Issue Backgrounder Part 1
Looking into the financial relevance of Cineplex
Issue Backgrounder Part II
A SWOT analysis on Cineplex
Financial PR Artifact
My learning journey
PUBR 2845: Financial Public Relations
Issue Backgrounder - Part I
Jennifer Wai
Oct 26, 2021
SECTION A: ANNOTATED BIBLIOGRAPHY
Topic: Cineplex’s debt and pandemic recovery. My developing argument is that theatre companies such as Cineplex, still show signs of financial relevance despite the pandemic and streaming services.
Annotated Bibliography
Brenowitz, L. (2021, June 16). Cineplex likely to have starring role in post-COVID recovery. NASDAQ.
Summary: Brenowitz conducts an in-depth analysis of current Cineplex stocks in comparison to its previous pre-pandemic stocks, and uses current events concerning Cineplex to come to conclude that the stock prices will rise once again. Despite the pandemic, the author claims that many investors believe the stock will experience a 50% increase in price as restrictions ease and due to current box office success and ongoing film release schedule lined up for cinema. Additionally, the article anticipates the result of a 2.18 billion dollar lawsuit Cineplex has filed against Cineworld, if Cineplex succeeds, “investors might see the stock leap” (Brenowitz, 2021). The general consensus by analysts is to hold on to Cineplex’s stocks or even buy more (TipRanks’, 2021, as cited in Brenowitz, 2021). This article will create the foundation for why I believe that Cineplex will not die out fears of the pandemic and the competition of streaming services.
Elmashhara, M. G., & Soares, A. M. (2020). Entertain me, I’ll stay longer! The influence of types of entertainment on mall shoppers'
emotions and behaviour. The Journal of Consumer Marketing, 37(1), 87-98. https://doi.org/10.1108/JCM-03-2019-3129
Summary: Elmashhara and Soares (2020) conducted a survey-based study to test permanent entertainment’s correlation with shopper satisfaction and desire to stay in the mall. Beginning with whether or not facilities like theatres are necessary in a mall and how “the whole hedonic shopping value has a positive impact on time spent at the mall, and re-patronage intention” (Elmashhara & Soares, 2020, p. 89). The study used a filter question at the beginning of the questionnaire to filter out non-frequent shoppers at the malls they analyzed (Elmashhara & Soares, 2020, p. 91). Overall, they were able to conclude that entertainment like cinema is an essential part of the appeal of malls and affects the emotional states of shoppers. I want to use this study to argue that Cineplex will always be a prevalent placement in consumer locations like shopping malls even after COVID.
Granados, N. (2021, February 22). How will theaters and streaming services coexist after the pandemic? Forbes.
Summary: Granados predicts that theatres and streaming services will be able to coexist with each other even with a shrinking demand for in-theatre viewing. The article begins to explain how streaming achieved its popularity and uses The What if Media Group’s survey (n.d.) that discovered 30% of respondents are unlikely to return to theatres (as cited by Granados, 2021). Granados refers to Cristel Russell’s (n.d.) “2nd screen phenomenon,” social interactions serving as part of the experience in consuming media to boost box office sales (as cited by Granados, 2021). Furthermore, the majority of box office revenue occurs within 2 months after release, so adding movies to streaming services would not threaten theaters (French, n.d. as cited in Granados, 2021). I am using this article to assert why companies like Cineplex are not threatened by streaming companies despite decreased demand.
Section B: Data Tracking Appendix
The stock prices of Cineplex at the time.
Yahoo Finance. (2021). Historical data of Cineplex stock [Data set]. https://ca.finance.yahoo.com/quote/CGX.TO/history?p=CGX.TO
