Abstract
Despite an increasingly competitive environment, cinema continues to find new ways to attract audiences and break records. July 2007, for example, saw a huge surge in admissions as people sought refuge from the wet weather to see the latest blockbusters. Although audience numbers fluctuate annually, largely due to the popularity of the films on release, cinemas are becoming adept at driving up revenue, while digital screens are allowing cinemas to experiment with the entertainment they can offer.
Following a disappointing turnout in 2006, cinema admissions rose again in 2007, to 162 million.
There are now more screens than ever before - up to 3,596 at the end of 2007 - with 72% of these being multiplex screens. Cinema remains an incredibly popular pastime - almost all 7-14-year-olds have been to the cinema at some point in the previous year, while two thirds of adults can be called cinema-goers. In addition, a third of UK cinema-goers would like to go more often than they do.
This report explores the hypothesis that: “although cinemas face greater competition than ever before, opportunities still exist to increase revenue and attract new audiences, through the use of new technology and by widening customer choices.”
Main themes of the report:
- Who are cinemas' main competitors? What impact do piracy and the shortening theatrical window have on revenues?
- What new developments are there in cinema sites?
- How are digital screens changing the cinema-going experience?
- Who visits the cinema and how often?
- What are people' s film-watching habits and who prefers TV/DVDs?
- What do people think of cinema refreshments and who buys them?
- Given economic uncertainty in the UK, do people think that the cinema is good value or that tickets are too expensive?
- How can people' s attitudes towards cinema be used to drive up revenue?
Table of Contents
- Issues in the Market
- Main issues
- Definition
- Abbreviations
- Market in Brief
- Stiff competition but cinema fights back
- Hollywood or bust
- And the film is showing at...
- Audience particulars
- Habits and attitudes
- Internal Market Environment
- Key points
- Box office gold
- Top films in 2006
- Figure 1: Box office results for the top 20 films released in the UK and
RoI in 2006
- Top films in 2007
- Figure 2: Box office results for the top 20 films released in the UK and
RoI in 2007
- Top 20 films of the last decade
- Figure 3: Top 20 films at the UK box office, 1998-2007
- The piracy problem
- The future is digital
- The disappearing theatrical window
- Little impact as yet
- Whether the weather
- Broader Market Environment
- Key points
- Credit crunch still biting
- The UK' s getting older
- ABs enjoy cinema
- Multicultural Britain
- Foreign films at the UK box office
- Figure 4: Top five foreign languages at the UK box office, 2006
- Competitive Context
- Key points
- Cinema continues to hold its own
- Figure 5: Consumer expenditure on selected leisure goods and activities,
2002-07
- DVD vs film vs cinema
- Attitudes towards DVDs and the cinema
- Figure 6: Attitudes towards films, September 2007
- Who likes to watch where
- Figure 7: Attitudes towards films, by demographic profile, September 2007
- TV sets getting bigger and better
- Figure 8: TV set specifications, 2003-07
- Figure 9: TV type, 2006 and 2007
- Digital channels and extra services
- DTV has something for everyone
- Figure 10: Reception of satellite, cable or digital TV in the home, by
demographic sub-group, 2003-07
- Broadband opens up even more competition
- Figure 11: Selected activities done through PC in the last 12 months, by
demographic sub group, June 2007
- Strengths and Weaknesses in the Market
- Strengths
- Great films
- The might of Hollywood
- Investment activity
- New technology
- Media interest
- Weaknesses
- Intense competition
- Dependent on film quality
- Investment required
- A perception of value
- Piracy
- Market Size and Forecast
- Key points
- Steadily rising turnover despite fluctuating admissions
- Figure 12: UK cinema market, 2003-13
- Revenues flat in 2004-06
- Recovery apparent in 2007
- Fighting back in the future?
