Table of Contents
Overview
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- What you need to know
- Covered in this report
Executive Summary
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- 2016 unlikely to maintain the highs of 2015
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- Figure 1: UK cinema market, market value and forecast, 2011-21
- Independents increasing their share of the market
- Cineworld buys five Empire venues
- AMC to buy Odeon and UCI
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- Figure 2: Leading cinema operators in the UK, ranked by number of screens, October 2016
- Event cinema projected to grow to £1bn by 2019
- Netflix moves into cinematic space
- Technology helping increase the gap between cinemas and at-home viewing
- Brexit unlikely to have impact on cinema industry
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- Figure 3: Cinemas visited in the past 12 months, August 2016
- 3D not grown but these are valuable consumers
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- Figure 4: Type of film seen on last visit, August 2016
- Driving footfall with ‘sharing’
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- Figure 5: Interest in potential new products, August 2016
- Previously seen film trailers biggest influence on visiting
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- Figure 6: Influence on film choice, August 2016
- What we think
Issues and Insights
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- How can cinemas drive footfall?
- The facts
- The implications
- How can cinemas increase consumers’ additional spend once there?
- The facts
- The implications
- How can cinemas use 3D to their advantage?
- The facts
- The implications
The Market – What You Need to Know
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- 2016 unlikely to maintain the highs of 2015
- Steady growth forecast
- Brexit unlikely to have impact on cinema industry
- Technology continues to develop as 3D becomes 4D
- Movie goers can ‘step inside’ with VR headsets and 360 films
- Cinemas continue to be more than just a place to watch the latest films
- Social media helps to increase ‘buzz’ ahead of film releases
- iBeacon technology allows brands to engage with consumers on a new level
Market Size and Forecast
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- 2016 unlikely to maintain the highs of 2015
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- Figure 7: UK cinema market, 2011-21
- Forecast methodology
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- Figure 8: UK cinema market, forecast market value, 2016-21
- Figure 9: UK cinema market, forecast market volume*, 2016-21
Segmentation Performance
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- Admissions up for the first time in years
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- Figure 10: UK cinema market by segment, 2010-15
- Film slate more impactful than ever on admissions
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- Figure 11: UK cinema monthly admissions, 2010-15
- Figure 12: UK cinema monthly admissions, 2010-15
Market Drivers
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- Box office continues to be reliant on blockbusters
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- Figure 13: Top films by gross box office in the UK, 2010-16*
- Site numbers at all time high
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- Figure 14: UK cinema key metrics, 2010-16
- 3D and IMAX remain a small proportion of the market
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- Figure 15: Trends in the number of digital and digital 3D cinema screens in the UK, 2010-14
- Event cinema projected to grow to £1bn by 2019
- Netflix continues to dominate streaming and increases movie roll out
Key Players – What You Need to Know
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- Cineworld buys five Empire cinemas
- AMC to buy Odeon & UCI
- Independents increasing their share of the market
- Netflix brings films to the big screen
- Advertising expenditure shows signs of decline
- Spend comes from the same players
- Technology is the helping increase the gap between cinemas and at-home viewing
Market Share
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- Independents increasing their share of the market
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- Figure 16: Cinema operators in the UK, by number of sites and screens, ranked by number of screens, October 2016
- Figure 17: Cinema operators in the UK, by number of screens, 2015-2016
- Cineworld buys five Empire cinemas
- AMC to buy Odeon & UCI
Brand Communication and Promotion
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- Advertising expenditure shows signs of decline
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- Figure 18: Recorded above-the-line, online display and direct mail advertising expenditure for UK film distributors and cinemas, 2011-15
- Spend comes from the same players
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- Figure 19: Recorded above-the-line, online display and direct mail advertising expenditure by film distributors, by distributor, 2016
Launch Activity and Innovation
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- Technology continues to develop as 4D hits the mainstream
- Movie goers can ‘step inside’ with VR headsets and 360 films
- iBeacon technology allows brands to engage with consumers on a new level
- Dinner and a movie becomes dinner at the movies as cinemas continue to be more than just a place to watch the latest films
- Event cinema the fastest growing sector at the box office
- Smartphones and social media continue to add hype to film releases
- 3D cinema looks to lose the glasses
The Consumer – What You Need to Know
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- In the wake of Brexit consumers are still keen to visit the cinema
- Booking still done on day but slight increase in advance methods
- 3D not grown but these are valuable consumers
- More consumers are buying food and drink in the cinema
- Driving footfall with ‘sharing’
- Previously seen film trailers biggest influence on visiting
Cinema Visitation
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- In the wake of Brexit consumers are still keen to visit the cinema
- Young males continue to make up the majority of cinema audience
- The main cinema audience is the least loyal
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- Figure 20: Cinemas visited in the past 12 months, August 2016
Ticket Booking Method
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- Booking still done on day but slight increase in advance methods
- Smartphones under-utilised for booking tickets
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- Figure 21: How cinema tickets were booked on last visit, August 2016
Type of Film Seen
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- 3D not grown but these are valuable consumers
- Kids movies are key for 3D
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- Figure 22: Type of film seen on last visit, August 2016
Activities Done on Last Visit
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- More consumers are buying food and drink in the cinema
- Operator differences
- Parents of younger kids a prime target for food and drink purchases
- Introduce healthy food alternatives to increase non-ticket spend
- Older customers less willing to spend
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- Figure 23: Activities done on last visit, August 2016
- Younger males most likely to drink alcohol at the cinema
- Cinema is a different occasion for females
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- Figure 24: Activities done on last visit, August 2016
Interest in Potential New Products
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- Driving footfall with ‘sharing’
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- Figure 25: Interest in potential new products, August 2016
- Opportunity for location specific developments
- There is a place for premium food and drink
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- Figure 26: Interest in potential new products, August 2016
Film Choice Influence
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- Previously seen film trailers biggest influence on film choice
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- Figure 27: Influence on film choice, August 2016
- Men and women influenced in different ways
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- Figure 28: Influence on film choice by gender, August 2016
- Empire attracting a different type of consumer
Appendix – Data Sources, Abbreviations and Consumer research methodology
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- Data sources
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 29: UK cinema market, value forecast scenarios, 2016-21
- Figure 30: UK cinema market, volume* forecast scenarios, 2016-21
- Fan chart forecast
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