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1949 THEATER SITES 399
1. Technological
The development of television, bringing visual entertainment within easy reach of the individual and large groups as well.
2. Social
The increasing interest in home entertainment, which radio and television provide free.
3. Economic
The decrease in effective family income, because of reduction of industrial employment opportunities for women and the change from inflation to deflation in our economy.
4 . Physical
The increasing demand for up-to-date facilities and conveniences inside and outside the theater auditorium, because of competition with other forms of commercial entertainment and the increasing number of cars.
5. Urban Development
The decentralization of industries and the development of new residential areas on the fringe of established urban centers, which will make necessary new theater facilities at the expense of those already established in the regional area.
In view of these trends, the theater operator who intends to build a new theater faces the following problems :
(a) how to utilize more than 37 to 40 per cent of the potential seating capacity.
(b) and consequently, how to achieve a profitable yearly revenue per seat.
The answers to these problems cannot be provided simply by a mathematical formula, but only by considering a number of factors involved.
6. Determining Factors of Revenue per Seat
There are four major factors which directly affect the revenue per seat of a theater:
(a) The class of picture the theater offers. (This depends largely on the films available in the motion picture film market and the demand of the population from which the theater draws its attendance, as related to age groups, purchasing capacity, spending habits.)