Fine Young Cannibals in the U.S. Motion Picture Exhibition Market

Using a large and comprehensive theater level database covering over $18billion in theater revenues over a five year period, I document the extent and nature of entry, exit, revenue cannibalization and market expansion that occurred during the height of the 1990’s boom in movie theater construction. The boom culminated when four of the six the largest cinema chains in the US went into bankruptcy protection during 2000. Along the way, I examine industry and media claims that the construction boom actually caused the bankruptcies. If true, such claims would raise important questions about the relationship between private and social returns to investment.

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