1. Trends of cinema-going in Europe and worldwide Multiplexes in Europe
Digital Cinema worldwide
Talk by Elisabetta Brunella
Secretary General, MEDIA Salles
at the CICAE course “Art Cinemas = Action + Management”
9-18 March 2005, Venice, Italy
MEDIA Salles is an initiative of the MEDIA Progranne of the European Union with the support of the Italian Government.

2. MEDIA Salles is an initiative of the MEDIA Progranne of the European Union with the support of the Italian Government.

3. CINEMA-GOING IN WESTERN EUROPE
2003
overall result –5.1% compared to from 958 to 909 million spectators
admissions on the 5 main markets are decreasing
D: -9.1%, E: -2.3%, F: -5.6%, UK: -4.9%, I: -5.5%
total screens in 2003: (+2.5%)
screens are stable in D, still growing in E (+6.8%), I (+6.4%), UK (+0.9%), F (+0.6)

4. CINEMA-GOING IN CENTRAL AND EASTERN EUROPE 2003:
total admissions are decreasing: -3.9% from 102 in 2002 to 98 million spectators in 2003
the main markets record different trends in admissions:
CZ: +13.5%, HU: -11.4%, PL: -6.7%, RO: -14.8%, TR: +0.5%
total screens in 2003: 4 709

5. HOW FREQUENTLY DO EUROPEANS GO TO THE CINEMA?

6. FREQUENCY PER CAPITA IN THE 5 MAIN MARKETS OF WESTERN EUROPE
Average frequency per capita in Western Europe in 2003: 2.32

7. FREQUENCY PER CAPITA IN THE 5 MAIN MARKETS OF CENTRAL AND EASTERN EUROPE
Average frequency per capita in Central and Eastern Europe in 2003:

8. EASTERN and CENTRAL EUROPE
WESTERN EUROPE vs
EASTERN and CENTRAL EUROPE

9. WESTERN EUROPE
(18 countries)

10. WESTERN EUROPE- 2003 One cinema every 332 Km2 One screen every 135 Km2
(18 countries)
One cinema every 332 Km2
One screen every 135 Km2
One cinema per inhabitants
One screen per inhabitants
Average size of cinema: 2,5 screens
Frequency per capita: 2,32 tickets per year
Average ticket price: 5,77 euro

11. CENTRAL and EASTERN EUROPE
(15 countries)

12. CENTRAL and EASTERN EUROPE - 2003
(15 countries)
One cinema every 578 Km2
One screen every 430 Km2
One cinema per inhabitants
One screen per inhabitants
Average size of cinemas: 1,3 screens
Frequency per capita: 0,53 tickets per year
Average ticket price: 2.82

13. CENTRAL and EASTERN EUROPE
WESTERN EUROPE vs
CENTRAL and EASTERN EUROPE
Frequency per capita in Western Europe is four times higher than in Central and Eastern Europe (2,32 vs 0,53).
The average ticket price in Western Europe is almost double that of Central and Eastern Europe (5,77 euro vs 2,82 euro).
In the 1998 – 2003 period,
- gross box office in Central and Eastern Europe increased by 50.4%, as against the 21.7% increase recorded in Western Europe,
on the other hand, admissions in Western Europe increased by 7,5% and in Central and Eastern Europe decreased by 0,1%,
the average ticket price in Western Europe increases slightly, growing from 5,10 to 5,77 euro, as against the increase from 1,87 to about 2,82 recorded in Central and Eastern Europe.
Western Europe has 1 screen every inhabitants whilst Central and Eastern Europe have 1 every inhabitants.
The ratio of the two regions is over 2:1 (2,75).

14. WHICH MOVIES DO EUROPEANS WATCH AT THE CINEMA?

15. ADMISSIONS IN EUROPE BY FILM ORIGIN

16. MARKET SHARES IN WESTERN EUROPE - 2003
D:gross distribution revenues FIN: percentages of admissions I: Cinetel data

17. MARKET SHARES IN CENTRAL AND EASTERN EUROPE - 2003
CS, EE, HU, PL: new releases PL: percentage of admissions

18. ADMISSIONS IN EUROPE BY FILM ORIGIN
Breakdown of admissions by film origin is stronly affected by the success of US films which mantain an extremely high share of total admissions, around 70%, over the years.
In alternative years, specifically in 1997, 1999 and 2001, Domestic films gained significant shares of admissions, as did, to a lesser extent, European films in general. Thanks to the success of a few titles, the latter managed to influence the overall market trend.
In 2003, faced with a predominance of US films, it was mostly Domestic films that managed to play a significant role in Europe, gaining significant shares of box office (F: 34.5%, DK: 23.2%, I: 22.0%, S: 18.9%, CZ: 23.7%, CS: 18.5%, PL: 9.8%)
Instead the market shares of non-domestic European films remain quite small.

