Show stopper: Revenue is rising despite strong competition from alternate entertainment

The Cinemas industry has grown over the past five years, fuelled by rising discretionary incomes, and increased expenditure on recreation and culture. In addition, revenue per cinema patron has trended upwards over the period, spurred by higher spending on premium screenings, and high-margin confectionary products and dine-in services. Industry revenue is expected to grow at an annualised 1.7% over the five years through 2017-18, to reach $268.5 million. Revenue is anticipated to grow by 3.9% over the current year, spurred by strong ticket sales from high-budget titles such as Wonder Woman and Star Wars: The Last Jedi.Industry players have faced intense competition from alternative entertainment options, particularly subscription video on demand services such as Netflix and Neon...read more.

Industry Statistics & Market Size
Revenue
$269m
Annual Growth 13-18
1.7%
Forecast Growth 18-23
Profit
Employment
1,970
Businesses
94

Industry Threats & Opportunities

  • Higher spending on premium screenings has boosted the average spend per cinema patron
  • Stronger competition has prompted cinema operators to upgrade their infrastructure
  • Online content streaming platforms will continue to exert downward pressure on industry demand
  • Industry Report - Industry Locations Chapter

    The geographic spread of cinemas New Zealand closely correlates with the nation's population and income distribution, and general economic activity. As a result, most cinemas are concentrated in Auckland, Canterbury and Wellington, which represent almost 65% of all industry establishments. These regions account for about 58% of the New Zealand population, allowing cinema operators to locate close to large populations to better generate sales.In particular, Wellington accounts for a significantly greater proportion of cinema complexes than its population base would indicate. This is largely due to the region's strong participation in film and other arts. Ove...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 Consumer sentiment index in the Cinemas industry impact industry performance..

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    What's in this report

    What is the Cinemas in New Zealand Industry?

    Firms in this industry mainly screen motion pictures using a variety of visual media. This includes units screening productions at festivals and other similar events.

    Industry Products
  • Film screenings
  • Food and beverages
  • Screen advertising
  • Other products and services
  • Industry Activities
  • Cinema operation
  • Film or video festival operation
  • Drive-in theatre operation
  • Multiplex cinema operation
  • Motion picture screening and theatre 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
  • Consumer sentiment index
  • Households with internet access
  • Average weekly hours worked
  • Demand from motion picture and video production

  • Current Performance
  • Rising external competition
  • 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 and Market Research Services in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Electricity Retailing in New Zealand
  • Motion Picture and Video Production in New Zealand
  • Wired Telecommunications Network Operation in New Zealand

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

  • Demand Determinants
    Major Markets
  • People aged 35 to 49
  • People aged 25 to 34
  • People aged 50 and over
  • People aged 14 to 24
  • 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
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cinemas Industry

  • Industry Globalization
    Amalgamated Cinema Holdings Limited, HCH Bidco (NZ) Limited, Reading New Zealand Limited,
  • Table: Amalgamated Cinema Holdings Limited - financial performance
  • Table: HCH Bidco (NZ) Limited - financial performance
  • Table: Reading New Zealand 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
    Digital Screens
  • Screens equipped to exhibit films in digital format and sound.
  • Multiplex
  • A large cinema complex with four or more screens.
  • Online Piracy
  • The illegal use or copying of licensed and copyrighted materials from the internet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cinemas in New Zealand market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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