trends of cinema-going in europe and worldwide multiplexes in europe digital cinema worldwide

Trends of cinema-going in Europe and worldwide

Multiplexes in Europe

Digital Cinema worldwide

Talk by Elisabetta Brunella

Secretary General, MEDIA Salles

at the CICAE course “Art Cinemas = Action + Management”

9-18 March 2005, Venice, Italy

MEDIA Salles is an initiative of the MEDIA Progranne of the European Union with the support of the Italian Government.

MEDIA Salles is an initiative of the MEDIA Progranne of the European Union with the support of the Italian Government.

2003

• overall result –5.1% compared to 2002 from 958 to 909 million spectators

• admissions on the 5 main markets are decreasing

D: -9.1%, E: -2.3%, F: -5.6%, UK: -4.9%, I: -5.5%

• total screens in 2003: 27 243 (+2.5%)

• screens are stable in D, still growing in E (+6.8%), I (+6.4%), UK (+0.9%), F (+0.6)

CINEMA-GOING IN WESTERN EUROPE

2003:

• total admissions are decreasing: -3.9% from 102 in 2002 to 98 million spectators in 2003

• the main markets record different trends in admissions:

CZ: +13.5%, HU: -11.4%, PL: -6.7%, RO: -14.8%, TR: +0.5%

• total screens in 2003: 4 709

CINEMA-GOING IN CENTRAL

AND EASTERN EUROPE

HOW FREQUENTLY DO EUROPEANS GO TO THE CINEMA?

FREQUENCY PER CAPITA IN THE 5 MAIN MARKETS OF WESTERN EUROPE

Average frequency per capita in Western Europe in 2003:

2.32

2000 2001 2002 2003D 1,86 2,16 1,99 1,80E 3,39 3,64 3,44 3,31F 2,82 3,15 3,11 2,92I 1,70 1,82 1,82 1,71UK 2,39 2,60 2,97 2,82

0,00

1,00

2,00

3,00

4,00

2000 2001 2002 2003

D E F I UK

FREQUENCY PER CAPITA IN THE 5 MAIN MARKETS OF CENTRAL AND EASTERN EUROPE

Average frequency per capita in Central and Eastern Europe in 2003:

0.53

0,00

0,50

1,00

1,50

2,00

2000 2001 2002 2003

CZ HU PL RO TR

2000 2001 2002 2003CZ 0,85 1,01 1,05 1,19HU 1,40 1,54 1,50 1,34PL 0,54 0,72 0,70 0,66RO 0,23 0,26 0,24 0,21TR 0,39 0,38 0,32 0,32

WESTERN EUROPE vs

EASTERN and CENTRAL EUROPE

WESTERN EUROPE(18 countries)

1998 2003 var % 03/98Km2

Population 386 506 500 392 517 800 1,6%No. of cinemas 11 320 11 050 -2,4%No. of screens 22 717 27 243 19,9%Admissions 845 659 000 909 159 000 7,5%Gross Box Office (euro) 4 311 793 000 5 247 684 000 21,7%

3 671 000

2002 2003 var % 03/02Population 390 425 995 392 517 800 0,5%No. of screens 26 584 27 243 2,5%Admissions 958 436 000 909 159 000 -5,1%

WESTERN EUROPE- 2003(18 countries)

• One cinema every 332 Km2

• One screen every 135 Km2

• One cinema per 35 522 inhabitants

• One screen per 14 408 inhabitants

• Average size of cinema: 2,5 screens

• Frequency per capita: 2,32 tickets per year

• Average ticket price: 5,77 euro

CENTRAL and EASTERN EUROPE(15 countries)

1998 2003 var % 03/98

Km2

Population 185 767 328 187 058 537 0,7%No. of cinemas 3 879 3 502 -9,7%No. of screens 4 390 4 709 7,3%Admissions 98 597 000 98 486 000 -0,1%Gross Box Office (euro) 184 774 000 277 895 000 50,4%

2 022 600

2002 2003 var % 03/02Population 186 232 015 187 058 537 0,4%No. of screens 4 825 4 709 -2,4%Admissions 102 446 000 98 486 000 -3,9%

• One cinema every 578 Km2

• One screen every 430 Km2

• One cinema per 53 415 inhabitants

• One screen per 39 724 inhabitants

• Average size of cinemas: 1,3 screens

• Frequency per capita: 0,53 tickets per year

• Average ticket price: 2.82

CENTRAL and EASTERN EUROPE - 2003(15 countries)

WESTERN EUROPE vs CENTRAL and EASTERN EUROPE

• Frequency per capita in Western Europe is four times higher than in Central and Eastern Europe (2,32 vs 0,53).

