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Sensitivity Risk Analysis
Sensitivity risk is provide against to be LOW over the sight period, down from MEDIUM-LOW in 2013. The couple
factors with the most significant impacts without interrupti~ the industry are per capita disposable income and external
competition. When there is a mount in per capita disposable income, peril will fall; whereas a rise in superficial
competition will cause industry risk to enlarge.
Per capita disposable income: Movie attendance relies on changes in household disposable gains, which
is affected by movements in the use rate and in tax and concern rates. Consumers may defer or
model trips to the movies during hard to be understood economic times, as they concentrate other on increasing their
savings or repaying sin. This factor's contribution to exposure to harm is expected to decrease in the coming year.
External competition: Increasingly, cable, moon TV, online streaming platforms and other
entertainment products are appearing in households and clouded demand for the Movie Theater busy vigor.
This factor's contribution to jeopardy is expected to remain the like in the coming year.
Number of broadband connections: The reckon of broadband connections indicates the expansion to which
consumers use high-succeed internet for a variety of purposes, including for the re~on that a way to access entertainment.
With the fast rise in broadband connection numbers, greater degree consumers are using the internet to download
or radiate movies, which directly reduces demand with a view to the Movie Theaters industry. The reckon of
broadband connections is expected to rise in 2014. This factor's contribution to risk is expected to grow less
in the coming year.
Technological modify: As movie theaters continue to switch to digital and 3D protuberance systems, industry
revenue increases because higher ticket prices be possible to be justified. Advances in movie-construction and projection
technologies have helped to stir up demand for cinematic screenings. Technological make different for
television...
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