Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- Figure 1: The UK cinema market size and forecast, 2005-15
- 3D boosts industry
- Box office grows as admissions slip in 2010
- Market factors
- Product is everything
- Digital conversion opens up further opportunities
- Theatrical window under pressure?
- Volatile economy is a concern
- Mixed demographic picture
- Increased device ownership opens up field for booking and promotions
- Companies, brands and innovation
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- Figure 2: Cinema market shares by number of screens, December 2010
- The big three dominate
- Market maturity encourages segmentation
- The consumer
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- Figure 3: Frequency of cinema-going, February 2011
- Most go infrequently
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- Figure 4: Agreement with statements about film and cinema, by frequency of cinema-going, February 2011
- Attitudes towards cinema worryingly negative
- Outdoor screenings and 4D receive the thumbs up
- Consumers unconvinced about worth of 3D and IMAX
- Consumers demand more choice in catering
- What we think
Issues in the Market
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- How can operators counter resistance to rising cinema admission prices?
- What are the prospects for 3D within the overall box office total?
- How can operators further develop secondary spend in the next five years?
- What would consumers like to see cinemas doing in the future?
Future Opportunities
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- Home from Home?
- Giving something back
Internal Market Environment
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- Key points
- Good product keeps people coming back
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- Figure 5: Top 20 films released in the UK and Republic of Ireland, 2009
- Figure 6: Box office results for the top 20 films released in the UK and Republic of Ireland, 2010
- Digital gathers momentum
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- Figure 7: Number of high-end digital screens in the UK, 2006-10
- The march of 3D continues on
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- Figure 8: 3D digital screens in the UK, 2006-10
- Figure 9: Top ten 3D releases, 2010
- 3D to help counter piracy?
- Shrinking window of opportunity?
- Film Council abolition could impact on UK film plc
Broader Market Environment
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- Key points
- Economic volatility continues
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- Figure 10: GDP quarterly percentage change, Q1 2004-Q1 2011
- Consumer confidence falling once more
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- Figure 11: Trends in UK consumer confidence, January 2008-April 2011
- High unemployment among 16-24s
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- Figure 12: Unemployment rate, by age group, November 2010-January 2011
- Age trends less likely to be helpful in the future
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- Figure 13: Trends in the age structure of the UK population, 2005-15
- Growth in ABs generally positive in the longer term
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- Figure 14: Forecast adult population trends, by socio-economic group, 2005-15
- Silver screen boost?
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- Figure 15: Forecast adult population trends, by lifestage, 2005-15
- Growth in online access boosts scope for migration of bookings
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- Figure 16: Device ownership trends, April 2009-December 2010
- Come rain or shine…
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- Figure 17: UK weather trends, 2006-10
- Migration boom creates demand for foreign-language films
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- Figure 18: Long-term trends in net migration to the UK, by age and gender, 1991-2009
- Figure 19: Top five foreign languages at the UK and Republic of Ireland box office, 2009
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- Figure 20: Five most common foreign nationalities in United Kingdom, July 2009-June 2010
Competitive Context
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- Key points
- Affordable escapism prevails while other sectors falter
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- Figure 21: Consumer expenditure on selected leisure activities, 2005-10
- Multichannel households growth boosts home movie viewing
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- Figure 22: UK multichannel TV households, by platform, 2005-10
- Retail and rental film market still dwarfs spending on cinema-going
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- Figure 23: Pre-recorded video and DVD industry key metrics, UK, 2005-09
- UK: Ahead of the 3D curve?
- US is largest cinema market but losing value and market share
Strengths and Weaknesses in the Market
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- Strengths
- Affordability
- Broad appeal
- High barriers to market entry
- Digitally converted estate
- Constantly evolving product
- Weaknesses
- Resistance to further price rises
- Limited scope for organic growth
- Reliance on younger consumers
- Reliance on third parties for product and promotion
- Vulnerable to shrinking theatrical window
Who’s Innovating?