• The average ticket price in Western Europe is almost double that of Central and Eastern Europe (5,77 euro vs 2,82 euro).

• In the 1998 – 2003 period, - gross box office in Central and Eastern Europe increased by 50.4%, as against the 21.7% increase recorded in Western Europe, - on the other hand, admissions in Western Europe increased by 7,5% and in Central and Eastern Europe decreased by 0,1%,- the average ticket price in Western Europe increases slightly, growing from 5,10 to 5,77 euro, as against the increase from 1,87 to about 2,82 recorded in Central and Eastern Europe.

• Western Europe has 1 screen every 14 408 inhabitants whilst Central and Eastern Europe have 1 every 39 724 inhabitants.

• The ratio of the two regions is over 2:1 (2,75).

WHICH MOVIES DO EUROPEANS WATCH AT THE CINEMA?

ADMISSIONS IN EUROPE BY FILM ORIGIN

0,0%20,0%40,0%60,0%80,0%

100,0%

1996 1997 1998 1999 2000 2001 2002 2003

US FilmsNational f ilms on their ow n marketEuropean f ilms outside their ow n marketOthers

1996 1997 1998 1999 2000 2001 2002 2003

US Films 71,6% 65,9% 77,5% 69,2% 73,3% 65,1% 70,5% 72,1%National films on their own market 17,0% 21,3% 14,4% 17,5% 15,7% 20,6% 17,9% 19,4%European films outside their own market 8,8% 10,8% 7,0% 11,3% 7,2% 10,8% 9,9% 6,3%Others 2,6% 2,0% 1,1% 2,0% 3,8% 3,5% 1,7% 2,2%

MARKET SHARES IN WESTERN EUROPE - 2003

D:gross distribution revenues FIN: percentages of admissions I: Cinetel data

0%10%20%30%40%50%60%70%80%90%

100%

B CH D DK E F FIN I IS L N NL S

Domestic f ilms European films US films Other f ilms

MARKET SHARES IN CENTRAL AND EASTERN EUROPE - 2003

CS, EE, HU, PL: new releases PL: percentage of admissions

0%

20%

40%

60%

80%

100%

CS CY CZ EE HU LT LV PL RO SK

Domestic f ilms European f ilms US films Other f ilms

• Breakdown of admissions by film origin is stronly affected by the success of US films which mantain an extremely high share of total admissions, around 70%, over the years.

• In alternative years, specifically in 1997, 1999 and 2001, Domestic films gained significant shares of admissions, as did, to a lesser extent, European films in general. Thanks to the success of a few titles, the latter managed to influence the overall market trend.

• In 2003, faced with a predominance of US films, it was mostly Domestic films that managed to play a significant role in Europe, gaining significant shares of box office (F: 34.5%, DK: 23.2%, I: 22.0%, S: 18.9%, CZ: 23.7%, CS: 18.5%, PL: 9.8%)

• Instead the market shares of non-domestic European films remain quite small.

ADMISSIONS IN EUROPE BY FILM ORIGIN

ADMISSIONS FOR DOMESTIC FILMS

GERMANY

Total admissions in 2004: 156.7 m. (+5.2%)

From TOP 10 FILMS (by admissions):

1. (T)RAUMSCHIFF SURPRISE - PERIODE 1 (D): 9 137 506 admissions

3. 7 ZWERGE (D): 6 486 540 admission5. DER UNTERGANG (D, I, A): 4 521 903 admissions

% of top 3 DOM on total admissions: 12.9%


CZECH REPUBLIC

Total admissions in 2003: 12.1m. (+13.5%)


1. PUPENDO (CZ): 958 300 admissions 5. JEDNA RUKA NETLESKÁ (CZ): 457 500 admissions 6. KAMENÁK (CZ): 417 700 admissions7. ŽELARY (CZ, A, SK): 386 800