19. ADMISSIONS FOR DOMESTIC FILMS
GERMANY
Total admissions in 2004:
156.7 m. (+5.2%)
From TOP 10 FILMS (by admissions):
1. (T)RAUMSCHIFF SURPRISE - PERIODE 1 (D):
admissions
3. 7 ZWERGE (D): admission
5. DER UNTERGANG (D, I, A): admissions
% of top 3 DOM on total admissions: 12.9%

20. ADMISSIONS FOR DOMESTIC FILMS
CZECH REPUBLIC
Total admissions in 2003:
12.1m. (+13.5%)
From TOP 10 FILMS (by admissions):
1. PUPENDO (CZ): admissions
5. JEDNA RUKA NETLESKÁ (CZ): admissions
6. KAMENÁK (CZ): admissions
7. ŽELARY (CZ, A, SK):
% of top 4 DOM on total admissions: 18.3%

21. ADMISSIONS FOR DOMESTIC FILMS
SERBIA AND MONTENEGRO
Total admissions in 2002:
4.8 m. (-0.4%)
-15.3% (2001/2000)
From TOP 10 FILMS (by admissions):
1. ZONE (CS): admissions (21.1% on total admissions)
3. MRTAV 'LADAN (CS): admissions
5. MALA NOCNA MUZIKA (CS): admissions
8. LAVIRINT (CS): admissions
9. JEDAN NA JEDAN (CS):
% of top 5 DOM on total admissions: 32.9%

22. ADMISSIONS FOR DOMESTIC FILMS
POLAND
Total admissions in 2001:
27,6 m. (+ 32,3%)
From TOP 10 FILMS (by admissions):
1. QUO VADIS (PL): admissions
2. W PUSTYNI I W PUSZCZY (PL): admissions
3. PRZEDWIOŚNIE (PL): admissions
7. WIEDZMIN (PL): admissions
% of top 4 DOM on total admissions: 32%

23. TRENDS IN CINEMA ADMISSIONS Concentration of admissions on few titles
CS: top 3 films = 31.9% on total admissions
top 10 films = 52.1% on total admissions
PL: top 10 films = 44.6% on total admissions
EE: top 10 films = 43.2% on total admissions
UK: top 10 films = 41.9% on total admissions
CZ: top 10 films = 34.9% on total admissions
D: top 10 films = 34.3% on total admissions

24. CINEMA-GOING WORLDWIDE: INTERNATIONAL MAJOR MARKETS
WESTERN EUROPE vs
INTERNATIONAL MAJOR MARKETS

25. CINEMA-GOING WORLDWIDE:
ADMISSIONS (x )
NUMBER OF SCREENS
Russia: the number of screens refers to the theatres of new generation

26. WESTERN EUROPE - USA: NUMBER OF ADMISSIONS

27. WESTERN EUROPE - USA: NUMBER OF SCREENS

28. USA: THEATRES BY NUMBER OF SCREENS
Source: MPAA

29. MULTIPLEXES IN EUROPE

30. MULTIPLEXES IN EUROPE 10 160 screens in 944 sites in 30 countries
(as at 31 October 2004)
screens
in 944 sites
in 30 countries

31. TREND OF NUMBER OF SCREENS IN MULTIPLEXES IN EUROPE
Screens in European multiplexes are still in the growth but more slowly:
+6.7% between 2004 and 2003
+9.5% between 2003 and 2002
The growth of screens, especially of those located in multiplexes with 9, 11, 16 screens and in megaplexes (sites with at least 16 screens), is slowing down.

32. MULTIPLEXES IN WESTERN EUROPE: NUMBER OF SCREENS
(as at 31st October)
2000
2001
Var%
01/00
2002
02/01
2003
03/02
2004
04/03
8 screens
1208
1376
13,9%
1448
5,2%
1584
9,4%
1680
6,1%
9 screens
1026
1179
14,9%
1314
11,5%
1395
6,2%
1449
3,9%
10 screens
950
1070
12,6%
1260
17,8%
1310
4,0%
1390
11 screens
407
473
16,2%
583
23,3%
693
18,9%
715
3,2%
12 screens
888
1056
1140
8,0%
1236
8,4%
1368
10,7%
10,13 screens
182
286
57,1%
312
9,1%
338
8,3%
364
7,7%
14 screens
518
588
13,5%
686
16,7%
798
16,3%
868
8,8%
15 screens
270
300
11,1% -
345
15,0%
405
17,4%
>=16 screens
601
805
33,9%
31,2%
1142
8,1%
1144
0,2%
Total
6050
7133
17,9%
8099
8841
9,2%
9383

