Table of Contents
Executive Summary
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- Market to reach value of £1.6 billion in 2015
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- Figure 1: UK cinema market, market value and forecast, 2010-20
- ‘Big three’ operators account for over 60% of UK screens
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- Figure 2: Leading cinema operators in the UK, ranked by number of screens, September 2015
- Operators investing to maintain edge over in-home experience
- Core younger visitors under pressure and might need help
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- Figure 3: Cinemas visited in the past 12 months, August 2015
- Spontaneity rules
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- Figure 4: How cinema tickets were booked on last visit, August 2015
- More enthusiasm for advance booking incentives than apps
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- Figure 5: Advance booking and app download incentives, August 2015
- Cinema ticket and download bundle appeals to desire for ownership
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- Figure 6: Interest in potential new products, August 2015
- Flash deals could be personalised or gamified to increase engagement
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- Figure 7: Interest in smartphone/tablet communications, August 2015
- What we think
Issues and Insights
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- What can operators do to increase the number of advance bookings?
- The facts
- The implications
- Where are the opportunities to increase secondary spending?
- The facts
- The implications
The Market – What You Need to Know
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- Market to reach value of £1.6 billion in 2015
- Modest growth expected in next five years
- Higher ticket prices increase box office share of industry revenues
- Signs of recovery in secondary spending
- Seasonal nature of demand causes fluctuations in admissions
- Blockbusters crucial to driving annual box office total
- 3D still struggling to catch audience imagination
- Event cinema continues to boost cinema revenues
- Competition from streaming services intensifies
Market Size and Forecast
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- 2015 expected to see market bounce back
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- Figure 8: UK cinema market, 2010-20
- Forecast
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- Figure 9: UK cinema market, forecast market value, 2015-20
- Figure 10: UK cinema market, forecast market volume*, 2015-20
Segment Performance
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- Higher ticket prices increase box office share of industry revenues
- Signs of recovery in secondary spending
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- Figure 11: UK cinema market by segment, 2010-15
- Seasonal nature of demand causes fluctuations in admissions
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- Figure 12: UK cinema monthly admissions, 2010-14
- Figure 13: UK cinema monthly admissions, 2010-14
Market Drivers
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- Blockbusters crucial to driving annual box office total
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- Figure 14: Top films by gross box office in the UK, 2010-15*
- Site numbers begin to grow again
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- Figure 15: UK cinema key metrics, 2010-15*
- A fully digital industry
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- Figure 16: Trends in the number of digital and digital 3D cinema screens in the UK, 2010-14
- 3D still struggling to catch audience imagination
- Event cinema continues to boost cinema revenues
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- Figure 17: UK event cinema revenue breakdown by genre, by value, 2014
- Competition from streaming services intensifies
Key Players – What You Need to Know
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- Big three operators account for over 60% of UK screens
- Recorded adspend remains stable despite admission dips
- Top five distributors account for two thirds of spend
- Operators strive to maintain edge over in-home viewing
- Crowdsourcing comes to the cinema
- US operator takes unlimited concept to the extreme
Market Share
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- Big three operators account for over 60% of UK screens
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- Figure 18: Cinema operators in the UK, by number of sites and screens, ranked by number of screens, September 2015
Brand Communication and Promotion
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- Recorded adspend remains stable despite admission dips
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- Figure 19: Recorded above-the-line, online display and direct mail advertising expenditure for UK film distributors and cinemas, 2011-14
- Top five distributors account for two thirds of spend
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- Figure 20: Recorded above-the-line, online display and direct mail advertising expenditure by film distributors, by distributor, 2014
- Traditional media still dominate adspend
- Increasing loyalty seen as key
- Social media helps to create a buzz
- Methodology and coverage
Launch Activity and Innovation
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- Operators strive to maintain edge over in-home viewing
- Crowdsourcing comes to the cinema
- Lionsgate looks to capitalise on desire for exclusivity
- US operator takes unlimited concept to the extreme
- In-home competitors continue to up their game
- Netflix moves into the movie-making business
- Disney launches D2C subscription service
- Curzon continues to expand distribution platforms for Home Cinema
The Consumer – What You Need to Know
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- Core younger visitors under pressure and might need help
- Spontaneity rules
- Sizeable variations in viewer profiles for main film types
- Over half bring in food or drink from outside
- More enthusiasm for advance booking incentives than apps
- Cinema ticket and download bundle appeals to desire for ownership
- Flash deals could be personalised or gamified to increase engagement
Cinema Visiting
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- Core younger visitors under pressure and might need help
- Potential for growth in numbers of older visitors
- Cinema-goers have quite large brand repertoires
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- Figure 21: Cinemas visited in the past 12 months, August 2015
How Tickets are Booked
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- Spontaneity rules
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- Figure 22: How cinema tickets were booked on last visit, August 2015
Type of Film Seen
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- Sizeable variations in viewer profiles for main film types
- Restoring faith in 3D
- Potential to enhance upgrade options for 2D viewers
- Putting bums on seats, more comfortably
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- Figure 23: Type of film seen on last visit, August 2015
Activities Done on Last Visit
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- Over half bring in food or drink from outside
- Potential for growing concession sales to older customers
- Role of discounting set to decline?
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- Figure 24: Activities done on last visit, August 2015
- Bringing in and buying in the cinema are not mutually exclusive
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- Figure 25: Whether food and drink and drink bought in the cinema or brought in from outside, all versus those who brought it in from outside, August 2015
Advance Booking and App Download Incentives
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- More enthusiasm for advance booking incentives than apps
- A free cinema ticket is enough to persuade most to book in advance
- Free cinema ticket also most popular app incentive
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- Figure 26: Advance booking and app download incentives, August 2015
Interest in Potential New Products
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- Cinema ticket and download bundle appeals to desire for ownership
- Cinemas missing an opportunity with healthier food options
- Shorter term unlimited passes to stimulate annual pass take-up
- Potential for more quality, fresh food options in foyers?
- Crowdsourcing could be used to stimulate trade at quieter times
- Lunchtime cinema offers opportunity to test water, show short films
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- Figure 27: Interest in potential new products, August 2015
Interest in Mobile Communications
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- Flash deals could be personalised or gamified to increase engagement
- Apps with in-venue commerce capabilities could stimulate pre- and post-film purchasing
- Info provision adds value and differentiates from the in-home experience
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- Figure 28: Interest in smartphone/tablet communications, August 2015
Appendix
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- Data sources
- Abbreviations
- Market size and forecast
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- Figure 29: UK cinema market, value forecast scenarios, 2015-20
- Figure 30: UK cinema market, volume* forecast scenarios, 2015-20
- Fan chart forecast
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