Invoke Solutions Researches the Decline in Box Office Revenues

As Hollywood kicks off another “so called” blockbuster summer season
with the opening of Mission: Impossible III on Friday, consumers are
gearing up for a summer filled with movies boasting intense drama, hot
movie stars and a bonanza of special effects. However, new research
indicates moviegoers will not be kicking and screaming to get into the
theaters. In a recent series of Invoke LIVE! sessions conducted by
Invoke Solutions, when asked what is keeping them away from the movie
theaters, an overwhelming 78% of consumers said movie tickets are
simply too expensive, while 66% said the same about concessions. The
other top two reasons were rude crowds (and their ever-present cell
phones) and the lack of quality movies.
These research findings are the results from a series of four Invoke
LIVE! interactive researching sessions aimed at uncovering the truth
behind the decline in box office ticket sales. This research reflects
the responses from a national sample of more than 200 men and women
ages 18 to 64 with an interest in watching movies.
“We found that consumers enjoy the movie experience more when the movie
is compelling AND the price is right. But limited movie choices
combined with the high cost of a night out at the movies are prompting
consumers to stay home and watch DVDs,” said Peter Mackey, VP of
Research at Invoke Solutions. “Only 23% of movie goers were ‘very
satisfied’ with the quality of movies in 2005. When we probed deeper to
find out why they were dissatisfied, people said there were too many
remakes and sequels and that the excessive violence, sex and language
kept them away from the theaters.”
The study shows that 35% of moviegoers are attending movies less than
they did three years ago. During the session, moviegoers had the
opportunity to explain why this is so:
  • “I can watch in the comfort of my own home and don’t have to deal with other people, their children and their cell phones. I can go to the bathroom or get a snack without missing any of the movie. It’s also cheaper. By the time you buy movie tickets for two people and popcorn and soda, you’ve spent as much or more than the movie would cost to rent or buy.”
  • “I go to the movies much less frequently now because there is much less in the theaters that interests me and it costs too much.”
To explore what would entice consumers to come back to the theaters,
Invoke presented participants with three different twists on the movie
going experience and conducted qualitative and quantitative questioning
to understand each concept’s potential appeal. The concepts were
presented randomly in the Invoke Live! session to eliminate order bias
and participants were asked to rate each one and provide feedback on
each idea. The three concepts were:
  • A High-Definition Experience: An up close and personal theater experience with the latest in digital media technology. Watch a movie in comfortable stadium seating with your very own set of BOSE high fidelity noise-canceling headphones.
  • The VIP Movie Pass: Purchase this pass for a reasonable annual fee for significant discounts on tickets and concessions, VIP seating, no waiting in lines, front row parking at the theater.
  • Dinner, Drinks and a Movie: Order snacks and appetizers, as well as beer and wine during the movie with the option to stay and watch a double feature.
The VIP Movie Pass was found to be the most appealing. However, the
primary benefit of the VIP Movie Pass was by far the discounts on
tickets and concessions. Consistent with the other findings in the
study, the other perks were much less important than the savings
associated with going to the movies.
“Our research shows that there isn’t a “silver bullet” answer to this
problem. The solution lies in a combination of three inter-related
factors: producing more original movies, controlling run-away prices of
attending movies, and improving the overall crowd experience. Unless
these improvements are made, we are likely to see a continued fall-off
in attendance for some time to come,” said Mackey. “Hollywood needs to
pull consumers away from their ‘home theaters’ and DVDs back into the
Multiplexes by creating a budget friendly and unique experience that
they can only get in the movie theater.”