Cinemas - UK - May 2008

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Stiff competition but cinema fights back
• Hollywood or bust
• And the film is showing at...
• Audience particulars
• Habits and attitudes
• Internal Market Environment
• Key points
• Box office gold
• Top films in 2006
  • Figure 1: Box office results for the top 20 films released in the UK and RoI in 2006
• Top films in 2007
  • Figure 2: Box office results for the top 20 films released in the UK and RoI in 2007
• Top 20 films of the last decade
  • Figure 3: Top 20 films at the UK box office, 1998-2007
• The piracy problem
• The future is digital
• The disappearing theatrical window
• Little impact as yet
• Whether the weather
• Broader Market Environment
• Key points
• Credit crunch still biting
• The UK' s getting older
• ABs enjoy cinema
• Multicultural Britain
• Foreign films at the UK box office
  • Figure 4: Top five foreign languages at the UK box office, 2006
• Competitive Context
• Key points
• Cinema continues to hold its own
  • Figure 5: Consumer expenditure on selected leisure goods and activities, 2002-07
• DVD vs film vs cinema
• Attitudes towards DVDs and the cinema
  • Figure 6: Attitudes towards films, September 2007
• Who likes to watch where
  • Figure 7: Attitudes towards films, by demographic profile, September 2007
• TV sets getting bigger and better
  • Figure 8: TV set specifications, 2003-07
  • Figure 9: TV type, 2006 and 2007
• Digital channels and extra services
• DTV has something for everyone
  • Figure 10: Reception of satellite, cable or digital TV in the home, by demographic sub-group, 2003-07
• Broadband opens up even more competition
  • Figure 11: Selected activities done through PC in the last 12 months, by demographic sub group, June 2007
• Strengths and Weaknesses in the Market
• Strengths
• Great films
• The might of Hollywood
• Investment activity
• New technology
• Media interest
• Weaknesses
• Intense competition
• Dependent on film quality
• Investment required
• A perception of value
• Piracy
• Market Size and Forecast
• Key points
• Steadily rising turnover despite fluctuating admissions
• Figure 12: UK cinema market, 2003-13
• Revenues flat in 2004-06
• Recovery apparent in 2007
• Fighting back in the future?
• Population trends could spark downturn in value
• Escalation of ticket costs to hit admissions
  • Figure 13: Increase in current value of cinema sales, 2003-08 and 2008-13
  • Figure 14: Increase in real value of cinema sales, 2003-08 and 2008-13
• Factors used in the forecast
• Segment Performance
• Key points
• Additional spend increases ahead of ticket prices
  • Figure 15: Breakdown of UK cinema turnover, 2003-07
• Advertising revenue on the increase
  • Figure 16: Cinema advertising revenue*, 2003-07
• July 2007 -- the best month ever
  • Figure 17: UK cinema monthly admissions, 2003-07
• Average sales per site on the increase
  • Figure 18: Trends in UK cinema site and screen numbers, 2003-07
  • The multiplex monster keeps on growing
  • Figure 19: UK multiplex development, 1985-2007
• Scotland losing its cinemas
  • Figure 20: Trends in cinema screens, by region, 2003-07
• Market Share
• Key points
• Three majors in the cinema market
  • Figure 21: Cinema operators in the UK, by number of sites and screens, December 2007
• Majors dominate multiplex market
  • Figure 22: Cinema operators in the UK, by number of multiplex sites and screens, December 2007
• Brand Communication and Promotion
• Key points
• Hurray for Hollywood
• Distributors do the lion' s share
  • Figure 23: Main media expenditure, by UK film distributors and cinema exhibitors, 2003-07*
• UK film distributors
  • Figure 24: Media expenditure, by channel, 2005-07
• UK film distributors -- top ten advertisers
  • Figure 25: UK film distributors -- top ten advertisers, 2003-07*
• UK film distributors -- top ten advertisers by channel
  • Figure 26: UK film distributors -- top ten advertisers, by channel, 2007
• Examples of promotional initiatives in 2007
• UK cinemas
  • Figure 27: UK cinemas' media expenditure, by channel, 2005-07
• UK cinemas -- top ten advertisers
  • Figure 28: UK cinemas -- top ten advertisers, 2003-07
• UK cinemas -- top ten advertisers, by channel
  • Figure 29: UK cinemas -- top ten advertisers, by channel, 2007
• Examples of promotional initiatives in 2007
• Companies and Products
• Key points
• Major circuits
• Odeon
• Key financials
  • Figure 30: Odeon, key financials for the period ended 31 December 2006
• Developments
• Company strategy and future outlook
• Cineworld
• Key financials
  • Figure 31: Cineworld, key financials, 2006 and 2007
• Developments
• Company strategy and future outlook
• Vue
• Key financials
  • Figure 32: Vue Entertainment Investment Limited, key financials, 2007
• Developments
• Company strategy and future outlook
• Other circuits (50+ screens)
• Showcase Cinemas
• Empire Cinemas
• Apollo Cinemas
• City Screen/Picturehouse
• Frequency of Cinema Visiting
• Key points
• Almost all 7-14-year-olds are cinema-goers
  • Figure 47: Been to the cinema in the past year -- 7-14-year-olds, 2003-07
• Two fifths of 7-10-year-olds have visited in last month
  • Figure 48: When last visited the cinema -- 7-10-year-olds, 2007
• Under-20s more likely to be frequent attendees
  • Figure 49: How often 11-14-year-olds and 15-19-year-olds go to the cinema, 2007
• Two thirds of UK adults are cinema-goers
  • Figure 50: Cinema visiting, February 2008
• Age and social class the key determinants
• Are the 45-54s losing interest?
  • Figure 51: Agreement with statement ' never visit the cinema' , by age and lifestage, 2004-08
• The enthusiasm of youth
• Evidence of less frequent attendance
  • Figure 52: Frequency of cinema attendance, by age, 2004 and 2008
• Cinema and Film-watching Habits
• Key points
• Box office still best for cinema-goers
  • Figure 53: Cinema-going/film-watching habits, February 2008
• Cinema-goers' habits
• Popcorn favoured by youngsters
• Infrequent attendees show less enthusiasm for the cinema experience
  • Figure 54: Cinema-going/film-watching habits, by frequency of going to the cinema, February 2008
• Refreshments less popular during the week
  • Figure 55: Cinema-going/film-watching habits, by most popular other cinema-going/film-watching habits, February 2008
• Advanced booking could increase concession sales
  • Figure 56: Cinema-going/film-watching habits, by next most popular other cinema-going/film-watching habits, February 2008
• Appendix: Broader Market Environment
• PDI and consumer expenditure
  • Figure 67: Trends in personal disposable income and consumer expenditure, 2003-13
• Age and lifestage structure of the population
  • Figure 68: Trends in the age structure of the UK population, by gender, 2003-13
  • Figure 69: Forecast adult population trends, by lifestage, 2003-13
• Socio-economic structure of the population
  • Figure 70: Forecast adult population trends, by socio-economic group, 2003-13
• Appendix: Frequency of Cinema Visiting
  • Figure 71: Frequency of visiting the cinema, by demographic sub-group, February 2008
• Appendix: Cinema and Film-watching Habits
  • Figure 72: Most popular cinema-going/film-watching habits amongst cinema-goers, by demographic sub-group, February 2008
  • Figure 73: Next most popular cinema-going/film-watching habits amongst cinema-goers, by demographic sub-group, February 2008
  • Figure 74: Eating and drinking in the cinema, by demographic sub-group, February 2008