Red carpet: The industry has focused on premium offerings to increase profitability

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. However, increases in household discretionary income and expenditure on recreation and culture over the past five years have helped offset competition from internet downloads. Industry firms have upgraded projectors and sound systems to digital and 3D, and have responded to intense competition through diversification and product innovation. For example, major players have focused on offering a premium cinema experience and expanded the range of content they exhibit. Industry revenue is forecast to grow at an annualised 1.0% over the five years through 2017-18, to reach $1.8 billion...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
1.0%
Forecast Growth 18-23
Profit
Employment
10,862
Businesses
344

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
  • Industry Report - Industry Locations Chapter

    Industry revenue is naturally distributed according to the share of population. IBISWorld expects the eastern seaboard states of New South Wales, Victoria and Queensland command about 80.0% of industry revenue in 2017-18. Significant investment in suburban and, to some extent, major regional centres have occurred over the last few years. This is changing the face of the industry in terms of screen location and generating revenue. A shift is evident from small country cinemas, where significant consolidation of theatres occurred, to multiplexes that are more likely located in suburban areas rather than central business districts due to ease of access...purchase to read more.

    Additional Insights for the Cinemas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cinemas Industry 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

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Home entertainment
  • Digital investment
  • Viewing experience
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Online competition
  • Ageing population
  • Services innovation
  • Table: Cinemas Industry Revenue Outlook

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

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Cinemas

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    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

  • 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
    Table: Industry Data for the Cinemas Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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?

    IBISWorld’s Cinemas market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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