Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e
by Fred R. David, Forest R. David
Future
Cinemark experienced a 2 percent decline in revenues in fiscal year 2014 as the movie industry continues to face increasing pressure from Netflix, Hulu, and other movie providers. In addition, many consumers now have 50-inch and larger TVs at home, providing even further incentive to skip expensive movie outings. Regal also experienced a slight decline in 2014 revenues and AMC experienced a 9 percent decline in revenues. Sales for Cinemark in South America were down significantly, accounting for much of the 10 percent drop in revenues in non-U.S. markets.
Cinemark continues to be dependent on top movie hits. To the extent popular movies are produced and released, customers have shown they will go to a movie theater, but for average movies, ...
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