Cinemas - UK - December 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
2019 expected to be another bumper year for the UK cinema industry
Figure 1: UK cinema market volume (admissions) forecast, 2014-24
Market value grows due to increase in retail spend per head
Figure 2: UK cinema market value forecast, 2014-24
UK cinemas saw their highest summer box office returns ever in 2019
Disney bosses the box office
Disney+ to launch in the UK in 2020
ScreenX expands its footprint in UK theatres
Companies and brands
Cineworld remains dominant UK chain
Figure 3: Cinema operators in the UK, by number of sites and screens, Q3 2019
Odeon upgrades cinemas with more ‘luxe’ 4D and IMAX formats
Everyman becomes stakeholder on British high streets
The consumer
Cineworld maintains its position as top cinema chain
Figure 4: Cinema visiting, October 2018 and September 2019
Young males are the most avid cinema-goers
Figure 5: Regularity of cinema visits for cinema-goers, by age and gender, September 2019
Most people are still watching 2D screenings
Figure 6: Type of screenings seen in last 12 months, September 2019
Expense is the main reason people don’t go to the cinema
Figure 7: Reasons for not visiting the cinema in the last 12 months, September 2019
Content still key factor for bringing in audiences
Figure 8: Reasons for visiting the cinema in the last 12 months, September 2019
Most cinema-goers think it is a good social activity
Figure 9: Attitudes towards the cinema experience, September 2019
Half would go to the cinema if tickets were cheaper
Figure 10: Motivations to visit the cinema, September 2019
What we think
ISSUES AND INSIGHTS
Promoting solo visits to the cinema can cater to an individual’s desire for escapism
The facts
The implications
Chain cinemas should further embrace their ‘blockbuster’ role
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Another strong year at the box office expected in 2019
Market value grows due to increased retail spend per head
Streaming services eye content as key battleground to compete with cinemas
Superhero and animated franchises continue to capture imagination
Advertising in cinemas hits new high as blockbuster boom increases spend in cinemas
MARKET SIZE AND FORECAST
2019 expected to be another bumper year for the UK cinema industry
Figure 11: UK cinema market volume (admissions) forecast, 2014-24
Figure 12: Cinema market volume (admissions) forecast, 2014-24
Market value grows due to increase in retail spend per head
Figure 13: UK cinema market value forecast, 2014-24
Figure 14: UK cinema market value forecast, 2014-24
Forecast methodology
MARKET SEGMENTATION
Average retail spend per head increases on the back of enhanced retail offerings
Figure 15: UK cinema market, by segment, 2014-19
Record-breaking summer months for admissions pave the way for another successful year at the box office
Figure 16: UK cinema admissions, by month, 2015-19
Cinema advertising can be a differentiator for brands
MARKET DRIVERS
Disney bosses the box office
Figure 17: Top 20 films released in the UK and Republic of Ireland, January-September 2019
Disney’s acquisition of 21st Century Fox looks to further its dominance
Superhero and animated franchises continue to capture imagination
In the medium term streaming can enhance the cinema market
Variable pricing structures result in blockbuster premium ticket price hikes
Streaming services eye content as key battleground to compete with cinemas
Netflix in standoff with defenders of the cinema space
Disney could prioritise streaming over cinema
Apple TV+ to release content in theatres
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW 
Increase in number of screens in UK
Cineworld focuses on premiumisation and technology to drive growth
Everyman eyes key stakeholder role on high streets
Vue aims to maximise revenue with enhanced retail offering
Odeon upgrades cinemas with more ‘luxe’ 4D and IMAX formats
LAUNCH ACTIVITY AND INNOVATION
New technology pushes the boundaries of the cinematic medium
Odeon Cinemas to trial phoneless cinema screenings
Event cinema continues to be a differentiator
Innovations in projection and audio technology enhance viewing experience
Google Assistant can help UK users find and book cinema tickets using only voice commands
CJ 4DPLEX further blends the theme park and cinema
Selfridges opens first permanent cinema in a department store
ADVERTISING AND MARKETING ACTIVITY
Advertising spend decreases through 2018 despite record-breaking year
Figure 18: Total above-the-line, online display and direct mail advertising expenditure for UK film distributors and cinemas, 2014-19
Figure 19: Share of recorded above-the-line, online display and direct mail advertising expenditure by film distributors, Jan-Sep 2018 and Jan-Sep 2019
Figure 20: Share of recorded above-the-line, online display and direct mail advertising expenditure by film distributors, Jan-Sep 2018 and Jan-Sep 2019
Advertising in cinemas hits new high as blockbuster boom increases spend in cinemas
Figure 21: Top advertisers in UK cinema to 17 December, 2019
Nielsen Ad Intel coverage
MARKET SHARE
Increase in number of screens from major operators
Figure 22: Major cinema operators’ sites and screens, October 2018 and October 2019
Refurbishment re-energising the cinema experience
Focus on retail can drive spend per head in theatres
Everyman eyes greater presence on high streets
THE CONSUMER – WHAT YOU NEED TO KNOW
Cineworld maintains its position as top cinema chain
Young males are the most avid cinema-goers
Standard 2D showings are still most popular type of screening
Price is the main reason people are not going to the cinema
Half would go to the cinema if tickets were cheaper
The boutique experience can be a hit with young parents
CINEMA VISITING 
Cineworld maintains its position as top cinema chain
Figure 23: Cinema visiting, October 2018 and September 2019
Young males are the most avid cinema-goers
Figure 24: Regularity of cinema visits for cinema-goers, by age and gender, September 2019
Gender differences play out across all age groups
Seniors audiences can be encouraged to take part in social activities
Family-friendly programme of content appeals
SCREENING TYPE 
Standard 2D showings still the dominant type of screening
Figure 25: Type of screenings seen in last 12 months, September 2019
Enhanced screening options appeal as a special occasion
BARRIERS TO VISITING THE CINEMA
Expense is the main reason people don’t go to the cinema
Figure 26: Reasons for not visiting the cinema in the last 12 months, September 2019
Figure 27: Repertoire of reasons for not visiting the cinema in the last 12 months, by reasons for not visiting, September 2019
Many still consider the cinema to be expensive despite the number of available deals
One in four prefer to watch films in other ways
Streaming services now compete in terms of content
Cinemas could look to forge creative partnerships with streaming services
Shared viewing experiences aren’t for everyone
See it or miss out
ATTITUDES TOWARDS VISITING THE CINEMA 
Content is key in driving visits
Cinemas can encourage young males to ‘hang solo’
Figure 28: Reasons for visiting the cinema in the last 12 months, September 2019
Higher-income households can help drive retail spend
Figure 29: Reasons for visiting the cinema in the last 12 months, by age and gender, September 2019
Immersive cinema experiences continue to capture consumers’ imagination
Figure 30: Attitudes towards cinema experience, September 2019
Cinema can be date night destination for young parents
Figure 31: Attitudes towards cinemas – CHAID – Tree output, September, 2019
MOTIVATIONS TO VISIT A CINEMA IN THE FUTURE
Price still the key driver for consumers
Women can be engaged further through emphasis on social occasion
Figure 32: Motivations to visit the cinema, September 2019
The heightened sensory experience can also appeal to families
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
CHAID analysis methodology
Figure 33: Attitudes towards cinemas – CHAID – Table output, September 2019
APPENDIX – MARKET SIZE AND FORECAST
Market Forecast
Figure 34: UK cinemas value forecast, 2019-24
Figure 35: UK cinemas volume (admissions) forecast, 2019-24
Forecast methodology