Flood of new screens in Central Europe will float admissions to new highs

http://www.digitalcinemainfo.com/dodonaresearch_07_14_09.php

July 14, 2009

Source: Dodona Research

More than 72 million cinema-goers spent €287 million visiting cinemas in Central Europe in 2008 according to a new report* from analysts Dodona Research. The 3,157 screens in these countries (Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia) are roughly equivalent to the number in Canada or Japan, though not yet generating similar levels of box office, due to lower ticket prices and capacity utilisation.

But unprecedented levels of investment could change this situation. Noting that the current stated plans of exhibitors active in the region are even more ambitious, Dodona estimates that the number of cinema screens in Bulgaria could double by 2013, while in Romania today's screen count of 122 is expected to expand to 350 by the same date. According to report author, Alisdair Ritchie: 'In the 20 years that our firm has been monitoring the cinema market, right from the start of the multiplex boom, there has never before been expansion in any country of this scale and rapidity. Obviously there are dangers in such breakneck expansion, but on balance a nation of more than 20 million people can probably absorb the new screens.'

Thus admissions in Romania are forecast to climb from 3.46 million in 2008 to 9.5 million by 2013. By the latter year a number of countries in the region are expected to see per capita levels of attendance on a par with some much richer Western European countries. The 1.5 cinema visits per head of population expected in the Czech Republic, Hungary and Slovenia by 2013 compare with simlar levels today in Germany, the Netherlands and Portugal – and a figure of around one in Greece.

The report also notes that Central Europe has, following a slow start, joined the digital cinema bandwagon. As elsewhere, the potential of 3D movies is what is mostly driving new digital installations. However, two exhibitors – the Czech, Hungarian and Slovak circuit Palace Cinemas, and Multikino in Poland - have announced their intention to convert their entire circuits to digital projection, which may prove the catalyst for a movement towards complete conversion in some countries of the region.

By 2013 the analysts expect 20 million more cinema-goers than last year and for these 92 million visitors to spend 20% more per ticket purchased – an uplift helped by the premiums introduced for tickets to 3D performances. These are expected to add 6% or more to box office from 2009 onwards.

*Cinemagoing Central Europe £995 from Dodona Research for more information and to buy now (mention Digital Cinema Buyers Guide)