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The Return of Drive-in Theater
With social distancing rules preventing mass gatherings, many movie theaters around the country have been going out of business. The movie screening industry, however, is finding a creative way to survive. Once a popular form of entertainment that lost favor in recent years, drive-in movie theaters are making a comeback. With businesses looking for new ways to utilize their space, while keeping customers safely apart, many businesses have been erecting movie screens in their parking lots. Other large outdoor venues are also beginning to cash in on the opportunity. Drive-in movie theaters are beginning to show up in fairgrounds and sports stadiums.
The drive-in experiences are also not limited to movies. Tampa’s Raymond James Stadium is set to offer drive-in concerts, trivia contests, a silent disco, and “Car-A-Oke” nights. For many firms, this is a way to earn revenue at their facilities while they wait until they can return to their regular business operations. It will be interesting to see how many of these drive-in experiences continue after that happens.
Discussion Questions:
- Discuss the decision to offer drive-in services in the context of fixed and variable costs. Would a firm’s decision differ if they own their property compared to if they leased it?
- Some venues are charging up to $60 per car per drive-in event. Discuss how supply and demand will affect the viability of these businesses after indoor movie theater and event spaces can reopen.
Sources: CBS Pittsburgh “Cinemark Movie Theater At Pittsburgh Mills Closing”; Quartz “There are barely any drive-in movie theaters left in the US” by Adam Epstein; ABC News “Drive-in entertainment sees a resurgence during the pandemic, from movies to comedy” by Meredith Deliso and Sasha Pezenik; Miami New Times “Drive-In Movie Theaters Pop Up Across Miami and Fort Lauderdale” by Suzannah Friscia; Syracuse.com “Owner of Pizze Fritte setting up drive-in movies at New York State Fairgrounds” by Chris Libonati; South Florida Sun Sentinel “Miami Dolphins turning Hard Rock Stadium into drive-in movie theater” by Ben Crandell.