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- Key points
- Vue raises the bar
- What the well-dressed cinema-goer is wearing
- First alternative content, now alternative venues
- Stepping back in time
Market Size and Forecast
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- Key points
- Market value growth continues in 2010 as admissions slip
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- Figure 24: UK cinema market, 2005-15
- Forecast
- Market value
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- Figure 25: Cinema market size forecast (value), 2005-15
- Market volume
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- Figure 26: Cinema market size forecast (volume), 2005-15
Segment Performance
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- Key points
- 3D boom boosts box office as secondary spend stalls
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- Figure 27: Breakdown of UK cinema market, 2005-10
- Summer is the key to a good year
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- Figure 28: UK cinema monthly admissions, 2005, 2007 and 2010
- Figure 29: UK cinema monthly admissions, 2005-10
- Sites decline but screen numbers grow
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- Figure 30: Trends in UK cinema sites and screens, 2005-10
- Multiplex growth continues
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- Figure 31: UK multiplex cinema development trend, 1985-2010
- Figure 32: Trends in UK cinema screens, by region, 2005-10
Market Share
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- Key points
- Odeon leads by sites and screens, Cineworld by box office
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- Figure 33: Cinema operators in the UK, by number of sites and screens, December 2010
- Figure 34: Cinema operators in the UK, by number of multiplex sites and screens, December 2010
- Vue lags behind on 3D
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- Figure 35: 35mm, 2D digital and 3D digital screens, by circuit, December 2010
Companies and Products
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- Key points
- Major circuits
- Cineworld Group plc
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- Figure 36: Financial performance of Cineworld Group plc, 2008-10
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- Figure 37: Breakdown of Cineworld Group plc’s revenue, by segment, 2009 and 2010
- Odeon & UCI Cinemas Group Ltd
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- Figure 38: Financial performance of Odeon & UCI Cinemas Group Ltd, 2007-09
- Vue Entertainment Holdings (UK) Ltd
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- Figure 39: Financial performance of Vue Entertainment Holdings (UK) Ltd, 2008-10
- National Amusements (UK) Ltd – Showcase
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- Figure 40: Financial performance of NATL Amusements (UK) Ltd, 2007-09
- City Screen Ltd
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- Figure 41: Financial performance of City Screen Ltd, 2007-09
- Apollo Cinemas Ltd
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- Figure 42: Financial performance of Apollo Cinemas Limited, 2008-10
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- Figure 43: Breakdown of Apollo Cinemas Ltd’s revenue, by segment, 2009 and 2010
- Omniplex Holdings (NI) Ltd – Ward Anderson
- Reel Cinemas
- Empire Cinemas Ltd
Brand Communication and Promotion
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- Key points
- Adspend maintained at historically high levels
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- Figure 44: Main media expenditure by UK film distributors and cinema exhibitors, by type of film certificate, 2006-10
- TV the favoured medium
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- Figure 45: UK film distributors’ media expenditure, by channel, 2006-10
- Spending big doesn’t guarantee box office success
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- Figure 46: UK film distributors – top ten advertisers, 2006-10
- 20th Century Fox shuns the norm
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- Figure 47: UK film distributors – top ten advertisers, by channel, 2010
- Cinemas opt for press
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- Figure 48: UK cinemas’ media expenditure, by channel, 2006-10
- Vue lags behind other majors in terms of main media spend
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- Figure 49: UK cinemas – top advertisers, 2006-10
- Top two take differing approaches
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- Figure 50: UK cinemas – top advertisers, by channel, 2010
How Often do People go to the Cinema?
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- Key points
- Majority go to the cinema but most do so infrequently
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- Figure 51: Frequency of cinema-going, February 2011
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- Figure 52: Frequency of cinema-going, by current financial situation, February 2011
What are Cinema-goers' Booking, Visiting and Buying Habits?
