|Last Quarterly Update:||10/7/2013|
|SIC Codes:||7993, 7996|
|Industry Overview||Trends & Challenges||Industry Forecast|
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Companies in this industry operate amusement parks or arcades. Major amusement park companies include Walt Disney, Six Flags, and Universal Parks & Resorts (all based in the US), as well as Compagnie des Alpes (France), Merlin Entertainments (UK), and Parques Reunidos (Spain); major arcade operators (all based in the US) include Namco Cybertainment, Dave & Buster's, and CEC Entertainment (Chuck E Cheese's).
Amusement parks generate about $25 billion in sales worldwide. Besides the US, the countries with the most popular attractions as measured by attendance include Japan, France, Hong Kong, and South Korea.
The US amusement parks and arcades industry includes about 3,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $16 billion.
Demand is closely linked to the health of the economy, especially consumer income. The profitability of individual companies depends on good marketing. Large companies can more easily build expensive rides and have economies of scale in operations and advertising. Smaller companies can compete by serving smaller markets or offering special rides. The US industry is highly concentrated: the 50 largest companies generate about 85 percent of revenue.
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Amusement parks get about 55 percent of their revenue from admissions and about 30 percent from food and merchandise sales. The remainder is made from a mix of parking fees, commission income from third-party exhibitors, advertising, and fees for hosting parties and other events. Many ...
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