33. MULTIPLEXES IN CENTRAL AND EASTERN EUROPE: NUMBER OF SCREENS
(as at 31st October)
2000
2001
Var%
01/00
2002
02/01
2003
03/02
2004
04/03
8 screens 48 80
66,7%
128
60,0%
152
18,8%
168
10,5%
9 screens 27 54
100,0% 81
50,0% 90
11,1%
117
30,0%
10 screens
130
62,5%
160
23,1%
170
6,3%
180
5,9%
11 screens 22 55
150,0% 66
20,0% - 44
-33,3%
12 screens 24 72 84
16,7% 96
14,3%
13 screens 26 39 65
14 screens 42 28 56
33,3%
15 screens 15
>=16 screens 20 36
80,0%
Total
269
441
63,9%
594
34,7%
678
11,6%
777
13.3%

34. DENSITY OF SCREENS IN MULTIPLEXES IN THE MAJOR MARKETS
In major markets, the countries with the highest density of screens in multiplexes are United Kingdom (60.0%), Belgium (52.4%), Spain (50.5%) and Luxemburg (38.5%).
The analysis of the situation of the number of screens during the years shows that the percentage on the total of:
the number of screens in multiplexes grows, but with decreasing rates in the last four years;
the percentage of screens in multi-screens cinemas shows a small but constant decrease;
the percentage of screens in single-screens cinemas records the greatest flexion.

35. TREND OF NUMBER OF ADMISSIONS IN MULTIPLEXES
The concentration of admissions
in multiplexes in Europe is growing.
In 2003, in 8 countries multiplexes account for more than 50% of admissions

36. MULTIPLEXES IN EUROPE: CONCENTRATION OF ADMISSIONS
(Western Europe)

37. MULTIPLEXES IN EUROPE: CONCENTRATION OF ADMISSIONS
(Central and Eastern Europe)

38. DIGITAL CINEMA WORLDWIDE

39. DIGITAL SCREENS WORLDWIDE
(cinemas equipped with DLP CinemaTM projector )
In the last two years digital screens ranged from
154 (February 2003) to 291 (December 2004)
+ 89%
Source: “European Cinema Yearbook – 2004 final edition”

40. DIGITAL SCREENS WORLDWIDE
(cinemas equipped with DLP CinemaTM projector )
In total, the most significant increase took place in the last 6 months
February 2003/June 2004 (16 months): +91 screens
June 2004/December 2004 (6 months): +46 screens
Considering figures by continent, the quickest increase was registered in Asian and European countries, while the US, the first country equipped with digital projectors, show a much lower growth percentage.

41. DIGITAL FILMS WORLDWIDE
“Digital films: scarce but growing supply of movies in a digital format”
(as at December 2004)
NOTE: films released in DLP CinemaTM technology.

42. NEW DIGITAL TECHNOLOGIES
D-cinema is growing, standards are now being established,
new digital technologies can offer exhibitors new business opportunities
(both D-cinema and E-cinema):
alternative content and film programming
for specific audiences
digital cinema advertising

43. WHAT’S GOING ON IN EUROPE Palace Cinemas, Czech Republic - Hungary
DIGITAL PROJECTION:
WHAT’S GOING ON IN EUROPE
Palace Cinemas, Czech Republic - Hungary
2 screens equipped with DLP CinemaTM projectors
(Palace Slovansky Dum in Prague, MOM Park in Budapest)
Digital Hollywood films (i.e. Finding Nemo, The Day After
Tomorrow)
Alternative contents:
Music events: David Bowie and Bon Jovi Live concerts; DVDs premiere
(i.e. The Beatles – Concert for George)
Sports events: UEFA Euro 2004
DVDs projections for specialized audience: i.e Bowling a Columbine,
Apocalypse Now Redux (that probably would not have been shown at the
cinemas in 35mm)

44. WHAT’S GOING ON IN EUROPE
DIGITAL PROJECTION:
WHAT’S GOING ON IN EUROPE
Arcadia, Italy
2 screen equipped with DLP CinemaTM projector
Digital Hollywood films (i.e. Atlantis: The Lost Empire, Star Wars Attack of the Clones, Pinocchio, Alien Director’s Cut, The Day After Tomorrow, I Robot, The Incredibles)
Alternative contents:
Music events: David Bowie Live Concert
Stanley Kubrick: A Life in Pictures
Star Wars Episode II - Attack of the Clones - making of

45. WHAT’S GOING ON IN EUROPE Kinepolis Group, Belgium
DIGITAL PROJECTION:
WHAT’S GOING ON IN EUROPE
Kinepolis Group, Belgium
“A strategic choice: digital as an added value and a competitive advantage”
10 screens equipped with DLP CinemaTM projectors in Belgium
Digital Hollywood films (i.e. Finding Nemo, Brother Bear)
Alternative contents:
digital previews of Aspe series, a popular weekly TV movie series
broadcast of TV News
special digital screenings of local productions for the young audience
(Plop en de Toverstaf)
broadcast of prestigious events and concerts

