Thursday, April 15, 2010

Nevafilm Research on Digital Cinema in Russia

 
 
By Xenia Leontyeva and Svetlana Mudrova
 
As of December 31, 2009, Russia has 2,102 modern screens in 792 cinema complexes (with an average of 2.7 screens per complex). There are now 353 digital complexes with 351 (99 percent) equipped to show 3D exhibitions. Digital screens are in operation at 273 cinemas in 103 Russian cities.

Growth in the digital film distribution market amounted to 288 percent for the year. By the end of 2009, 34.5 percent of the country's cinemas were equipped for digital exhibition (16.8 percent of all screens). In 2010 we estimate that the market share for digital screens could reach 25 percent for modern cinemas in Russia (more than 570 screens).

The primary reason for growth in the digital screen market was the plethora of 3D films released (a total of 19 in 2009), with each major 3D release generating a wave of new screen openings.

The most important wave preceded the December launch of Avatar (more than 100 screens opened). However, it remains an open question whether installation of digital technology will continue at this rate in 2010, even considering the ever-growing volume of new 3D releases.

The majority of digital screens in Russia belong to federal cinema networks (40 percent), although independent cinemas are not far behind (at the end of 2009, independent players accounted for 36 percent of digital screens). The regional networks are more cautious about introducing new exhibition technology: their share of the digital distribution market is less than 10 percent.

Taking into account all market players, only 17 percent of screens have been equipped with digital exhibition technology. The federal networks have equipped more than half of their cinemas, while other market players have equipped less than 30 percent. Some of the federal and regional networks do not yet have any digital screens. This indicates that there are still prospects for growth in the Russian digital exhibition market.

Cinema Park and Luxor lead the way in the digital exhibition market. However, in 2009 other major exhibitors have begun actively installing digital equipment.

In Russia, the most popular digital exhibition systems are Christie projectors (53 percent of the market), Dolby Digital Cinema servers (67 percent) and Dolby 3D Digital Cinema systems (66 percent). The leading digital exhibition equipment integrator is Nevafilm Cinemas (35 percent of digital screens).

While the total number of films released in Russia fell by 8.7 percent in 2009 (324 films were released, including 78 Russian pictures), the number of digital releases is growing: last year as many as 96 films were released in digital format, including 19 produced in Russia. 15 3D films were released in Russia in 2009.

The number of digital copies is also on the increase: last year digital accounted for 7 percent of all prints in distribution (compared with 1.7 percent in 2008).

Most digital releases are Hollywood films and 3D pictures, most of which are wide releases (all pictures with a total circulation of over 600 prints and 67 percent of films with 300 - 600 prints in circulation). Surprisingly, of 32 pictures with a narrower release, 15 appeared in digital only (including 6 Nevafilm Emotion alternative programmes), and 8 of these were 3D films. This suggests that independent distributors are finding it harder and harder to break into the digital exhibition market.

Most digital releases are Hollywood films and 3D pictures, most of which are wide releases (all pictures with a total circulation of over 600 prints and 67 percent of films with 300 - 600 prints in circulation). Surprisingly, of 32 pictures with a narrower release, 15 appeared in digital only (including 6 Nevafilm Emotion alternative programmes), and 8 of these were 3D films. This suggests that independent distributors are finding it harder and harder to break into the digital exhibition market.

3D film receipts in the Russian film distribution market exceed those of 2D screenings by a considerable margin, but their share is gradually falling (although this depends on the film: James Cameron's Avatar, released in 2010, broke all records, both for the share of 3D receipts per screen compared with 2D screens (by more than 7 times) and for duration of exhibition (even after the release of Tim Burton's Alice in Wonderland, many cinemas continue to show Avatar on their digital screens).

At the same time, according to Nevafilm Research, in 2009 the average ticket price for 3D screenings in Russia rose steadily. In March, regular tickets cost less than 150 roubles ($4.40), while a visit to a 3D film was priced at 207 roubles ($6.20); in July, the price for a regular screening was more than 170 roubles ($5.60), while 3D films cost an average of 240 roubles ($7.60); in December the exhibition of longer 2D versions of Avatar cost more than 200 roubles ($6.70), and 3D versions cost more than 290 roubles ($9.60).

At the same time, since the beginning of the year the average level of price increases for 3D screenings has fallen nationwide: if the percentage increase for the first 3D digital release in Russia (Beowulf in 2007) was 69 percent, for Journey to the Center of the Earth – 41 percent and for Bolt – 43 percent (2008), this year began at +42 percent in March and continued at a forty-percent rate in July. However, in December the staggering Avatar put paid to predictions of a further drop in the difference between ticket prices: the average price increase for three-dimensional exhibitions of this film stood at 47 percent for the first weeks of screening.

Exhibitions on Russian digital screens over the past year were not limited to blockbusters and 3D films. The first alternative content entered distribution, exhibited not only as traditional repertory (over the course of a week) but also as unique cinema events, where a singular exhibition helped cinemas stand out from the competition.

In 2009, Nevafilm Emotion presented three popular musical projects – Iron Maiden: Flight 666, Tribute to Pavarotti: One Amazing Weekend in Petra, KINOaktsiya - The Last Hero, to commemorate Victor Tsoi – and a series of opera performances by La Scala, including La Traviata, Mary Stuart and Aida.

Nevafilm Company was founded in 1992 and today has more than 60 engineers and managers working for the company full time, with more than 400 people being invited every year for creative work.  Nevafilm Company is headquartered in St. Petersburg and has offices and recording studios in Moscow and Kiev.

The company encompasses Nevafilm Studios sound and dubbing studios in St. Petersburg, Moscow and Kiev (Ukraine); Nevafilm Digital, a digital cinema laboratory in St. Petersburg for mastering and DCP; Nevafilm Cinemas, a cinema equipment department, which has supplied digital projection systems for 35 percent of Russian d-screens; Nevafilm Emotion, distributor of alternative content for Russian digital cinemas, which to date have included a series of La Scala operas, as well as rock and pop concerts and documentaries; and Nevafilm Research, a research department focused on Russian cinema exhibition business. Since 2003 the company has published two reports per year on the status of the Russian cinema market.

No comments:

Post a Comment

Please comment as you wish.