Consumers’ thirst for entertainment can no longer be quenched by just a soda and popcorn in a movie theater. They crave interactive experiences that tantalize the senses. Throughout history, entertainment has played an important role in the socialization of people. It all started in the outskirts of major cities in medieval Europe. Here, people would gather in pleasure gardens to enjoy live entertainment, fireworks, dancing, games and primitive amusement rides.

Movie Theaters Setting Records

A real turning point in family entertainment came in 1959 when AMC introduced the ideology of "first run movies." At that time, people came in droves to experience the Silver Screen first-hand at the then Durwood Theaters Inc., in Kansas City. The exhibition industry was reinvented again by AMC’s opening of the world’s first multi-screen theater in Ward Parkway Shopping Center, a mall in Kansas City. In 1966, AMC debuted the world’s first four-screen theater in a 100,000 sq.ft. strip center with 700 parking spaces. AMC also achieved four other milestones: the world’s first six-screen theater in Omaha, Neb. in 1967; the world’s first 11-screen theater in 1970; the United States’ first 14-plex in Houston, Texas in 1987; and the largest theater in North America with 24 screens in Dallas, Texas during 1995.

Today, promoters employ newfangled concepts to lure people into theaters. Stadium seating, specialty format film theaters such as IMAX 3D theaters and the development of under one-roof components such as Regal’s Funscape concept and Planet Movies by AMC, coupling a theater and Planet Hollywood theme restaurant, are the bait used to reel in consumer dollars. It seems to be working, as movie attendance continues to climb. In 1997, 11.4 billion people went to the movies with 60% combining shopping and nearly 8% combining dining. Revenues reached $6.4 billion this year, an increase of $500,000 over 1996, according to the Motion Picture Industry Association. The most enthusiastic of movie fans are ages 21 to 39, followed by those over 40 years old and those ages 12 to 20. Of those attending movies, 70% were white, 13% were Hispanic and 11% were African-American, according to the MPIA.

Five major players control more than 50% of the 35,000 screens in the U.S. These powerhouses have used the last two years to grow their empires. In 1997, Cineplex Odeon of Toronto and Sony Corporation’s Loews Theaters merged in a deal valued over $1 billion in September 1997. Just one month later, KKR Kohlberg Kravis paid $323 million and assumed $338 million in debt for Act III, followed closely on the heels of a deal which saw Hicks Muse pay $300 million and assume $500 million in debt for United Artists in November. The year was topped off in June when Regal purchased the 643-screen Cobb Theatre of Birmingham, AL. Another round of consolidations and mergers marked 1998. Regal Cinemas was purchased for $1.2 billion in January 1998, including $290 million in debt. The takers were Dallas-based Hicks Muse Tate & Furst, Inc. and Kohlberg Kravis Roberts & Co. with each shelling out $600 million.

The purchase was a crowning jewel for both companies as Hicks Muse also owns Act II and Kohlberg Kravis owns United Artist theaters. Hicks, Muse is a major conglomerate with real estate holdings and consumer products including Bumble Bee Tuna, Chef Boyardee, the owner of the nation’s largest radio chain, holdings in TV broadcasting, and upon its acquisition of United Artists, it became the nation’s second largest film exhibitor.

Arcades See Downturn Then Industry Explodes

While not as widespread as movie theaters, arcades have emerged as an important part of the entertainment industry. The first appeared during the 1960s when they moved from dingy street fronts to regional malls. What was once a small industry in 1975, with less than 200 major players, has since grown into a multi-billion dollar profit center fueled by location based entertainment chain expansion. Arcades were flying high in the late 70s when Bally transformed the industry from a mom and pop orientation to one of sophistication when it acquired the Aladdin’s Castle chain, then with 100+ units. Revenues were at record setting levels as the video arcade industry rang up $1 billion in sales. One year later, the industry grossed $1.5 billion in sales. Revenues continued to climb and doubled to $3 billion in 1980 and once again in 1981 with gross sales of $7 billion. Then by 1982, nearly 400,000 video arcades began to bleed red as gross sales dropped to $6 billion. Those sales dropped to $5 billion in 1983 and dwindled down to $4 billion by 1984. The entertainment industry was stymied for the next eight years.

Miniature Golf Evolves Over 100 Years

But arcades were not the only form of entertainment that attracted the masses. Miniature golf has a history rich with tradition dating back to the early 1900s when it was called garden golf. By 1930, rails and bumpers were used to confine the ball within a boundary. Following the 1929 crash, "rinky-dink golf courses" provided a haven for a less expensive form of entertainment and Americans were hooked. During the 30s, the population’s addiction to the activity led to over 150 roof top courses in New York City alone and a total of 50,000 miniature golf courses nationwide, which represented a $325 million investment. Many of these courses boasted a country club atmosphere with most staying open until 4:00 a.m. Wanamakers Department Store bought into the burgeoning trend and featured a line of golf clothing for miniature golf players. In 1953, Putt-Putt Golf Courses of America fueled a second miniature golf craze that continued through most of the 70s. In the 80s, many miniature golf courses were refurbished and expansion started up again in tourist destination areas. The 1990s added a new wrinkle to miniature golf courses, which are now being positioned as family entertainment centers housing snack bars and party rooms, while adding other components such as arcades, bumper cars and laser tag, in both bedroom communities and tourist areas. Wall Street has picked up on the success of miniature golf with several chains going public. Today, industry experts estimate that 50% of the American population plays miniature golf.