Superior screening: Complimentary services and alternative content increase ticket prices

The Cinemas industry includes all operators that show films in designated film-projection facilities. These are mostly indoors, but some are open-air facilities. The bulk of industry revenue comes from box office sales, the majority of which are generated by blockbuster films. UK cinemas also generate revenue from screen advertising and selling drinks and snacks. The industry has grown moderately over the five years through 2018-19, as the average spend per visit has increased. Overall, industry revenue is expected to grow at a compound annual rate of 2.6% over the five years through 2018-19. In the current year, revenue is expected to rise by 0.3% to £1.6 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The weak pound is likely to constrain discretionary spending and limit growth
  • Apps and ticketing machines have reduced labour requirements for industry operators
  • Operators are expected to expand their service offerings to enhance the customer experience
  • Industry Report - Industry Key Buyers Chapter

    The industry is dominated by four large cinema chains, which together are expected to account for 84.2% of total revenue in 2018-19. As a result, the industry is considered to have a high level of market concentration. Over the next five years, these companies are expected to maintain the size of their market shares through the acquisition of existing cinemas and the continued opening of cinemas in both new regions and existing markets. These larger companies tend to have more screens per site and can show a greater range of films and other content.In 2017, 43.1% of enterprises employed fewer than five people. An estimated 35.3% of companies are medium-size firms with 10 to 99 employees. The...purchase to read more.

    Additional Insights for the Cinemas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cinemas Industry are

  • Economies of scale
  • Ability to raise revenue from additional sources
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Cinema admissions and Demand from television programming and broadcasting in the Cinemas industry impact industry performance..

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    What's in this report

    What is the Cinemas Industry?

    Cinemas show films in designated film-projection facilities, which are usually indoors but can also include open-air venues.

    Industry Products
  • Box office - top 20 films
  • Box office - all other films
  • Food, beverages and merchandise
  • Industry Activities
  • Projecting films
  • Operating open-air film projectors
  • Retailing drinks and snacks
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Cinema admissions
  • Demand from television programming and broadcasting
  • Demand from advertising agencies
  • Real household disposable income

  • Current Performance
  • Strong film support
  • Another dimension
  • Profitability and employment
  • Tackling piracy
  • Chart: Revenue Growth

  • Industry Outlook
  • A new reality
  • Improved offering
  • Access to funding
  • Table: Cinemas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cinemas Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Advertising Agencies
  • Consumers

  • Key Selling Industries
  • Confectionery Wholesaling
  • Juice, Mineral Water & Soft Drink Wholesaling
  • Office & Shop Furniture Manufacturing
  • Optical & Photographic Equipment Manufacturing

  • Products & Services
  • Box office - top 20 films
  • Box office - all other films
  • Food, beverages and merchandise
  • Other
  • Chart: Cinemas Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 15 and 24 years
  • People aged between 25 and 34 years
  • People aged between 35 and 44 years
  • People aged between 7 and 14 years
  • People aged 55 years and over
  • People aged between 45 and 54 years
  • Chart: Major Market Segmentation for the Cinemas Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitFilm hire and rental costsWagesPurchasesRent and utilitiesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Cinemas

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cinemas Industry

  • Industry Globalization
    Cineworld Group plc, ODEON & UCI Cinemas Group Ltd, Vue Entertainment Ltd, Natl Amusements (UK) Limited,
  • Table: Cineworld Group plc - financial performance
  • Table: ODEON & UCI Cinemas Group Ltd - financial performance
  • Table: Vue Entertainment Ltd - financial performance
  • Table: Natl Amusements (UK) Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cinemas Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cinemas Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Box Office Revenue
  • The value of cinema tickets sold to audiences.
  • Imax
  • A screening technique that produces an image approximately 10 times larger than that from standard 35 millimetre film
  • Multiplex Cinemas
  • Cinema sites that have five or more screens.
  • Slate
  • The list of films scheduled to be released over a certain period.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cinemas market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cinemas:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cinemas market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cinemas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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