or various kinds of food and drinks.

  •         Evolve and Prosper Never stop improving the technologies in the fields of both exhibition and production. The industry needs constant evolution and improvement to generate traffic and profits.

As a movie exec, you need to stay ahead of the changing media landscape as online streaming services change the movie watching habits of your high value markets. When you develop your business plans, be sure to consider these three action items when evaluating the impact online.

Sylvia Chen

I am currently a graduate student in the Integrated Marketing Communications program at Medill, Northwestern University, with a specialization in digital and interactive marketing. I have completed undergraduate studies in media and economics, and had professional experience in video productions, social media management, and data analysis. For inquiries, you can contact me on Twitter @sylviachenx or LinkedIn.

No comments:

Post a Comment