The Eaton Theatre has until now been showing movies through 35mm film that would go through the projector and show on the screen. But now, many small movie theaters across the country, similar to the Eaton Theatre, are facing a major problem; the shift to digital movies. This calls for these theaters, among many, to either switch to digital film, or stay with their current format, and go out of business in 2013. The new projectors used for digital movies cost around $65,000; a price not easily reached by these businesses. It has been confirmed that Fox, among several other movie companies, will not continue to use traditional film. However, these projectors will be cost-prohibitive if the Eaton Theatre bought one for each floor, since not as many people can be seated in the upper floor, and therefore, would not make as much money from buying two. The Eaton Theatre stands to lose over 20% of its former profit after this switch, because it will no longer profit from showing movies on the top floor, and will also not be able to show two movies simultaneously, decreasing the demand for going to this theatre.
In this situation, I believe that the best course of action would be to not only buy a digital projector for the bottom floor and continue showing new movies there, but also possibly start showing older movies on the top floor after no new movies will be released in old format, and offer them prices to see those movies at a discount, in order to reduce the amount of profit lost by the conversion to digital film.
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