Big ticket: Premium cinema experiences set the scene for industry revenue growth

The Cinemas industry is in a state of flux. Cinema operators face intense competition from other sources of entertainment, such as video streaming services, and from internet film piracy. Additionally, slow growth in discretionary income and volatile consumer sentiment have contributed to difficult trading conditions for cinema operators. In response, industry firms have tried to differentiate the cinema experience from other forms of entertainment. Operators have upgraded projectors and sound systems to digital and 3D, while focusing on unique and luxury product offerings, such as new 4DX cinemas. Overall, industry revenue is expected to decline at an annualised 0.5% over the five years through 2018-19, to reach $1.7 billion. This includes anticipated growth of 0.3%...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
-0.5%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
11,415
Businesses
338
Market Share of Companies

Industry Threats & Opportunities

  • Firms have focused on offering a premium cinema experience, boosting average ticket prices
  • Cinema operators face significant competition from consumers downloading or streaming films
  • Profitability will rise as cost savings come from cheaper digital technology film distribution

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    Industry Report - Industry SWOT Analysis Chapter

    The Cinemas industry is in the mature phase of its economic life cycle. The industry's contribution to the economy (industry value added) is expected to rise at an annualised 1.5% over the 10 years through 2023-24. This represents an underperformance compared with Australia's GDP, which is forecast to increase at an annualised 2.7% over the same period. This result indicates that the industry is contracting as a share of the overall economy. Significant competition from other sources of entertainment including pay-TV services, subscription video on demand platforms and internet piracy have constrained the industry's performance and contributed to declining enterprise numbers...purchase to read more.

    Additional Insights for the Cinemas Industry

    IBISWorld has determined the most important Key Success Factors for the Cinemas are:

  • Easy access for clients
  • Access to the latest available and most efficient technology and techniques
  • Market research and understanding

    • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Internet connections in the Cinemas industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Cinemas Industry?

    The Cinemas industry includes companies that are involved in screening commercial motion pictures from film or videotape. The industry includes independent and chain operators, and single-screen and multi-screen multiplexes.

    Industry Products
  • Film screenings
  • Food and beverages
  • Screen advertising
    • Industry Activities
  • Cinema operation
  • Drive-in theatre operation
  • Film or video festival operation
  • Motion picture screening and theatre operation
  • Newsreel theatre operation
  • Multiplex cinema operation
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Internet connections
  • Consumer sentiment index
  • Average weekly hours worked
  • Demand from motion picture and video production

    • Current Performance
  • Video downloads
  • New innovations
  • Broader content
  • Industry structure
  • Chart: Revenue Growth

    • Industry Outlook
  • Participation and profit
  • Online competition
  • Services innovation
  • Table: Cinemas Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Advertising Services
  • Consumers

    • Key Selling Industries
  • Liquor Wholesaling
  • Motion Picture and Video Distribution
  • Motion Picture and Video Production
  • Soft Drink and Pre-Packaged Food Wholesaling

    • Products & Services
  • Film screenings
  • Food and beverages
  • Other
  • Screen advertising
  • Chart: Cinemas Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • People aged 50 and over
  • People aged 14 to 24
  • People aged 35 to 49
  • People aged 25 to 34
  • Chart: Major Market Segmentation for the Cinemas Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Film rental
  • Wages
  • Purchases
  • Rent
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Cinemas

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

    • Industry Globalization

    Major Companies

    Event Hospitality & Entertainment Limited, Auholdco1 Pty Limited, Village Roadshow Limited, Reading Entertainment Australia Pty Limited,
  • Table: Event Hospitality & Entertainment Limited - financial performance
  • Table: Auholdco1 Pty Limited - financial performance
  • Table: Village Roadshow Limited - financial performance
  • Table: Reading Entertainment Australia Pty Limited - financial performance

    • Operating Conditions

    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

    Key Statistics

    Table: Industry Data for the Cinemas Industry
    Includes:
  • 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

    Jargon & Glossary

    Blockbuster
  • A popular film that is released across 400 or more cinema screens and generates substantial box office takings.
    • Digital Screens
  • Screens equipped to exhibit films in digital format and sound.
    • Multiplex
  • A large cinema complex with four or more screens.
    • What Our Customers Say
    Why buy this report?

    The Cinemas market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 of 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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