Overview
The state of filmed entertainment is in flux. Theatrical attendance and box office numbers are still being pressured by new distribution models and digital competitors, release windows are constantly evolving to align with new consumer expectations and attention spans, and home entertainment continues to shift from an ownership- to a subscription-based model, complete with differentiated economics.
L.E.K. Consulting has helped numerous clients successfully navigate these complex industry dynamics by offering a deep understanding of audience preferences and habits, sharing detailed knowledge of the value chain and related relationship nuances, and providing informed, strategic guidance on investments and film consulting.
How we help
We have extensive experience working with filmed entertainment stakeholders, including:
- Major film studios
- Independent film studios
- Film exhibitors
- Distributors
- Market research firms
We support clients with insights and strategy across multiple areas, including:
Content management
- Determining the value of the current slate and optimizing financing strategies is a key part of our approach.
- We also uncover which library assets hold monetization potential and how to best leverage them.
Windowing strategies
- Film rents are optimized for both studios and exhibitors as they navigate evolving theatrical windows.
- Our teams assess how digital release windows and premium video-on-demand are disrupting traditional models and recommend the most strategic paths forward.
Economics/business model
- Evaluating the value of theatrical subscription services for studios, cinemas and consumers helps clarify long-term viability.
- Studios and exhibitors are guided toward new opportunities to drive visits and enhance the overall guest experience.
- For nontraditional and new players, we outline sustainable paths to growth in the increasingly competitive film studio environment.
Operations
- Identifying cost reduction opportunities for studios and exhibitors remains central to improving efficiency.
- To help service providers scale, we enhance offerings so they align with the expectations of both established and emerging content developers.
- Strengthening guest loyalty, increasing visit frequency and boosting per-capita spend are critical outcomes we support for film exhibitors.
Growth strategy
- Our forecasts span theatrical exhibition, streaming film trends and emerging consumer behaviors.
- Each player in the value chain benefits from clearly defined growth pathways that we help surface.
- We also build participation strategies that support expansion into high-growth filmed entertainment markets like China.
Examples of our work
L.E.K. has a long track record of supporting players in the film industry and is one of the global leaders in the sector. Select examples of our work include:
- Performed a detailed operational diagnostic for a major theatrical chain that led, within 12 months, to $10–$15 million of annual savings
- Detailed the true profitability of film projects for a major service provider, improving pricing strategy and project selection
- Assessed the market trends and growth drivers of the theatrical film markets in the US and Australia
- Evaluated future opportunities for market research in the theatrical film market, including materials and trailer testing
- Conducted commercial due diligence on an independent production studio, outlining the independent film ecosystem and its outlook
- Assessed the market and potential growth for a film production company, including market size, customer perspectives, competitive dynamics and growth opportunities
