Key Trends in the Cinema Sector 20 April 2017
A Joint Seminar by and
and generously hosted by
Key trends in the cinema market
• Cinema Sector Overview Toby Hall • Operator Updates Dave Windross Keith Pullinger Rob Kenny • Panel Session, chaired by Sarah Fox • Q&A
SPECIALIST MARKETS CINEMA MARKET OVERVIEW 2017
Prepared for:
IT ALL BEGAN WHEN … 4
In 1985 the first multiplex opened in Milton Keynes…
… and closed in 2015
MULTIPLEX OPENINGS 5
Source: Dodona and CBRE
In 2016 there are 331 operational multiplexes accounting for 77.4% of the
UK screens
0
5
10
15
20
25
30
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
CINEMA STATS 2011 - 2016 6
2011 2012 2013 2014 2015 2016 Population (m) 63.28 63.75 64.11 64.59 65.11 65.57 Screens 3,767 3,817 3,867 3,909 4,046 4,150 Average Ticket Price £6.06 £6.37 £6.54 £6.72 £7.19 £7.41 Average Refreshment Sales £2.02 £2.04 £2.09 £2.20 £2.31 £2.47 Screen Advertising & Other (£m) £104.3 £101.4 £124.1 £126.9 £154.4 £202.0 Admissions Per Person 2.71 2.71 2.58 2.44 2.64 2.57 Persons Per Screen 16,800 16,690 16,578 16,525 16,092 15,800
Source: Dodona
171.6m 172.5m
165.5m
157.5m
171.9m
168.3m
£1,039m
£1,099m £1,082m £1,058m
£1,236m £1,247m
£900m
£950m
£1,000m
£1,050m
£1,100m
£1,150m
£1,200m
£1,250m
£1,300m
150m
155m
160m
165m
170m
175m
2011 2012 2013 2014 2015 2016
Con
trib
utio
n
Admissions (m) Gross box office (£m)
HOW IS THE CINEMA MARKET EVOLVING 7
Odeon, The Lounge
Cineworld Milton Keynes – 4DX
Loyalty Cards
Refurbished Seating – Vue Cambridge
Curzon Victoria
Costa Coffee
CINEMA OFFER EVOLVING 8
Emergence of
Enhanced
Loyalty Cards
Improved catering facilities
VIP Area / Premium Services
Enhanced seat and screen technology
Refurbishment of existing
boutique city centre cinema operators ‘at seat’ F&B offer preventing customer promiscuity including branded coffee shops becoming more prominent Integration into metropolitan sites seat reduction and upgrade
SHOWCASE READING 9
BEFORE AFTER
Auditoria
F&B
Foyer
SHOWCASE READING REFURBISHMENT – THE RESULTS 10
Refurbishment
Seat Reduction
UK Gross Box Office Rank
Gross Box Increase Year After UK Gross Box in same period
Attendance Increase Year After
completed 8th October 2015 59% from 3,072 to 1,260 Year Prior - 90 Year After - 24 YTD - 21 + 75% + 12% + 57%
LOCATION OF EXISTING CINEMA ESTATE 2017 11
61%
25%
8% 6%
Leisure Park Shopping CentreHigh Street Retail Park
New in 2017…
Showcase, Southampton
Odeon, Bournemouth
Source: CBRE
NEW OPENINGS PIPELINE 2017-19 12
Location Operator Screens Opening Type
Bournemouth Odeon 10 2017 Leisure Park
Southampton Showcase 11 2017 Shopping Centre
Ipswich Empire 11 2017 Shopping Centre
Sheffield The Light 9 2017 High Street
Dover Cineworld 6 2017 Retail Park
Ruislip Cineworld 10 2017 Leisure Park
Bedford Vue 7 2017 Leisure Park
Bradford The Light 10 2017 Shopping Centre
Stockport The Light 10 2017 Shopping Centre
Leeds Cineworld 11 2017 Shopping Centre
Addlestone The Light 6 2017 High Street
Bromley Vue 10 2017 Leisure Park
Weston Cineworld 8 2017 Leisure Park
Oxford Curzons 5 2017 Shopping Centre
Bracknell Cineworld 12 2017 Shopping Centre
Skelmersdale Reel 6 2017 Shopping Centre
Location Operator Screens Opening Type
Clacton Reel 6 2018 Leisure Park
Eltham Vue 6 2018 Shopping Centre
Watford Cineworld 9 2018 Shopping Centre
Speke Cineworld 11 2018 High Street
Grantham Reel 6 2018 Retail Park
Islington Odeon 5 2018 Leisure Park
Stafford Odeon 6 2018 Leisure Park
Durham Odeon 6 2018 Shopping Centre
Ealing Picturehouse 6 2018 Shopping Centre
Plymouth Cineworld 12 2019 Shopping Centre
Burghess Hill Cineworld 10 2019 High Street
Edgware Cineworld 6 2019 Leisure Park
Eastbourne Cineworld 9 2019 Leisure Park
Rushden Lakes Cineworld 12 2019 Shopping Centre
Finsbury Park Cineworld 10 2019 Shopping Centre
Marble Arch Odeon 5 2019 Shopping Centre
York Cineworld 12 2019 Retail Park
Source: CBRE
NEW PIPELINE IMPACT ON CINEMA FUTURE ESTATE
Total of 33 new locations, equating to 279 screens
4 new High Street locations, 3 new Retail Park locations
CURRENT CYCLE
13
0
2
4
6
8
10
12
14
16
18
20
2015 2016 2017 2018 2019
Cin
ema
Ope
ning
s
2017 - 2019
24% increase in Shopping Centre locations, equating to 142 screens
10 new Leisure Park locations, equating to 77 screens
Cineworld, Bracknell
The Light, Stockport
