High: This is unlikely to change unless authorized by corporate. Movies are also produced typically by the same few studios. This allows suppliers to have a high bargaining power. There are limited options regarding suppliers. Bargaining Power of Suppliers (which would be film distributors) has the ability to decrease the profitability of a theatre by raising costs or reducing quality. When compare the number of movie theatres to the number of movie studios producing new movies, it is clear that theatre are many more movie theatres as opposed to movie studios. These give film distributors such as movie studios a medium to high bargaining power. It is an absolute necessity for theatres to maintain good relationships with movie studios so that new films can be debuted at their location, since a large portion of revenue is generated when a movie is first released. For the reason, relations with suppliers are extremely important to the theatres business.