The Market Selection Process

The Market Selection Process
In the past few years, due to the advent of stadium seating and advancements in projection and sound technology, the motion picture theatre business has been forced into a near total retooling. With major companies being forced to concentrate their efforts in large metropolitan markets, great opportunities exist in small to medium markets.

Aliance has seized the opportunity to become the first theatre in many markets to offer these new advancements – specifically, stadium seating and digital sound. The industry rule of thumb is that new “stadium seating” theatres immediately grow a market by 30%. Aliance has out performed these numbers and consistently produces a 40% to 60% jump in movie theatre attendance/revenue.

Why is Aliance so successful at selecting and developing markets?

First, Aliance typically buys the land and builds its own buildings. From start to finish Aliance has the financial power to ensure the success of each and every project. Aliance is also open to leases, developed retail sites, co-developments, and possibly even management deals – depending on the market situation.

Secondly, Aliance pays attention to every detail and every penny.

“ We run a very tight operation – we account for everything,” said Anne Ragains, President & CEO of Aliance Entertainment Inc. and Great Escape Theatres. “We also sweat the small stuff – everything from knowing how many steps it is for customers from the parking lot to the lobby; to designing the concession stand to maximize labor efficiency. We are constantly fine tuning the interior design to better service our patrons. Everything we do is very deliberate.”

Finally, Aliance does its homework for each and every market. In a given year, Aliance may consider over 100 potential sites and select only a handful. An area’s demographics, market size, amount of competition and potential development opportunities all play a role in careful market selection that leads to greater success and profitability.