Cinema attendance trends in the UK post-pandemic: Navigating the new cinema terrain
UK Cinema Attendance Rebounds in 2024
After a challenging period during the COVID-19 pandemic, the UK cinema industry has experienced a strong resurgence in 2024, with attendance figures reaching approximately 85% of pre-pandemic levels.
The comeback can be attributed to several factors. A robust box office, driven by popular film releases, has played a significant role. DreamWorks’ How to Train Your Dragon remake, the horror thriller 28 Years Later, and Apple’s F1 racing film, among others, have drawn large audiences. Niche and mature-audience targeted films like The Salt Path have also performed well, partly due to cinema’s rising appeal as an advertising platform.
Younger audiences have been instrumental in the attendance growth. Post-pandemic, younger age groups (14-24 years) have been the most frequent cinema-goers. Although attendance is still catching up to pre-pandemic averages, all age groups have seen increased visits since the Covid-19 low point in 2021.
The success of UK cinemas is also evident in the financial realm. Box office revenue surpassed £530 million in the first half of 2024, which is 18 percent ahead of 2023 and marks the strongest six-month period for cinemas since the pandemic began. UK cinemas are projected to exceed £1.1 billion in box office revenues for 2024.
Cineworld's post-bankruptcy revival is noteworthy, with a 22% increase in average revenue per customer due to emphasis on premium formats. Independent cinemas have also reported attendance growth of 18% year-over-year, outpacing major chains in percentage terms.
The regulatory context cannot be ignored, with the EU’s Audiovisual Media Services Directive requiring streaming platforms to ensure that at least 30% of their catalogue consists of European works. This directive may have indirectly contributed to the increased interest in cinema-going, as viewers seek a diverse range of content.
In the streaming arena, Warner Bros. Discovery reported that films receiving theatrical releases before streaming generated 27% higher viewer engagement and 41% lower churn risk when they reached HBO Max/Max compared to films released directly to the platform. This suggests that the traditional theatrical release model may still hold value for streaming services.
However, the UK streaming industry faces its own challenges. Churn rates across UK streaming services averaged 5.8% in Q2 2024, up from 3.2% in 2021. Furthermore, the average lifetime value of UK streaming subscribers has decreased to just £87, creating dangerously thin margins.
In the face of these challenges, streaming services are adapting. Netflix spent £14.3 billion on content in 2023, a 242% increase from five years ago, while their UK subscriber base grew by only 18% during the same period. Disney, on the other hand, is focusing heavily on high-end drama and documentary production in the UK, having already commissioned 14 scripted series that began production in 2024 at upgraded facilities in Pinewood and Shepperton Studios.
The Odeon chain has also seen success through an extensive refurbishment program, converting 65% of their screens to luxurious recliner seating. This move seems to have resonated with audiences, as it offers a more comfortable and immersive cinema-going experience.
In conclusion, the UK cinema industry has shown remarkable resilience and adaptability in the face of the COVID-19 pandemic and the rise of streaming services. Despite some external challenges, the industry is experiencing growth, driven by a combination of strong film releases, a strategic increase in cinema advertising, easing of pandemic restrictions, and active engagement of younger audiences. The future of UK cinema looks promising, with both traditional and modern approaches finding their place in the ever-evolving entertainment landscape.
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- The box office, led by popular film releases such as DreamWorks’ How to Train Your Dragon remake, has played a significant role in the UK cinema industry's resurgence.
- Niche and mature-audience targeted films like The Salt Path have also performed well, partly due to cinema’s rising appeal as an advertising platform.
- Younger age groups (14-24 years) have been the most frequent cinema-goers, contributing to the attendance growth.
- The success of UK cinemas is reflected in the financial sector, with box office revenue surpassing £530 million in the first half of 2024.
- Cineworld's post-bankruptcy revival is notable, evidenced by a 22% increase in average revenue per customer due to emphasis on premium formats.
- Independent cinemas have seen an 18% year-over-year attendance growth, exceeding major chains in percentage terms.
- The EU’s Audiovisual Media Services Directive might have indirectly contributed to the increased interest in cinema-going, as viewers seek a diverse range of content.
- Warner Bros. Discovery reported that films receiving theatrical releases before streaming generated higher viewer engagement and lower churn risk.
- Churn rates across UK streaming services have averaged 5.8% in Q2 2024, creating thin margins for the industry.
- Netflix has increased their content budget by 242% from five years ago, while their UK subscriber base grew by only 18% during the same period.
- Disney is focusing on high-end drama and documentary production in the UK, commissioning 14 scripted series at upgraded facilities in Pinewood and Shepperton Studios.
- The Odeon chain has seen success through an extensive refurbishment program, converting 65% of their screens to luxurious recliner seating.
- In the sports sector, streaming services may embrace sports-betting, mixed-martial-arts, and tennis analysis to attract a wider audience.
- Real-estate data indicates that the home-and-garden industry might experience a boom, as consumers invest in smartphones, gadgets, and technology for their homes.
- The fashion-and-beauty industry is keen to tap into lifestyle trends, particularly in the areas of food-and-drink and personal-finance through strategic partnerships and collaborations.