SERBIA AND MONTENEGRO

Total admissions in 2002: 4.8 m. (-0.4%)

-15.3% (2001/2000)


1. ZONE (CS): 1 005 156 admissions (21.1% on total admissions)3. MRTAV 'LADAN (CS): 176 372 admissions 5. MALA NOCNA MUZIKA (CS): 153 687 admissions8. LAVIRINT (CS): 121 041 admissions9. JEDAN NA JEDAN (CS): 112 810


POLAND

Total admissions in 2001:

27,6 m. (+ 32,3%)


1. QUO VADIS (PL): 4 276 674 admissions2. W PUSTYNI I W PUSZCZY (PL): 2 221 137 admissions3. PRZEDWIOŚNIE (PL): 1 742 587 admissions7. WIEDZMIN (PL): 606 288 admissions


% of top 4 DOM on total admissions: 32%

Concentration of admissions on few titles

TRENDS IN CINEMA ADMISSIONS

In 2002:

CS: top 3 films = 31.9% on total admissions top 10 films = 52.1% on total admissions

PL: top 10 films = 44.6% on total admissionsEE: top 10 films = 43.2% on total admissionsUK: top 10 films = 41.9% on total admissionsCZ: top 10 films = 34.9% on total admissionsD: top 10 films = 34.3% on total admissions

CINEMA-GOING WORLDWIDE:

WESTERN EUROPE vs

INTERNATIONAL MAJOR MARKETS

CINEMA-GOING WORLDWIDE: ADMISSIONS (x 1 000 000)

NUMBER OF SCREENS

1995 1996 1997 1998 1999 2000 2001 2002 2003var% 95/03

var% 03/02

W. Europe 664,2 711,1 761,6 815,9 803,2 835,4 923,8 926,4 879,4 32,4% -5,1%

USA 1 262,6 1 338,6 1 387,7 1 480,7 1 465,2 1 420,8 1 487,3 1 639,3 1 574,0 24,7% -4,0%

Japan 127,0 119,3 140,7 153,1 144,7 135,4 163,3 160,8 162,3 27,8% 0,9%

Australia 69,0 73,9 76,0 80,0 88,0 82,0 92,5 92,5 90,0 30,4% -2,7%

Russia . . . . 24,6 30,2 36,4 40,5 68 . 67,9%

1995 1996 1997 1998 1999 2000 2001 2002 2003var% 95/03

var% 03/02

W. Europe 18 928 19 728 20 757 21 908 23 207 24 117 24 950 25 744 26 325 39,1% 2,3%

USA 27 805 29 690 31 640 34 186 37 185 37 396 36 764 35 280 35 786 28,7% 1,4%

Japan 1 776 1 828 1 884 1 993 2 230 2 524 2 585 2 635 2 681 51,0% 1,7%

Australia 1 137 1 251 1 431 1 576 1 748 1 817 1 855 1 872 1 907 67,7% 1,9%

Russia . . . . 100 130 220 350 542 . 54,9%

Russia: the number of screens refers to the theatres of new generation

WESTERN EUROPE - USA:NUMBER OF ADMISSIONS

Europe 1995 – 2003: + 32%Europe 2000 – 2003: + 5%

USA 1995 – 2003: +25%USA 2000 – 2003: +11%

,0

500,0

1 000,0

1 500,0

2 000,0

2 500,0

3 000,0

1995 1996 1997 1998 1999 2000 2001 2002 2003

W. Europe USA

WESTERN EUROPE - USA:NUMBER OF SCREENS

Europe 1995 – 2003: + 39%Europe 2000 – 2003: + 9%

USA 1995 – 2003: +29%USA 2000 – 2003: -4%

20 000

40 000

60 000

80 000

1995 1996 1997 1998 1999 2000 2001 2002 2003

W. Europe USA

2002 2003 Var. % 03/02

Single screen 1 682 1 684 0,1%

2-7 screens (Miniplex) 2 457 2 419 -1,5%

8-15 screens (Multiplex) 1 437 1 473 2,5%

16 or more screens (Megaplex) 474 490 3,4%

USA: THEATRES BY NUMBER OF SCREENS

Total number of Theatres in 2003 6.066

Source: MPAA

Single screen

2-7 screens (Miniplex)8-15 screens (Multiplex)

16 or more screens (Megaplex)

MULTIPLEXES IN EUROPE

MULTIPLEXES IN EUROPE (as at 31 October 2004)

10 160 screens

in 944 sites

in 30 countries

TREND OF NUMBER OF SCREENS IN MULTIPLEXES IN EUROPE

Screens in European multiplexes are still in the growth but more slowly:

+6.7% between 2004 and 2003

+9.5% between 2003 and 2002

The growth of screens, especially of those located in multiplexes with 9, 11, 16 screens and in megaplexes (sites

with at least 16 screens), is slowing down.