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- Key points
- Impulse visiting still most prevalent
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- Figure 53: Cinema-goers' booking, visiting and buying habits, February 2011
- Advance online bookers more likely to buy food and drink at the cinema
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- Figure 54: Cinema-goers' booking, visiting and buying habits, by most popular cinema-goers' booking, visiting and buying habits, February 2011
- Promotional days stimulate the weekend market
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- Figure 55: Cinema-goers' booking, visiting and buying habits, by next most popular cinema-goers' booking, visiting and buying habits, February 2011
- Frequent cinema-goers are the most likely to book over the phone
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- Figure 56: Cinema-goers' booking, visiting and buying habits, by most popular frequency of cinema-going, February 2011
- Figure 57: Cinema-goers' booking, visiting and buying habits, by next most popular frequency of cinema-going, February 2011
- Financial status doesn’t influence people taking in their own food and drink
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- Figure 58: Cinema-goers' booking, visiting and buying habits, by current financial situation, February 2011
Attitudes towards Films
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- Key points
- General interest in film and home viewing remain high
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- Figure 59: Attitudes towards films, February 2011
- Home viewing stimulates, rather than restricts, cinema-going
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- Figure 60: Attitudes towards films, by most popular frequency of cinema-going, February 2011
- Figure 61: Attitudes towards films, by next most popular frequency of cinema-going, February 2011
- Strugglers most likely to watch DVDs at home
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- Figure 62: Attitudes towards films, by current financial situation, February 2011
Agreement with Statements About Film and Cinema
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- Key points
- Attitudes towards cinema worryingly negative
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- Figure 63: Agreement with statements about film and cinema, February 2011
- Frequent cinema-goers just as negative
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- Figure 64: Agreement with statements about film and cinema, by most regular frequency of cinema-going, February 2011
- Figure 65: Agreement with statements about film and cinema, by next most regular frequency of cinema-going, February 2011
- Food buyers and non-buyers equally in agreement about food prices
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- Figure 66: Agreement with statements about film and cinema, by most popular cinema-goers' booking, visiting and buying habits, February 2011
- Figure 67: Agreement with statements about film and cinema, by next most popular cinema-goers' booking, visiting and buying habits, February 2011
- Taking the benefits of the home into the cinema
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- Figure 68: Agreement with statements about film and cinema, by most popular agreement with statements about film and cinema, February 2011
- Figure 69: Agreement with statements about film and cinema, by next most popular agreement with statements about film and cinema, February 2011
- Universal agreement on catering prices but ticket costs hurting strugglers
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- Figure 70: Agreement with statements about film and cinema, by current financial situation, February 2011
Attitudes towards Innovations or Improvements to the Cinema Experience
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- Key points
- The great outdoors and 4D beckon
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- Figure 71: Attitudes towards innovations or improvements to the cinema experience, February 2011
- Regular cinema-goers keenest on innovations and improvements
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- Figure 72: Attitudes towards innovations or improvements to the cinema experience, by most popular frequency of cinema-going, February 2011
- Figure 73: Attitudes towards innovations or improvements to the cinema experience, by next most popular frequency of cinema-going, February 2011
- Affluent food and drink buyers among keenest on premium innovations
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- Figure 74: Attitudes towards innovations or improvements to the cinema experience, by most popular cinema-goers' booking, visiting and buying habits, February 2011
- Figure 75: Attitudes towards innovations or improvements to the cinema experience, by next most popular cinema-goers' booking, visiting and buying habits, February 2011
What Do People Think About 3D and IMAX Films and Cinemas?
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- Key points
- Consumers falling out of love with 3D?
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- Figure 76: Attitudes towards 3D and IMAX films and cinemas, February 2011
- Scarcity of outlets biggest issue for IMAX
- Three quarters of regular cinema-goers have seen a 3D film
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- Figure 77: Attitudes towards 3D and IMAX films and cinemas, by most popular frequency of cinema-going, February 2011
- Figure 78: Attitudes towards 3D and IMAX films and cinemas, by next most popular frequency of cinema-going, February 2011
- Scope for creating value-based offer?
