Cinema Admissions Worldwide up 2% in 2007; Falling Dollar Helps Studio Revenue

http://www.digitalcinemainfo.com/dodonaresearch_06_16_08.php

 

June 16, 2008

 

Source: Dodona Research

 

The number of cinema tickets sold worldwide increased almost 2% in 2007 to 7.427 billion according to the latest issue of Cinemagoing Trends and Forecasts from Dodona Research. Box office increased nearly 10% to US$28.2 billion, helped by falling exchange rates for the US dollar.

 

The Cinemagoing Trends and Forecasts database covers 57 countries which together house 4.5 billion people. Dodona estimates that these 57 countries account for in excess of 95% of the worldwide cinema business measured by box office receipts.

 

In 2007 there were 110,457 cinema screens operating in these countries, up from 98,932 in 2002. Growth in admissions over the same period was slightly higher (11.9% compared to 11.6%) than growth in screen numbers, while box office was up a huge 38.4%, adding nearly US$8 billion to the US$20.3 billion total recorded in 2002. Although this includes the effects of inflation, Dodona observe that the improvement in facilities as a result of the introduction of modern cinemas, in emerging markets especially, has resulted in real, above-inflation increases in ticket prices being achieved.

 

The database also includes hard-to-find data relating to refreshment, or concession stand revenues in cinemas, and screen advertising. According to this data cinema-goers spent US$ 8.43 billion on refreshments in cinemas in 2007, up 39.7% from 2002. Cinema exhibitors’ receipts from screen advertising are estimated to have grown even faster, by 100.8%, to reach US$1.87 billion in 2007.

 

In the light of current difficult conditions in financial markets and the world economy, Dodona expects a less favourable picture over the next five years. 2008 is shaping up to be a fairly flat year in most territories, though China (expected to end the year up 46% in admissions), Germany and France (both expected to be up more than 7%) are notable exceptions.

 

Further out Dodona expects the introduction of 3D technology to give some impetus to the market, with the result that by 2012 admissions are expected to have risen 6.8% to almost 8 billion.

 

The fastest growing markets over the period to 2012 are forecast to be China (with admissions up 108%), the United Arab Emirates (33%), Russia (31%), Malaysia (31%) and Romania (27%). Among smaller markets, Luxembourg (where admissions could climb 50% due to the opening of a new multiplex) and Estonia (up 29% for similar reasons), will do well. Dodona predicts France will be the strongest performer among the large mature markets of Western Europe and North America, with admissions up 16% over the next five years.

 

According to Dodona Managing Director, Karsten-Peter Grummitt: “In the West, the perception is increasingly that cinema is a technology story, with profits growth only likely to come from digital cinema and 3D within an essentially mature market. But it is still also an emerging markets story, with significant gains being made in regions like Eastern Europe and parts of Asia. In fact every year that passes sees this become a more geographically diverse business and the dominance of the Hollywood studios within it a little less.”