2000 2001 Var%

01/00

2002 Var%

02/01

2003 Var%

03/02

2004 Var%

04/03

8 screens 1208 1376 13,9% 1448 5,2% 1584 9,4% 1680 6,1%

9 screens 1026 1179 14,9% 1314 11,5% 1395 6,2% 1449 3,9%

10 screens 950 1070 12,6% 1260 17,8% 1310 4,0% 1390 6,1%

11 screens 407 473 16,2% 583 23,3% 693 18,9% 715 3,2%

12 screens 888 1056 18,9% 1140 8,0% 1236 8,4% 1368 10,7%

10,13 screens 182 286 57,1% 312 9,1% 338 8,3% 364 7,7%

14 screens 518 588 13,5% 686 16,7% 798 16,3% 868 8,8%

15 screens 270 300 11,1% 300 - 345 15,0% 405 17,4%

>=16 screens 601 805 33,9% 1056 31,2% 1142 8,1% 1144 0,2%

Total 6050 7133 17,9% 8099 13,5% 8841 9,2% 9383 6,1%

MULTIPLEXES IN WESTERN EUROPE: NUMBER OF SCREENS

(as at 31st October)

2000 2001 Var%

01/00

2002 Var%

02/01

2003 Var%

03/02

2004 Var%

04/03

8 screens 48 80 66,7% 128 60,0% 152 18,8% 168 10,5%

9 screens 27 54 100,0% 81 50,0% 90 11,1% 117 30,0%

10 screens 80 130 62,5% 160 23,1% 170 6,3% 180 5,9%

11 screens 22 55 150,0% 66 20,0% 66 - 44 -33,3%

12 screens 24 48 100,0% 72 50,0% 84 16,7% 96 14,3%

13 screens 26 26 - 39 50,0% 39 - 65 66,7%

14 screens 42 28 -33,3% 28 - 42 50,0% 56 33,3%

15 screens 0 0 - 0 - 15 - 15 -

>=16 screens 0 20 - 20 - 20 - 36 80,0%

Total 269 441 63,9% 594 34,7% 678 11,6% 777 13.3%

MULTIPLEXES IN CENTRAL AND EASTERN EUROPE: NUMBER OF SCREENS

(as at 31st October)

In major markets, the countries with the highest density of screens in multiplexes are United Kingdom (60.0%), Belgium (52.4%), Spain (50.5%) and Luxemburg (38.5%).

The analysis of the situation of the number of screens during the years shows that the percentage on the total of:

• the number of screens in multiplexes grows, but with decreasing rates in the last four years;

• the percentage of screens in multi-screens cinemas shows a small but constant decrease;

• the percentage of screens in single-screens cinemas records the greatest flexion.

DENSITY OF SCREENS IN MULTIPLEXES IN THE MAJOR MARKETS

The concentration of admissions in multiplexes in Europe is growing.

In 2003, in 8 countries multiplexes account for more than 50% of admissions

TREND OF NUMBER OF ADMISSIONS IN MULTIPLEXES

MULTIPLEXES IN EUROPE: CONCENTRATION OF ADMISSIONS

(Western Europe)

1998 2003A . . 48,47% 54,17% 64,12% 59,63%

B 68,21% 73,30% 75,05% 74,35% 75,90% 77,04%

CH 5,27% . 11,33% 14,00% 13,75% 17,48%

D 29,36% 32,80% 37,52% 39,74% 39,60% 40,96%

DK 16,78% 16,71% 24,97% 27,55% 30,07% 31,78%

E 29,82% 37,68% 47,56% 53,39% 59,72% 64,19%

F 30,75% 36,18% 41,15% 45,16% 47,48% 49,89%

FIN . 30,10% 36,99% 37,76% 34,84% 40,58%

I 4,32% 7,48% 13,28% 16,95% 24,86% 32,17%

L 79,74% 80,95% 78,76% 76,05% 75,04% 78,70%

N 20,61% 21,09% c. 21% 20,65% 20,19% 20,34%

NL 8,89% 11,30% 15,22% 20,23% 23,34% 30,46%

S 37,90% 38,60% 31,64% 37,84% . .

