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Cinemas - UK - November 2016

Published By :

Mintel

Published Date : Nov 2016

Category :

Lifestyle

No. of Pages : N/A

The industry as a whole is looking in good stead to continue to grow as more and more innovation from technology and the independent sector keep movie goers keen to visit the cinema. Developments in 3D and 4D technology are likely to draw in crowds of children and hard-core movie fans, while the growth of event cinema and diverse food and drink offerings provided by independents means cinema is becoming a destination for consumers who are not typical cinema fans. All of these have a higher ticket price than standard cinemas, so this will help to keep the industry buoyant.

Table of Contents

OVERVIEW
What you need to know
Covered in this report

EXECUTIVE SUMMARY
2016 unlikely to maintain the highs of 2015
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
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
Figure 3: Cinemas visited in the past 12 months, August 2016
3D not grown but these are valuable consumers
Figure 4: Type of film seen on last visit, August 2016
Driving footfall with ‘sharing’
Figure 5: Interest in potential new products, August 2016
Previously seen film trailers biggest influence on visiting
Figure 6: Influence on film choice, August 2016
What we think

ISSUES AND INSIGHTS
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
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
2016 unlikely to maintain the highs of 2015
Figure 7: UK cinema market, 2011-21
Forecast methodology
Figure 8: UK cinema market, forecast market value, 2016-21
Figure 9: UK cinema market, forecast market volume*, 2016-21

SEGMENTATION PERFORMANCE
Admissions up for the first time in years
Figure 10: UK cinema market by segment, 2010-15
Film slate more impactful than ever on admissions
Figure 11: UK cinema monthly admissions, 2010-15
Figure 12: UK cinema monthly admissions, 2010-15

MARKET DRIVERS
Box office continues to be reliant on blockbusters
Figure 13: Top films by gross box office in the UK, 2010-16*
Site numbers at all time high
Figure 14: UK cinema key metrics, 2010-16
3D and IMAX remain a small proportion of the market
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
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
Independents increasing their share of the market
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
Advertising expenditure shows signs of decline
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
Figure 19: Recorded above-the-line, online display and direct mail advertising expenditure by film distributors, by distributor, 2016

LAUNCH ACTIVITY AND INNOVATION
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
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
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
Figure 20: Cinemas visited in the past 12 months, August 2016

TICKET BOOKING METHOD
Booking still done on day but slight increase in advance methods
Smartphones under-utilised for booking tickets
Figure 21: How cinema tickets were booked on last visit, August 2016

TYPE OF FILM SEEN
3D not grown but these are valuable consumers
Kids movies are key for 3D
Figure 22: Type of film seen on last visit, August 2016

ACTIVITIES DONE ON LAST VISIT
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
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
Figure 24: Activities done on last visit, August 2016

INTEREST IN POTENTIAL NEW PRODUCTS
Driving footfall with ‘sharing’
Figure 25: Interest in potential new products, August 2016
Opportunity for location specific developments
There is a place for premium food and drink
Figure 26: Interest in potential new products, August 2016

FILM CHOICE INFLUENCE
Previously seen film trailers biggest influence on film choice
Figure 27: Influence on film choice, August 2016
Men and women influenced in different ways
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
Data sources
Abbreviations
Consumer research methodology

APPENDIX – MARKET SIZE AND FORECAST
Figure 29: UK cinema market, value forecast scenarios, 2016-21
Figure 30: UK cinema market, volume* forecast scenarios, 2016-21
Fan chart forecast

List of Table

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