Source: Dodona
KEY ISSUES FACING THE SECTOR 14
! 2013 began with strong momentum
due to a busy Q4 2012 which accounted almost 73% of
the total turnover for 2012
Ceiling on ticket price inflation
2013 began with strong momentum due to a busy Q4 2012 which
accounted almost 73% of the total turnover
for 2012
Big 3 operators reduced
acquisition plans
2013 began with strong momentum due to a busy Q4 2012 which
accounted almost 73% of the total turnover
for 2012
Restaurant market growth slowed
2013 began with strong momentum due to a busy Q4 2012 which
accounted almost 73% of the total turnover
for 2012
Local authorities Funding Expansion
2013 began with strong momentum due to a busy Q4 2012 which
accounted almost 73% of the total turnover
for 2012
Loyalty Cards limiting competitor
plans
2013 began with strong momentum due to a busy Q4 2012 which
accounted almost 73% of the total turnover
for 2012
Relatively Static Admissions
Prepared for:
SPECIALIST MARKETS CINEMA MARKET OVERVIEW 2017
V U E E N T E R T A I N M E N T Dave Windross
Senior Property Manager UK&I
VUE UK & IRELAND AT A GLANCE
• Formed in 2003
• Grown organically and through company acquisitions
• Currently majority owned by Omers Private Equity and Alberta Investment Management
• 85 trading multiplex sites in UK and Ireland with 812 screens
VUE INTERNATIONAL AT A GLANCE
• New Openings – Bedford (7 screens / 935 seats /18k sq ft)
• Seating – 6 existing sites to be converted to luxury seating proposition
• Leicester Square - Full refurbishment (9 screens with enhanced proposition)
• Preston – Full refurbishment (7 screens with enhanced seating proposition)
• Westfield – 3 additional screens to be completed early Summer
UPCOMING PROJECTS 2017
20
RETAIL
• Bristol Cribbs refurbishment completed March 2017 • New ‘concept’ retail environment • Includes draft beer, Square Pie, Pizza Hut and Lavazza concessions
VUE LEICESTER SQUARE
• Full Refurbishment of all 9 screens and bar area • New exciting Retail environment • Luxury Seating • To be completed Summer 2017
T H A N K Y O U
• Cinema goers are becoming more demanding and are looking for a premium / aspirational experience
• Cinemas that show a complacent market attitude (under
investment / weak customer experience) are vulnerable
• The Light look to deliver a unique premium cinema experience, in a personable style, relevant to each community and offering good value for money
• Expansion focussed on ‘destination’ shopping centres and
town centres
Trading Cinemas: 1. New Brighton • 8 screens 2. Wisbech • 8 screens 3. Cambridge • 9 screens 4. Halle (Germany) • 8 screens 5. Walsall • 8 screens 6. Bolton • 9 screens 7. Thetford • 3 screens 8. Sheffield • 9 screens
Pipeline UK sites: 1. Stockport • 10 screens • November 2017 – Stockport Council 2. Bradford • 7 screens • November 2017 – Mayer Bergman 3. Skelmersdale • 8 screens • December 2017 – London & Cambridge 4. Addlestone • 6 screens • March 2018 – Runneymede Council / Bouygues 5. Banbury • 8 screens • April 2019 – Hawkestone 6. Sittingbourne • 8 screens • July 2019 – Swale Council / U and I 7. Lichfield • 7 screens • August 2019 – U and I 8. Wakefield • 9 screens • 2018 - Sovereign 9. Dundee • 9 screens • 2019 – Orchard Street 10. Stoke • 9 screens • 2019 – Realis 11. Redhill • 6 screens • 2019 – Reigate & Banstead Council 12. Skelmersdale • 8 screens – 2019 – London & Cambridge / Threadneedle 13. Nottingham• 9 screens • 2019 – Intu 14. Huddersfield • 7 screens • 2020 – Kingsgate Shopping Centre 15. Preston • 9 screens • 2020 – Preston Council
.
Popcorn…and so much more:
.
Concessions; offered with style!
.
Family Fun
.
Café Bar with fully licensed auditoria
.
Foyer as social space:
.
Toilets areas:
Auditorium Reclining Seats with side tables
.
Curzon Canterbury
Curzon Canterbury
Curzon Canterbury
Curzon Canterbury
Curzon Canterbury
Curzon Victoria
Curzon Victoria
Curzon Victoria
Curzon Victoria
Curzon Victoria
Curzon Victoria
Curzon Sheffield
Curzon Sheffield
Curzon Sheffield
Curzon Sheffield
Curzon Sheffield
Curzon Bloomsbury
Curzon Bloomsbury
Curzon Bloomsbury
Curzon Bloomsbury
Curzon Bloomsbury
Curzon Aldgate
Curzon Aldgate
Curzon Aldgate
Curzon Aldgate
Curzon Aldgate
Key Trends in the Cinema Sector 20 April 2017
A Joint Seminar by and
and generously hosted by