Movie Theaters are Dying Business
In the world of business, Entrepreneurs need to Focus on Growing Business & Exit from Dying Businesses.
Movie Theatres have long served as the place of fun & excitement – but the growth is slowing down & entering a period of Exit Signal. We have sent the same warning about ATM business year back.
Following are the Rationale behind Theater problems:
- COVID LOCKDOWNS made people fearful about movie theaters as the virus can spread through air on long exposure
- RICH MOVIE ENTERTAINERS invested in home theatres with sophisticated LED TV, Sound System & Recliner Seating Arrangements. Since most of the families go out to watch movie together, they can simulate the BIG SCREEN experience at home – the ROI will be back in few years considering the fuel, ticket & snacks cost.
- OTT COMPETITORS like Netflix, Amazon, Disney are Giants who Offer better price than Theaters. The Limited Release was the key factor for driving audiences to theatres.
- MASSIVE ADAPTION OF INTERNET through Jio Affordable Plans, Lockdown Acceleration lead to the Safe Entertainment arena of OTT.
- VR ACCELRATIONS like Facebook Oculus, Microsoft Hololens are going to create a new trend where People can virtually watch movies together without going out of their home. Future is this!
- ARROGANCE OF THEATER OWNERS those who know them more closely, they are not Transparent Win-Win business people. They create Non-Competitive Economic Moat by locking down Releases to their chosen theatres, thereby preventing new entrants. They even go further extent to Threat movie producers & actors who does not align with their bully conditions. Whenever service mindedness is replaced by arrogance – customers gets agitated – it is the way for new entrants! Same way Blockbuster was killed by Netflix, ATMs are getting killed by PAYTM etc.
If you have Theatre stocks Or Theatre business, it is better to slow down & migrate to other Growth stocks & businesses.
Our pick Tata Elxsi gained 600% Returns in 1 Year – That is the power of Switching to Growth Business like EV. Performance
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