46. WHAT’S GOING ON IN EUROPE Belgium, Luxembourg, The Netherlands, France
DIGITAL PROJECTION:
WHAT’S GOING ON IN EUROPE
Utopia Group,
Belgium, Luxembourg, The Netherlands, France
10 screens were recently equipped with DLP CinemaTM projectors in 3 countries:
BELGIUM: 2 screens in Utopolis Mechelen, 2 screens in Utopolis
Turnhout (October-November 2004)
LUXEMBOURG: 3 screens in Utopolis Luxembourg (March-October
2004)
THE NETHERLANDS: 3 screens in Utopolis Almere (November 2004)

47. WHAT’S GOING ON IN EUROPE
DIGITAL PROJECTION:
WHAT’S GOING ON IN EUROPE
UK Film Council, United Kingdom
Digital Screen Network:
the world’s first large scale digital screen network with the aim of improving access to specialised films and broadening the range of films available to audiences throughout the UK.
UK Film Council has recently selected Arts Alliance Digital Cinema to install and run the Digital Screen Network: AADC will provide a network of up to 250 screens throughout the UK, covering installation, training, servicing, warranties and upgrades. Each cinema will guarantee a minimum number of specialised (art-house/foreign language) film screenings a week in return for the equipment.
AADC will also be able to create digital cinema masters for specialised film content and to deliver them to cinemas at a pre-agreed price.

48. WHAT’S GOING ON IN EUROPE Carlton Screen Advertising, UK
DIGITAL PROJECTION:
WHAT’S GOING ON IN EUROPE
Capa, Norway
Leading Norwegian cinema advertising company: conversion of its Scandinavian network to satellite deilvered e-cinema projection, developing a larger base of advertising clients and offering exhibitors a reduction of reel-assembly time and more flexibility.
Carlton Screen Advertising, UK
Leading UK cinema advertising company: investment in digital advertising to distribute digital video contents via satellite to the cinemas.

49. WHAT’S GOING ON WORLDWIDE
DIGITAL PROJECTION:
WHAT’S GOING ON WORLDWIDE
Regal CineMedia, US
Digital Content Network (DCN): the world’s largest digital network for the delivery (via satellite) of on-screen and in-lobby marketing and advertising products as well as digital video contents to over 5,000 Regal Cinemas’ screens in US:
delivery of “The 2wenty”, the Regal CineMedia 20-minute pre-show programme offering advertising and entertainment,
delivery of alternative contents (HD format): simulcasting of live music concerts and events, delivery of educational, entertainment and sports programming.

50. WHAT’S GOING ON WORLDWIDE
DIGITAL PROJECTION:
WHAT’S GOING ON WORLDWIDE
China vs India
Digital vs Electronic
CHINA:
fast growth of d-cinemas, supported by local authorities:
55 D-cinemas and screens as at June 2004,
67 D-cinemas and 74 screens as at December 2004.
INDIA:
the world’s largest digital theatre country with around
130 e-cinemas in small towns and rural areas.

51. and with ANEC, FICE, ADN, ProjectScope
“DigiTraining Plus:
New Technologies
for European Cinemas”
April 2005, Kuurne, Belgium
in collaboration with
and with ANEC, FICE, ADN, ProjectScope
The second edition of the course devoted to digital cinema specifically addressing European cinema exhibitors

52. “DigiTraining Plus: New Technologies for European Cinemas”
MAIN TOPICS
• Introduction and general overview of the international market of digital projection: number of digital installations worldwide, digital products, main operators, comparison between EU, US and Asian markets, the most recent updates on the market.
E-cinema and D-cinema.
The point of view of distribution on digital projection.
Analysis of significant cases: the experiences of independent European companies and international companies.
• Content: distribution of digital content, alternative content, advertising.
Technical overview: projectors e servers, sound systems, installation and monitoring, anti-piracy measures.
Demo of digital screening: from high-definition tv to digital cinema.
Visit to a cinema with digital installation.

53. www.mediasalles.it The application form, the provisional programme
“DigiTraining Plus: New Technologies for European Cinemas”
The application form, the provisional programme
and general information on the course are available on the MEDIA Salles’ website:
Course fee
400 euro for enrolments within 21 March
500 euro for enrolments after 21 March
(covering tuition, teaching material, 4-nights accommodation and meals)

54. www.mediasalles.it The Course Report of the 2004 edition
is already available on the MEDIA Salles’ website
Including the course programme, the speakers’ presentations, the participants’ comments, data on digital cinema-going worldwide.
“DigiTraining Plus: New Technologies for European Cinemas”
31 March – 4 April 2004, Kuurne, Belgium

55. For further information: