The popularity of 3-D films boosts ticket sales and industry revenue
London, United Kingdom (PRWEB) May 26, 2012
Cinemas have greatly benefited from the surge in popularity of 3-D films since 2009. Cinemas that show 3-D films have been able to charge higher viewing prices and receive additional income from selling or renting 3-D glasses. According to IBISWorld industry analyst Alen Allday, “this has contributed to the industry defying the economic slowdown in the past few years:. Cinema attendance numbers have generally increased over the past five years, but at a lower rate than industry revenue. Following steady growth in cinema attendance from 2007 to 2009, visits declined by 2.4% in 2010-11 with further falls of 0.5% anticipated in 2012-13. These declines are due to a lag effect from the recession, higher prices, fewer major films released during the year, and increased substitute entertainment products. Steady increases in previous years were due to competitive pricing and the popularity of several film releases during each year. Ticket prices have generally increased, especially with the growing popularity of 3-D films. Revenue is estimated to increase by an average 5.6% per annum in the five years through 2012-13.
Allday adds, “industry revenue is forecast to continue to increase at a low rate on average in future years due to flat attendance levels and low pricing growth”. This will be despite the continued release of major films and sequels, and a greater number of 3-D films. In the next five years to 2017-18, industry revenue is forecast to increase only marginally.
The Cinemas industry has a high level of market share concentration. The industry is dominated by three large cinema chains, Cineworld Group, ODEAN & UCI and Vue Entertainment Group. They have increased their combined market share levels in the past five years through organic growth and acquisitions. Over the next five years, these companies are expected to continue to increase market share through further acquisitions of existing cinemas and the continued opening of cinemas in both new regions and existing markets. These larger companies have installed digital screens and 3-D screens, which allows them to attract a wider range of customers and charge higher prices.
For more information on the Cinemas industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Cinemas show movies and motion pictures in designated film projection facilities, which are usually indoors but can also include open-air showings. This industry also includes cine-club activities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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