20021999 2000 2001

MULTIPLEXES IN EUROPE: CONCENTRATION OF ADMISSIONS

(Central and Eastern Europe)

1998 1999 2000 2001 2002 2003CZ 7,64% 9,43% 17,65% 28,44% 42,38% 51,74%

EE - - - 54,16% 63,88% 64,41%

HU . . . . . 45,98%

LT . . . . 34,12% 48,19%

LV - - - - - 16,70%

PL . . . . . 57,57%

RO - - 8,07% 18,61% 22,29% 24,55%

SI - - - 40,45% . 70,57%

DIGITAL CINEMA WORLDWIDE

Source: “European Cinema Yearbook – 2004 final edition”

DIGITAL SCREENS WORLDWIDE(cinemas equipped with DLP CinemaTM projector )

In the last two years digital screens ranged from

154 (February 2003) to 291 (December 2004)

+ 89%

February 2003

June 2004

December 2004

var % dec04/feb03

var % dec04/jun04

AFRICA - - 1 . .ASIA 51 110 136 167% 24%EUROPE 16 37 55 244% 49%LATIN AMERICA 7 11 11 57% -NORTH AMERICA 79 85 86 9% 1%OCEANIA 1 2 2 100% -TOTAL 154 245 291 89% 19%

In total, the most significant increase took place in the last 6 months

February 2003/June 2004 (16 months): +91 screensJune 2004/December 2004 (6 months): +46 screens

Considering figures by continent, the quickest increase was registered in Asian and European countries,

while the US, the first country equipped with digital projectors, show a much lower growth percentage.

DIGITAL SCREENS WORLDWIDE(cinemas equipped with DLP CinemaTM projector )

“Digital films: scarce but growing supply of movies in a digital format”

DIGITAL FILMS WORLDWIDE

(as at December 2004)

NOTE: films released in DLP CinemaTM technology.

1999 2000 2001 2002 2003 2004total

1999-2004Number of

films released 4 13 23 32 46 43 161

D-cinema is growing, standards are now being established,

new digital technologies can offer exhibitors new business opportunities

(both D-cinema and E-cinema):

• alternative content and film programming for specific audiences

• digital cinema advertising

NEW DIGITAL TECHNOLOGIES

DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE

Palace Cinemas, Czech Republic - Hungary

• 2 screens equipped with DLP CinemaTM projectors (Palace Slovansky Dum in Prague, MOM Park in Budapest)

• Digital Hollywood films (i.e. Finding Nemo, The Day After Tomorrow)

• Alternative contents:• Music events: David Bowie and Bon Jovi Live concerts; DVDs premiere (i.e. The Beatles – Concert for George)• Sports events: UEFA Euro 2004• DVDs projections for specialized audience: i.e Bowling a Columbine, Apocalypse Now Redux (that probably would not have been shown at the cinemas in 35mm)

Arcadia, Italy

• 2 screen equipped with DLP CinemaTM projector

• Digital Hollywood films (i.e. Atlantis: The Lost Empire, Star Wars Attack of the Clones, Pinocchio, Alien Director’s Cut, The Day After Tomorrow, I Robot, The Incredibles)

• Alternative contents:

• Music events: David Bowie Live Concert• Stanley Kubrick: A Life in Pictures • Star Wars Episode II - Attack of the Clones - making of


Kinepolis Group, Belgium

“A strategic choice: digital as an added value and

a competitive advantage”

• 10 screens equipped with DLP CinemaTM projectors in Belgium

• Digital Hollywood films (i.e. Finding Nemo, Brother Bear)

• Alternative contents: • digital previews of Aspe series, a popular weekly TV movie series

• broadcast of TV News• special digital screenings of local productions for the young audience (Plop en de Toverstaf)

• broadcast of prestigious events and concerts


Utopia Group, Belgium, Luxembourg, The Netherlands, France

10 screens were recently equipped with DLP CinemaTM projectors in 3 countries:

- BELGIUM: 2 screens in Utopolis Mechelen, 2 screens in Utopolis Turnhout (October-November 2004)

- LUXEMBOURG: 3 screens in Utopolis Luxembourg (March-October 2004)

- THE NETHERLANDS: 3 screens in Utopolis Almere (November 2004)


UK Film Council, United Kingdom

Digital Screen Network:

the world’s first large scale digital screen network with the aim of improving access to specialised films and broadening the range of

films available to audiences throughout the UK.

