Location selection is a kind of irreversible investment that may have continuing effects on the daily management of an enterprise. The daily operations of a cinema rely especially strongly on its location, which means location must be given first priority at the initiation of a business. This dissertation mainly deals with the influence of the location decision on cinemas’ business performance. It offers a general review of relevant studies by both domestic and foreign scholars and analyzes the impact a set of factors (e.g., the grade of the commercial centers, concentration of commercial facilities, whether located in shopping malls, traffic conditions nearby, demographic factors, number of other cinemas) on the business performance of cinemas. To validate the proposed hypotheses, this study investigates the top 30 cinemas, in terms of annual box office, located in two influential circuits in Shanghai.
The results confirm nearly all the hypotheses. Factors such as the grade of commercial centers, concentration of commercial facilities, a location in shopping malls, traffic conditions, and the number of cinemas nearby have significant influences on cinema performance. However, the local population did not emerge as an influential factor.