L.E.K. Consulting’s annual Media & Entertainment Study was conducted between December 2018 and January 2019. We surveyed around 2,000 households on their entertainment choices, preferences and viewing habits. This Executive Insights analyzes key findings about movie theater attendance and subscription services.

1. Media & Entertainment Analysis
Executive Insights
2019 Media & Entertainment Study
L.E.K. Consulting’s annual Media & Entertainment Study
was conducted between December 2018 and January
2019. We surveyed around 2,000 households on their
entertainment choices, preferences and viewing habits.
This Executive Insights analyzes key findings about
movie theater attendance and subscription services.
The 2019 L.E.K. Consulting Media & Entertainment Study was conducted by Dan Schechter and Stephen Matthews, Managing Directors in L.E.K.
Consulting’s Media & Entertainment practice. Dan and Stephen are based in Los Angeles.
For more information, contact: mediaentertainment@lek.com.

2. Media & Entertainment Analysis
Executive Insights
The theater experience is still relevant
2019 Media & Entertainment Study2
Movie subscription services
t
U.S. theater per capita admissions have
been trending downward over the past
two decades. However, the theater
experience is still relevant. Around
70% of the U.S. population has gone
to the movies at least once in the past
year, according to the Motion Picture
Association of America (MPAA) and
our survey. A majority (65%) of these
respondents strongly agreed that “There
will always be occasions to see movies at
the theater.”
Respondents also strongly agreed with
a range of other statements regarding
reasons for attending movie theaters.
The good news for exhibitors is that
consumers simply can’t replicate at home
many aspects of the theater viewing
experience.
21%
19%
65%
19%
63%
22%
61%
20%
56% 53%
Reasons for seeing a movie in a theater vs. at home
100
80
60
40
20
0
Always occasions
to see movies
in theaters
Experience better
for action movies
Way to treat myself Only way to see
movie when it
comes out
It’s a social activity
*Answers are from respondents who watched a movie in a theater in the past 12 months. Extent of agreement with reasons for viewing movies in a theater
(0 means “strongly disagree” and 10 means “strongly agree”).
Source: 2019 L.E.K. Media & Entertainment Study
Moderate agreement
Strong agreement
Percentageofrespondents(N=1,362)*

3. Media & Entertainment Analysis
Executive Insights
Consumers are highly interested in movie subscription services
2019 Media & Entertainment Study3
There are currently a handful of movie
subscription programs in the U.S, each
with a slightly different business model.
But one thing is certain: Consumers love
the idea.
Of those respondents who had gone to
the movies at least once in the past year,
34% said they would be very interested in
a monthly subscription service, while 42%
stated they would probably or definitely
use such a service at a reasonable price
point — on average around $20 per
month. These results were consistent with
our 2018 survey.
The most important reasons consumers
subscribe to these services are no limit on
the number of movies included and no
restriction on viewing time or location.
Effect on consumer behavior
t
Factors influencing decision to purchase in-theater movie subscription
*Extent of agreement with reasons for viewing movies in a theater (0 means “strongly disagree” and 10 means “strongly agree”).
Source: 2019 L.E.K. Media & Entertainment Study
100
0
80
60
40
20
No limits on
viewing
time/date
Number of
movies
allowed
per month
Flexibility
in theater
venue
Can visit
different
chains
Premium
format (e.g.,
IMAX, 3D)
Concession
discounts
Concession
rewards
In-seat
dining
Alcohol
permitted
17%
65%
16%
65%
20%
57%
20%
53%
20%
46%
20%
41%
10%
20%
39%
13%
22%
14%
Moderate agreement
Strong agreement
Percentageofrespondents(N=1,008)*

4. Media & Entertainment Analysis
Executive Insights
Movie theater subscription products materially change behavior
2019 Media & Entertainment Study4
While some cinema subscription services,
such as MoviePass and Sinemia, have had
to shutter their doors, others may indeed
be viable. This is particularly true of those
operated by the theater chains themselves.
We asked current subscribers how their
behavior had changed since subscribing.
Across all metrics (e.g., number of movies
seen, concessions purchased), a majority
of subscribers reported an increase in
activity. For example, 58% of subscribers
went to the theater more frequently.
The survey results also highlight the
potential for theater chains to use
subscription programs to increase loyalty
and concession sales.
t
Key takeaways and strategic considerations
Impact of cinema subscriptions on viewing behavior
58%%
60%% 59%%
57%%
54%%
50%%
60
40
20
0
Go to movie
theater
more often
See more
blockbuster movies
in theaters
More loyal to
a single
chain/location
See more
smaller-budget/
independent films
Buy more
concessions
See same movie
multiple times
*Represents percentage of respondents who strongly agree (rating of 8-10) with statements about how subscriptions have affected their movie-watching behavior.
Source: L.E.K. 2019 Media & Entertainment Study
Percentageofrespondentswhostronglyagree*

5. Media & Entertainment Analysis
Executive Insights
About L.E.K. Consulting
L.E.K. Consulting is a global management consulting firm that uses deep industry expertise and rigorous analysis to help business leaders achieve practical results with real
impact. We are uncompromising in our approach to helping clients consistently make better decisions, deliver improved business performance and create greater shareholder
returns. The firm advises and supports global companies that are leaders in their industries — including the largest private- and public-sector organizations, private equity firms,
and emerging entrepreneurial businesses. Founded in 1983, L.E.K. employs more than 1,400 professionals across the Americas, Asia-Pacific and Europe. For more information,
go to www.lek.com.
L.E.K. Consulting is a registered trademark of L.E.K. Consulting LLC. All other products and
brands mentioned in this document are properties of their respective owners.
© 2019 L.E.K. Consulting LLC
About the Authors
Dan Schechter is a Managing Director and Partner in L.E.K. Consulting’s
Los Angeles office and leads the firm’s Global Media & Entertainment
and Technology practices. Dan’s broad experience includes working with
leading technology and internet companies, the largest U.S. telcos, major
movie and TV studios, new advertising media, OTT service providers, and
organizations within other sectors.
Stephen Matthews is a Managing Director and Partner in L.E.K. Consulting’s
Los Angeles office and works across the Media & Entertainment,
Technology, Retail, and Consumer Products practices. He has extensive
experience in advising corporate and private equity clients in the U.S. and
globally on a range of issues, with a particular focus on digital strategy.
5
Key takeaways and strategic considerations
The movie theater experience still resonates with consumers — Consumers still consider going to the movies a key part of their
entertainment and social diet.
Theater subscription services show huge potential — While the optimal movie theater subscription service has likely not yet been
created, some current services have been embraced by consumers and demonstrated a material impact on behavior. Whoever gets it
right could win big.