8 March 2009
Regal Entertainment Group:
The Movie Theater Segment of the Entertainment Industry
REG currently attributes 67 percent of revenue from ticket sales, 26 percent from
concessions, and the rest made up from advertising and other generated sources. The current
products REG offers are “critically-acclaimed films, alternative productions, restored classics,
and first-run foreign movies” (Lee). The company utilizes its assets very well during peak and
non-peak seasons. During the time in which movie sales usually slump, REG rents out its
facilities to different organizations to use for business forums, presentations, etc., as well as offer
big screen concerts on a monthly basis.
Their website, along with websites that REG is strategically partnered with, was the main
communication by the company to the consumer. Here customers could see which bands were
playing, how to get tickets, movie times, ticket prices, theater locations, movie trailers, and more.
REG also uses a phone service for some of this info as well. Advertising and marketing consisted
mostly of the website, and phone service, in addition to employing various newspaper listings for
ads, movie times, and theater locations. Objectives, in congruence to industry norm for most
business organizations, included the desire to increase revenues as well as Net Income, and in
REG’s case, remain the leader throughout the industry.