Quote:
Originally Posted by KTrain
Except that theatres are essentially a monopoly already. Cineplex and Landmark are the only two real choices for most Canadians. Hell, Cineplex has 75% of the theatre market. If this is a valid business opportunity, Cineplex could easily start their own subscription plan for their own theatres.
There are indy theatres in smaller towns but no one is going to drive 30-60 minutes to see a movie in Cochrane or Okotoks.
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If Sinemia gets 30% of moviegoers in year one, what is Cineplex going to do? Create a subscription plan for more ? If they were going to create the subscription plan for the same cost, what's the point, just let Senimia exist and pay them the cost of a ticket, as the cost is the same to you, and you don't have to worry about member acquisition.
Sure they can copy the model, but it doesn't save them any money, because they have to offer the subscription for at least the same price!
This is the same as saying "Why don't the cabs charge less and create an app to complete with Uber"
Well they sort of tried. But these companies 'can' have very deep backers.
I am not saying they will be successful, just stating what their business model is.
Cineplex already offers Costco those 2 movies and popcorn and drink things for like $25. Do you really believe they wouldn't jump at the chance to sell a million tickets at $7 bucks each to Sinemia?
The marginal cost for getting people to the theater is basically nothing, and most theaters don't sell out most shows. It's convincing people to get off their couch and go that's the problem for theaters.