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Final Regulatory Assessment and Final Regulatory Flexibility Analysis Final Rule - Nondiscrimination on the Basis of Disability by Public Accommodations - Movie Theaters; Movie Captioning and Audio Description

4.2.8. Zero Growth After Five Years

The projected growth rate of the number of auditoriums within each venue type is discussed in Section 3.1.3.  However, it may not be realistic to assume that the growth rates from the previous five years continue throughout the entire analysis period.  The movie industry has undergone significant changes in recent years as a result of the digital conversion, which has had an impact on the number of auditoriums opening and closing.  This sensitivity analysis assumes that the projected growth rates will continue for the first five years of the analysis, but after year five, the number of auditoriums will remain constant for the remainder of the analysis.

Table 4-22 shows the impact of altering the assumed growth rates.  Overall, the costs decrease because no new auditoriums are opening and purchasing equipment after the fifth year of the analysis.  The total costs over the 15-year period of analysis decrease to $79.9 million, a 10 percent decrease compared to the primary analysis.

Table 4-22 : Zero Growth After Five Years Sensitivity Analysis, Discounted at 7 Percent, ($ millions)


Cost Category

Zero Growth After 5 Years

Primary Analysis

Percent Change

Captioning Hardware Acquisition Costs

$11.0

$14.6

-25%

Audio Hardware Acquisition Costs

$0.4

$0.5

-13%

Captioning Device Acquisition Costs

$13.7

$15.7

-13%

Audio Device Acquisition Costs

$2.1

$2.4

-14%

Installation Costs

$0.8

$1.0

-18%

Replacement Costs

$34.8

$36.1

-4%

Training Costs

$9.6

$9.9

-4%

Maintenance and Administrative Costs

$7.5

$8.2

-9%

Total Costs

$79.9

$88.5

-10%

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