- Population trends could spark downturn in value
- Escalation of ticket costs to hit admissions
- Figure 13: Increase in current value of cinema sales, 2003-08 and 2008-13
- Figure 14: Increase in real value of cinema sales, 2003-08 and 2008-13
- Factors used in the forecast
- Segment Performance
- Key points
- Additional spend increases ahead of ticket prices
- Figure 15: Breakdown of UK cinema turnover, 2003-07
- Advertising revenue on the increase
- Figure 16: Cinema advertising revenue*, 2003-07
- July 2007 -- the best month ever
- Figure 17: UK cinema monthly admissions, 2003-07
- Average sales per site on the increase
- Figure 18: Trends in UK cinema site and screen numbers, 2003-07
- The multiplex monster keeps on growing
- Figure 19: UK multiplex development, 1985-2007
- Scotland losing its cinemas
- Figure 20: Trends in cinema screens, by region, 2003-07
- Market Share
- Key points
- Three majors in the cinema market
- Figure 21: Cinema operators in the UK, by number of sites and screens,
December 2007
- Majors dominate multiplex market
- Figure 22: Cinema operators in the UK, by number of multiplex sites and
screens, December 2007
- Brand Communication and Promotion
- Key points
- Hurray for Hollywood
- Distributors do the lion' s share
- Figure 23: Main media expenditure, by UK film distributors and cinema
exhibitors, 2003-07*
- UK film distributors
- Figure 24: Media expenditure, by channel, 2005-07
- UK film distributors -- top ten advertisers
- Figure 25: UK film distributors -- top ten advertisers, 2003-07*
- UK film distributors -- top ten advertisers by channel
- Figure 26: UK film distributors -- top ten advertisers, by channel, 2007
- Examples of promotional initiatives in 2007
- UK cinemas
- Figure 27: UK cinemas' media expenditure, by channel, 2005-07
- UK cinemas -- top ten advertisers
- Figure 28: UK cinemas -- top ten advertisers, 2003-07
- UK cinemas -- top ten advertisers, by channel
- Figure 29: UK cinemas -- top ten advertisers, by channel, 2007
- Examples of promotional initiatives in 2007
- Companies and Products
- Key points
- Major circuits
- Odeon
- Key financials
- Figure 30: Odeon, key financials for the period ended 31 December 2006
- Developments
- Company strategy and future outlook
- Cineworld
- Key financials
- Figure 31: Cineworld, key financials, 2006 and 2007
- Developments
- Company strategy and future outlook
- Vue
- Key financials
- Figure 32: Vue Entertainment Investment Limited, key financials, 2007
- Developments
- Company strategy and future outlook
- Other circuits (50+ screens)
- Showcase Cinemas
- Empire Cinemas
- Apollo Cinemas
- City Screen/Picturehouse
- Frequency of Cinema Visiting
- Key points
- Almost all 7-14-year-olds are cinema-goers
- Figure 47: Been to the cinema in the past year -- 7-14-year-olds, 2003-07
- Two fifths of 7-10-year-olds have visited in last month
- Figure 48: When last visited the cinema -- 7-10-year-olds, 2007
- Under-20s more likely to be frequent attendees
- Figure 49: How often 11-14-year-olds and 15-19-year-olds go to the
cinema, 2007
- Two thirds of UK adults are cinema-goers
- Figure 50: Cinema visiting, February 2008
- Age and social class the key determinants
- Are the 45-54s losing interest?
- Figure 51: Agreement with statement ' never visit the cinema' , by age and
lifestage, 2004-08
- The enthusiasm of youth
- Evidence of less frequent attendance
- Figure 52: Frequency of cinema attendance, by age, 2004 and 2008
- Cinema and Film-watching Habits
- Key points
- Box office still best for cinema-goers
- Figure 53: Cinema-going/film-watching habits, February 2008
- Cinema-goers' habits
- Popcorn favoured by youngsters
- Infrequent attendees show less enthusiasm for the cinema experience
- Figure 54: Cinema-going/film-watching habits, by frequency of going to
the cinema, February 2008
- Refreshments less popular during the week
- Figure 55: Cinema-going/film-watching habits, by most popular other
cinema-going/film-watching habits, February 2008
- Advanced booking could increase concession sales
- Figure 56: Cinema-going/film-watching habits, by next most popular other
cinema-going/film-watching habits, February 2008
- Appendix: Broader Market Environment
- PDI and consumer expenditure
- Figure 67: Trends in personal disposable income and consumer
expenditure, 2003-13
- Age and lifestage structure of the population
- Figure 68: Trends in the age structure of the UK population, by gender,
2003-13
- Figure 69: Forecast adult population trends, by lifestage, 2003-13
- Socio-economic structure of the population
- Figure 70: Forecast adult population trends, by socio-economic group,
2003-13
- Appendix: Frequency of Cinema Visiting
- Figure 71: Frequency of visiting the cinema, by demographic sub-group,
February 2008
- Appendix: Cinema and Film-watching Habits
- Figure 72: Most popular cinema-going/film-watching habits amongst
cinema-goers, by demographic sub-group, February 2008
- Figure 73: Next most popular cinema-going/film-watching habits amongst
cinema-goers, by demographic sub-group, February 2008
- Figure 74: Eating and drinking in the cinema, by demographic sub-group,
February 2008
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