UK Film Council has recently selected Arts Alliance Digital Cinema to install and run the Digital Screen Network: AADC will provide a network of up to 250

screens throughout the UK, covering installation, training, servicing, warranties and upgrades. Each cinema will guarantee a minimum number of specialised (art-house/foreign language) film screenings a week in return for the equipment.

AADC will also be able to create digital cinema masters for specialised film content and to deliver them to cinemas at a pre-agreed price.


• Leading Norwegian cinema advertising company: conversion of its Scandinavian network to satellite deilvered e-cinema projection, developing a larger base of advertising clients and offering exhibitors a reduction of reel-assembly time and more flexibility.

Carlton Screen Advertising, UK

• Leading UK cinema advertising company: investment in digital advertising to distribute digital video contents via satellite to the cinemas.

Capa, Norway


Regal CineMedia, US

• Digital Content Network (DCN): the world’s largest digital network for the delivery (via satellite) of on-screen and in-lobby marketing and advertising products as well as digital video contents to over 5,000 Regal Cinemas’ screens in US:

• delivery of “The 2wenty”, the Regal CineMedia 20-minute pre-show programme offering advertising and entertainment,

• delivery of alternative contents (HD format): simulcasting of live music concerts and events, delivery of educational, entertainment and sports programming.

DIGITAL PROJECTION: WHAT’S GOING ON WORLDWIDE

China vs India Digital vs Electronic

CHINA: fast growth of d-cinemasd-cinemas, supported by local authorities:

55 D-cinemas and screens as at June 2004, 67 D-cinemas and 74 screens as at December 2004.

INDIA: the world’s largest digital theatre country with around

130 e-cinemase-cinemas in small towns and rural areas.

DIGITAL PROJECTION: WHAT’S GOING ON WORLDWIDE

“DigiTraining PlusDigiTraining Plus:New Technologies

for European Cinemas”

6 - 10 April 2005, Kuurne, Belgium

in collaboration with

The second edition of the course devoted to digital cinema specifically addressing European cinema exhibitors

and with ANEC, FICE, ADN, ProjectScope

http://www.barco.com/

MAIN TOPICS

• Introduction and general overview of the international market of digital projection: number of digital installations worldwide, digital products, main operators, comparison between EU, US and Asian markets, the most recent updates on the market.

• E-cinema and D-cinema.

• The point of view of distribution on digital projection.

• Analysis of significant cases: the experiences of independent European companies and international companies.

• Content: distribution of digital content, alternative content, advertising.

• Technical overview: projectors e servers, sound systems, installation and monitoring, anti-piracy measures.

• Demo of digital screening: from high-definition tv to digital cinema.

• Visit to a cinema with digital installation.

“DigiTraining Plus: New Technologies for European Cinemas”

The application form, the provisional programme and general information on the course are available on

the MEDIA Salles’ website:

www.mediasalles.itCourse fee

• 400 euro for enrolments within 21 March • 500 euro for enrolments after 21 March

(covering tuition, teaching material, 4-nights accommodation and meals)

“DigiTraining Plus: New Technologies for European Cinemas”

The Course Report of the 2004 edition

is already available on the MEDIA Salles’ website Including the course programme, the speakers’

presentations, the participants’ comments, data on digital cinema-going worldwide.

“DigiTraining Plus: New Technologies for European

Cinemas”

31 March – 4 April 2004, Kuurne, Belgium

www.mediasalles.it

For further information:

[email protected]

trends of cinema-going in europe and worldwide multiplexes in europe digital cinema worldwide

Documents

main markets of central

trends of cinema

media progranne

total admissions

total screens

media sallesat

spectators admissions

italian government