Read case \"Adding a Third Dimension Requires New Investment Spending \" and dis

Question

Read case "Adding a Third Dimension Requires New Investment Spending " and discuss the following question:

Will the movie-theater chains' total investment in 3D projection systems generate a movement along or a shift in the planned investment function for the United States?

CASE.

Of the approximately 40,000 movie screens in the U.S., fewer than 8,000 utilize the digital technology required for projection of three-dimension (3D) movies. Converting a typical multiscreen theater from a projection systems and projectors requires an expenditure of about $70,000. Major movie-theater chains such as AMC Entertainment, Inc., Cinemark Holdings, Inc., and Regal Entertainment Group are in the midst of investing in new projection systems for more than 1,000 theaters. Hence, putting the latest 3D movie-projection technology into place is requiring an aggregate investment expenditure of about $70 million.

Explanation / Answer

Sure, Investment decision my AMC Entertaintment, Cinemark and Regal Entertaintment in 1000 theatres will make a think on another competitiors in the industry because this will make 9000 out of 40000 theatre in the united states is 3D. A shift in the planned investment will be in the forms

1) Implementing 3D by the above teams will be influencing local competitors and other domintators in the industry

2) Number of 3D films increasing in the recent past will make a think on other theatre owners

3) Increasing the 3D theaters will be motivating film manufactures to go more 3D Films

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