All the following are true about exhibition during the pre-pandemic era EXCEPT: O Converting to digital projection was/is expensive O Theatres still struggle to compete with streaming services These chains often make exclusivity agreements with studios to increase profits O The digital conversion benefitted all theatre chains - big and small, mainstream and indie.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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### Exhibition in the Pre-Pandemic Era

In evaluating the state of exhibition (specifically movie theaters) during the pre-pandemic era, consider the following statements. Analyze them to understand various dynamics and challenges that theaters faced:

1. **Converting to digital projection was/is expensive.**
   - Transitioning from traditional film projection to digital projection incurred significant costs for theaters.

2. **Theatres still struggle to compete with streaming services.**
   - Even before the pandemic, movie theaters faced competition from the growing popularity of streaming platforms.

3. **These chains often make exclusivity agreements with studios to increase profits.**
   - It has been common for theater chains to create exclusivity agreements with movie studios, ensuring certain films are shown exclusively in their theaters, which boosts profits.

4. **The digital conversion benefitted all theatre chains - big and small, mainstream and indie.**
   - The conversion to digital projection did impact various theater chains; however, the extent of the benefit varied among them, with smaller or independent theaters often struggling more due to higher relative costs.

**Conclusion:**
The statement that does not fit with the rest is: "These chains often make exclusivity agreements with studios to increase profits," as it was indicated to be true by the user selection. This understanding provides insights into the operational and competitive landscape of the film exhibition industry prior to the COVID-19 pandemic.

This content is crucial for anyone studying the evolution of the film industry, particularly those focusing on exhibition practices and their economic impacts.
Transcribed Image Text:### Exhibition in the Pre-Pandemic Era In evaluating the state of exhibition (specifically movie theaters) during the pre-pandemic era, consider the following statements. Analyze them to understand various dynamics and challenges that theaters faced: 1. **Converting to digital projection was/is expensive.** - Transitioning from traditional film projection to digital projection incurred significant costs for theaters. 2. **Theatres still struggle to compete with streaming services.** - Even before the pandemic, movie theaters faced competition from the growing popularity of streaming platforms. 3. **These chains often make exclusivity agreements with studios to increase profits.** - It has been common for theater chains to create exclusivity agreements with movie studios, ensuring certain films are shown exclusively in their theaters, which boosts profits. 4. **The digital conversion benefitted all theatre chains - big and small, mainstream and indie.** - The conversion to digital projection did impact various theater chains; however, the extent of the benefit varied among them, with smaller or independent theaters often struggling more due to higher relative costs. **Conclusion:** The statement that does not fit with the rest is: "These chains often make exclusivity agreements with studios to increase profits," as it was indicated to be true by the user selection. This understanding provides insights into the operational and competitive landscape of the film exhibition industry prior to the COVID-19 pandemic. This content is crucial for anyone studying the evolution of the film industry, particularly those focusing on exhibition practices and their economic impacts.
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