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Cinema Exhibition Decline

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Why the decline in cinema exhibition and increase in video streaming
A key creative industry in Australia is cinema exhibition and in most recent times is the video streaming industry. Film has come far in Australia from its origins of the first silent film produced in 1906 by the Tait brothers, The story of the Kelly Gang (Australia.gov.au 2015). Cinema in Australia followed the original format of viewing movies in drive ins. The movies of the time followed Ozploitation film genre or as writer/director Quentin Tarantino likes to refer to it as the genre of “Aussiesploitation” (Grindhousedatabase.com 2015) such as Razorback (1984) and Mad Max (1971). This genre was created by the Australian film industry and the only criteria for a film to
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The first phase was ‘suburbanization’ (1980-2000) where smaller screens were built in shopping centres instead of drive ins. The second phase was ‘diversification’ (2000’s) wider range of cinema types became available creating new experiences to the audience (Given, Curtis & McCutcheon 2013). However the greatest change has been from film prints to digital. This has made it cheaper for cinemas to buy films from distributers, by the end of 2012 majority of exhibition chains had changed their cinemas to digital. This poses a great challenge to the Australian cinema industry as it will no longer be a film industry, subsequently this digitalisation of films has brought greater ways of audiences to view movies. This revolution of film to digital created competition between major exhibitors such as Hoyts (which has 351 cinemas as reported in 2010) and Village (which has 219 cinemas as reported in 2010) (Given, Curtis & McCutcheon 2013, p.19). Before and after this revolution there has been an undulation and inconsistency of people visiting the cinemas, there was a low point in 1984 of roughly only 30 million people yet increased in the 2000’s to a little over 90 million. Yet there is still a steady demographic that visit …show more content…
The average cost of a ticket in Australia ($12.89 - $13.10 [as recorded in 2011 and 2012]) is higher than that of other countries such as the US ($7.40), New Zealand ($8.85) and Britain ($8.98) (Rosenberg 2011; Cunningham, Turnbull & Verhoeven n.d.). This cost of going to the movies to someone who goes regularly can be quite expensive, especially for families. If a family of four when to the movies they would have to pay on average $67, this cost doesn’t even include the cost of beverages or food. People are switching to video streaming services to save money, the cost of a single ticket to the movies is less than the monthly subscription cost of Netflix on a basic plan of $8.99 (Netflix.com 2015). Realistically if a family visits the cinema more times than five times per month it would be more beneficial financially for that family to use Netflix, however for people who still passionately want to support the industry they will still pay. Although people primarily now use Netflix to view unlimited amounts of films and television shows for free, some people still value hard copies of films such as DVD’s if they enjoyed the movie and would watch it multiple times (Stewart 2015). The most successful DVD distributer to Australia is Madman Entertainment, originally used for

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