Flavored with great product presentations, loads of networking and interesting panels and workshops, CineEurope 2014 has also been an occasion to point out that Europe is still very centrally positioned within the global film industry.
According to the UNIC* President Phil Clapp’s industry address, European cinema continues to command a global market share of around 30 per cent, and theatrical exhibition remains a robust foundation for – and driver of – the performance of the entire value chain going to touch 60 per cent of total revenue by 2017, exploiting the opportunities provided by digital technology to increase the admission per capita figures, whereas declining revenue from physical home entertainment are only partially being replaced by the growth of digital distribution.
Furthermore, it is claimed that taking full advantage of the flexibilities in programming only possible in a digital age will allow us better to match the films on screens to the audiences in theatres. It is crucial to evolve and develop engaging strategies for an increasingly fragmented, demanding and sophisticated audience.
* UNIC is the International Union of Cinemas, representing operators in 33 European Territories, €7.4 billion box office, 33 thousand screens, 1.1 billion admissions.
TITLE | DISTRIBUTOR | WEEKS || GROSS W-E | %CHANGE | TOT GROSS || ADMISSIONS W-E | TOT ADMISSIONS || N° SCREENS | SCREEN AVG
- Maleficent | Disney | 2 || €1,695,646 | -62% | €8,812,676 || 256,794 | NA || 732 | €2,316
- Edge of Tomorrow | Warner Bros | 2 || €420,505 | -60% | €1,931,199 || 68,330 | NA || 500 | €841
- X-Men: Days of Future Past | 20th Century Fox | 3 || €403,422 | -69% | €5,502,934 || 65,966 | NA|| 390 | €1,034
According to the PwC Entertainment and Media Outlook 2014-2018, revenue for filmed entertainment is increasingly coming from OTT services such as Netflix (from $3.3 billion to $10 billion in 2018) and transactional video services such as iTunes and Google Play: overall, the digital VOD is growing at a 24.8% CAGR and will reach $14 billion only in the US, offsetting the declines in physical media such as DVDs and BluRay discs from $12.2 billion to $8.7 billion.
Besides the fact that the US will keep its dominant position in the worldwide market with a total of $39.2 billion, the news is that the digital sector will be overtaking the box-office revenue by 2018, which is slightly growing at a 3.1% CAGR from $10.8 billion to $12.5 billion, mainly due to an average ticket price increase from $8.90 to $9.80.
The general trend observed in the research simply describes a natural shift due to technological advancements and changes in consumption habits, whereas the good news is that overall revenue for the industry is growing.