Thursday, February 19, 2015

Movie Theaters Will Have To Change

In past blog posts, I've written about the potential unbundling of cable television, as well as the challenges that the traditional broadcast networks face.   This week, Chris Gayomali has an interesting column at Fast Company about the future of the entertainment business.  He describes five potential developments in the upcoming years.   Naturally, he talks about issues such as the unbundling of cable.  His fifth point is quite interesting though.  Here it is:


Meanwhile, movie theaters (remember those?) will need new ways to convince customers to change out of their PJs. While local IPAs and grilled asparagus and goat cheese pizza might not be lyrics in "Let’s All Go to the Lobby," they are offerings on the menu of Alamo Drafthouse, an Austin-based movie-theater chain that hopes to expand to 50 locations nationwide by the end of 2017. Goodbye, hermetically sealed nacho cheese!

I think Gayomali is absolutely right.  As content becomes available to us any time we want it, and as the in-home experience keeps getting better, movie theaters will face a tough competitive environment.  They will absolutely have to focus on the user experience.  Not unlike brick-and-mortar stores actually... the in-store experience can help retailers compete against e-commerce players.  Similary, the in-theater experience will be a key competitive weapon.   

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