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Abstract

In 1946 UK cinema admissions peaked at 1.64 billion. This was followed by a spectacular decline in the popularity of cinema, and by 1984 annual admissions had fallen to just 54 million. In 1985 the UK''s first multiplex cinema opened. Since then operators have invested heavily in new multiplexes and admissions have soared. By 2002 annual admissions had risen to 177 million, and with box office takings of £755 million, the UK was the largest market in Europe. However, many analysts believe that the UK market is rapidly approaching saturation and there are doubts as to whether annual admissions can support the number of multiplexes currently in operation. The UK multiplex cinema industry provides an interesting platform for student discussion and readily lends itself to analysis through the application of a number of strategic management concepts and models. In particular this case study examines the reasons behind the initial decline in cinema admissions and assesses the role of multiplexes in their recovery. It also considers the current level of competition between the main multiplex operators and assesses future prospects for the sector.
Location:
Industry:
Size:
GBP750 million turnover
Other setting(s):
1930-2003

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Abstract

In 1946 UK cinema admissions peaked at 1.64 billion. This was followed by a spectacular decline in the popularity of cinema, and by 1984 annual admissions had fallen to just 54 million. In 1985 the UK''s first multiplex cinema opened. Since then operators have invested heavily in new multiplexes and admissions have soared. By 2002 annual admissions had risen to 177 million, and with box office takings of £755 million, the UK was the largest market in Europe. However, many analysts believe that the UK market is rapidly approaching saturation and there are doubts as to whether annual admissions can support the number of multiplexes currently in operation. The UK multiplex cinema industry provides an interesting platform for student discussion and readily lends itself to analysis through the application of a number of strategic management concepts and models. In particular this case study examines the reasons behind the initial decline in cinema admissions and assesses the role of multiplexes in their recovery. It also considers the current level of competition between the main multiplex operators and assesses future prospects for the sector.

Settings

Location:
Industry:
Size:
GBP750 million turnover
Other setting(s):
1930-2003

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