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?