CINEMA FOREVER!

Cinema Remains The Preferred Out Of Home Entertainment Experience

CAMERON MITCHELL CHIEF EXECUTIVE OFFICER CONSULT MIDDLE EAST

Cameron has worked in the entertainment industry for 25 years, including 14 years as CEO of VOX Cinemas (Majid Al Futtaim). During his tenure at VOX Cinemas, the company delighted over 200m guests, expanding from 40 screens (1 country) to 650 screens (8 countries). Cameron consults on Entertainment globally, is the Executive Director of The National Association Of Cinema Operators, a Director of Creative Content Australia, and a member of the Griffith Film School Industry Advisory Board.

Cinema Is Enjoying Strong Growth Globally.

It is estimated that more than four billion cinema tickets were sold in 2022, with the global box office reaching $26 billion. Despite there being 36% fewer major releases in 2022 than in 2019 (USA’s Cinema Foundation), the EMEA box office grew by 52%, US box office by 65% with similar stellar results recorded in the UK (+62%) and Europe (+56%). YTD box office in most markets is enjoying doubledigit growth on the prior year, again highlighting that exciting well promoted diverse content with an appropriate release window, released across the full calendar year, will continue to drive attendance to new heights.

Streamers Are Not The Enemy!

Streaming platforms have grown in number and competence in recent years. Netflix initially had the lion’s share of content and monopolistic reach, however in recent years we have seen competition in the sector increase, which has proven positive for cinemas. As noted in an Ernst & Young report commissioned by the United States National Association of Theatre Owners (NATO) in February 2020, “Those who attended movies in theatres more frequently also tended to consume streaming content more frequently. For every race and age demographic, average streaming hours per week were higher for respondents who visited a movie theatre 9 times or more than respondents who visited a movie theatre only once or twice. Streaming companies have identified the appeal of the cinema experience and are actively supporting it with content. Apple and Amazon recently announced that they will each be investing $1 billion annually in creating and promoting content to be released in cinemas, confirming that cinema and streaming are, in fact, complementary to each other, with cinema amplifying the appeal and value of movie IP.

Middle East Exhibitors Continue To Lead Experience Standards Globally

The Middle East continues to set international standards in outof-home entertainment, not only in cinema, but in entertainment generally, and the rest of the world continues to watch closely with admiration. Middle East exhibitors have invested heavily in technology, content, world-class F&B offerings, IT systems, loyalty platforms, e-commerce solutions & NPS guest feedback programs, all with a view of understanding what guests want and empowering their exceptional teams to over-deliver on the guest experience.

The IMAX @ VOX Mall Of The Emirates is an example of a best-inclass regional experience, that continues to be one of the highestgrossing screens globally. Similarly, VOX Cinema’s F&B associations with the late Gary Rhodes, and more recently with Saudi chef Mona Mosly, ensures guests can enjoy exceptional F&B in the Middle East to further enhance the experience of cinemagoing. Muvi Cinemas in Saudi Arabia has launched a myriad of compelling cinema concepts and brands, and the company has diversified further launching Muvi Studios, which among other successes created the most successful Saudi Arabian film of all time Sattar. AMC in Saudi Arabia similarly operates to a very high standard, launching a compelling loyalty offering and several successful IMAX screens in prominent locations.

Cinema Will Continue To Anchor Developments Globally.

Cinema is over 125 years old. There is an often-quoted industry story of Netflix executives being laughed out of the room when they broached the suggestion of a partnership with Blockbuster in the 2000’s for $50m, only to later see Netflix valued at over $140 billion with >230m subscribers in 2022, and blockbuster becoming a childhood memory. Countless sector competitors have arisen, however like all businesses that face competition, cinemas globally have pivoted and enhanced their experiences and risen to a higher standard, and this evolution will continue.

New challenges will surface (Yes AI movies are coming), however, given we will continue to crave shared emotional experiences, cinema will continue to evolve and delight. Early box office estimates predict that the global box office will reach $32 billion (+23%) in 2023. The US Cinema Foundation further recently noted that the “Box office, on a film-by-film basis, has rebounded to 2019 levels, limited only by the number of wide releases in the marketplace. The number of wide releases in 2023 is more than 40% higher than 2022 and approaching the number of wide releases in 2019”.

Cinema is forever, the experience will continue to evolve, and cinema will remain the preferred out-of-home experience globally, that unites families and friends around the cultural shared experience of storytelling. #betterincinema