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- Figure 79: Attitudes towards 3D and IMAX films and cinemas, by most popular cinema-goers' booking, visiting and buying habits, February 2011
- Figure 80: Attitudes towards 3D and IMAX films and cinemas, by next most popular cinema-goers' booking, visiting and buying habits, February 2011
- 3D film-goers lukewarm about value
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- Figure 81: Attitudes towards 3D and IMAX films and cinemas, by most popular attitudes towards 3D and IMAX films and cinemas, February 2011
- Figure 82: Attitudes towards 3D and IMAX films and cinemas, by next most popular attitudes towards 3D and IMAX films and cinemas, February 2011
- Figure 83: Attitudes towards 3D and IMAX films and cinemas, by other attitudes towards 3D and IMAX films and cinemas, February 2011
- Affluence makes little difference to perceptions of 3D value
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- Figure 84: Attitudes towards 3D and IMAX films and cinemas, by current financial situation, February 2011
Attitudes towards Improvements to Cinema Catering
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- Key points
- Consumers would welcome more choice in cinema catering offers
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- Figure 85: Attitudes towards improvements to cinema catering, February 2011
- Wider range of drinks would appeal particularly to regular cinema-goers
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- Figure 86: Attitudes towards improvements to cinema catering, by most popular frequency of cinema-going, February 2011
- Figure 87: Attitudes towards improvements to cinema catering, by next most popular frequency of cinema-going, February 2011
- Great choice appeals most to advance online bookers and weekend visitors
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- Figure 88: Attitudes towards improvements to cinema catering, by most popular cinema-goers' booking, visiting and buying habits, February 2011
- Figure 89: Attitudes towards improvements to cinema catering, by next most popular cinema-goers' booking, visiting and buying habits, February 2011
Cinemas Targeting Opportunities
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- Key points
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- Figure 90: Cinemas target groups, February 2011
- Indifferent
- Demographics
- Marketing message
- Averse
- Demographics
- Marketing message
- Buffs
- Demographics
- Marketing message
- Buffs the heaviest cinema-goers
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- Figure 91: Frequency of cinema-going, by target groups, February 2011
- Buffs like to be spontaneous
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- Figure 92: Cinema-goers' booking, visiting and buying habits, by target groups, February 2011
Appendix – Market Size and Forecast
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- Figure 93: Cinema market value forecast scenarios, 2010-15
- Figure 94: Cinema market volume forecast scenarios, 2010-15
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Appendix – How Often do People go to the Cinema?
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- Figure 95: Most popular frequency of cinema-going, by demographics, February 2011
- Figure 96: Next most popular frequency of cinema-going, by demographics, February 2011
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Appendix – What are Cinema-goers' Booking, Visiting and Buying Habits?
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- Figure 97: Most popular cinema-goers' booking, visiting and buying habits, by demographics, February 2011
- Figure 98: Next most popular cinema-goers' booking, visiting and buying habits, by demographics, February 2011
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Appendix – Attitudes towards Films
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- Figure 99: Attitudes towards films, by demographics, February 2011
- Figure 100: Attitudes towards films, by most popular cinema-goers' booking, visiting and buying habits, February 2011
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- Figure 101: Attitudes towards films, by next most popular cinema-goers' booking, visiting and buying habits, February 2011
- Figure 102: Attitudes towards films, by attitudes towards films, February 2011
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Appendix – Agreement with Statements about Film and Cinema
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- Figure 103: Agreement with the statement ‘I don’t rush to see films at the cinema because they come out so quickly on DVD/film channels’, by demographics, February 2011
- Figure 104: Agreement with the statement ‘I prefer watching films in the comfort of my own home rather than going to the cinema’, by demographics, February 2011
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- Figure 105: Agreement with the statement ‘I’d like to go to the cinema more often than I do’, by demographics, February 2011
- Figure 106: Agreement with the statement ‘I’m only interested in seeing the big blockbuster films at the cinema’, by demographics, February 2011
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- Figure 107: Agreement with the statement ‘Popcorn is an essential part of the cinema experience’, by demographics, February 2011
- Figure 108: Agreement with the statement ‘The cinema is a good value trip out compared to other leisure activities’, by demographics, February 2011
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- Figure 109: Agreement with the statement ‘The food/drink is overpriced’, by demographics, February 2011
- Figure 110: Agreement with the statement ‘Tickets are becoming too expensive’, by demographics, February 2011
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- Figure 111: Agreement with statements about film and cinema, by attitudes towards films, February 2011
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Appendix – Attitudes towards Innovations or Improvements to the Cinema Experience
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- Figure 112: Most popular attitudes towards innovations or improvements to the cinema experience, by demographics, February 2011
- Figure 113: Next most popular attitudes towards innovations or improvements to the cinema experience, by demographics, February 2011
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- Figure 114: Other attitudes towards innovations or improvements to the cinema experience, by demographics, February 2011
- Figure 115: Attitudes towards innovations or improvements to the cinema experience, by attitudes towards films, February 2011
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- Figure 116: Attitudes towards innovations or improvements to the cinema experience, by most popular agreement with statements about film and cinema, February 2011
- Figure 117: Attitudes towards innovations or improvements to the cinema experience, by next most popular agreement with statements about film and cinema, February 2011
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- Figure 118: Attitudes towards innovations or improvements to the cinema experience, by most popular attitudes towards innovations or improvements to the cinema experience, February 2011
- Figure 119: Attitudes towards innovations or improvements to the cinema experience, by next most popular attitudes towards innovations or improvements to the cinema experience, February 2011
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- Figure 120: Attitudes towards innovations or improvements to the cinema experience, by other attitudes towards innovations or improvements to the cinema experience, February 2011
- Figure 121: Attitudes towards innovations or improvements to the cinema experience, by current financial situation, February 2011
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Appendix – What do People think About 3D and IMAX Films and Cinemas?
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- Figure 122: Most popular attitudes towards 3D and IMAX films and cinemas, by demographics, February 2011
- Figure 123: Next most popular attitudes towards 3D and IMAX films and cinemas, by demographics, February 2011
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- Figure 124: Other attitudes towards 3D and IMAX films and cinemas, by demographics, February 2011
- Figure 125: Attitudes towards 3D and IMAX films and cinemas, by attitudes towards films, February 2011
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- Figure 126: Attitudes towards 3D and IMAX films and cinemas, by most popular agreement with statements about film and cinema, February 2011
- Figure 127: Attitudes towards 3D and IMAX films and cinemas, by next most popular agreement with statements about film and cinema, February 2011
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- Figure 128: Attitudes towards 3D and IMAX films and cinemas, by most popular attitudes towards innovations or improvements to the cinema experience, February 2011
- Figure 129: Attitudes towards 3D and IMAX films and cinemas, by next most popular attitudes towards innovations or improvements to the cinema experience, February 2011
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- Figure 130: Attitudes towards 3D and IMAX films and cinemas, by other attitudes towards innovations or improvements to the cinema experience, February 2011
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Appendix – Attitudes towards Improvements to Cinema Catering
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- Figure 131: Most popular attitudes towards improvements to cinema catering, by demographics, February 2011
- Figure 132: Next most popular attitudes towards improvements to cinema catering, by demographics, February 2011
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- Figure 133: Other attitudes towards improvements to cinema catering, by demographics, February 2011
- Figure 134: Attitudes towards improvements to cinema catering, by attitudes towards films, February 2011
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- Figure 135: Attitudes towards improvements to cinema catering, by most popular agreement with statements about film and cinema, February 2011
- Figure 136: Attitudes towards improvements to cinema catering, by next most popular agreement with statements about film and cinema, February 2011
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- Figure 137: Attitudes towards improvements to cinema catering, by most popular attitudes towards innovations or improvements to the cinema experience, February 2011
- Figure 138: Attitudes towards improvements to cinema catering, by next most popular attitudes towards innovations or improvements to the cinema experience, February 2011
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- Figure 139: Attitudes towards improvements to cinema catering, by other attitudes towards innovations or improvements to the cinema experience, February 2011
- Figure 140: Attitudes towards improvements to cinema catering, by most popular attitudes towards 3D and IMAX films and cinemas, February 2011
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- Figure 141: Attitudes towards improvements to cinema catering, by next most popular attitudes towards 3D and IMAX films and cinemas, February 2011
- Figure 142: Attitudes towards improvements to cinema catering, by other attitudes towards 3D and IMAX films and cinemas, February 2011
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- Figure 143: Attitudes towards improvements to cinema catering, by most popular attitudes towards improvements to cinema catering, February 2011
- Figure 144: Attitudes towards improvements to cinema catering, by next most popular attitudes towards improvements to cinema catering, February 2011
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- Figure 145: Attitudes towards improvements to cinema catering, by other attitudes towards improvements to cinema catering, February 2011
- Figure 146: Attitudes towards improvements to cinema catering, by current financial situation, February 2011
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Appendix – Target Groups
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- Figure 147: Target groups, by demographics, February 2011
- Figure 148: Attitudes towards films, by target groups, February 2011
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- Figure 149: Agreement with statements about film and cinema, by target groups, February 2011
- Figure 150: Attitudes towards innovations or improvements to the cinema experience, by target groups, February 2011
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- Figure 151: Attitudes towards 3D and IMAX films and cinemas, by target groups, February 2011
- Figure 152: Attitudes towards improvements to cinema catering, by target groups, February 2011
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