Cinemas in Australia - Industry Market Research Report

Curtains: the Forced Closure of Cinemas During the Covid-19 Pandemic Has Left Operators Reeling

Cinema operators have faced significant challenges in recent years. Intensifying competition from other sources of entertainment, such as SVOD services, has negatively affected demand. Volatile economic conditions have also made it difficult for cinema operators to boost patronage and average spend. In response, cinemas have tried to differentiate the cinema experience from other forms of entertainment. Operators have upgraded projection systems to the latest technology and renovated their cinemas to include more premium offerings, such as recliner seats and gourmet food and beverage options. However, public health measures implemented in response to the pandemic forced cinemas to close temporarily or operate at a reduced capacity. Consequently, cinemas' revenue is expected to decline at an annualised 7.1% over the five years through 2022-23, to $1.4 billion. This includes a forecast rise of 22.2% in the current year, largely due to the easing of COVID-19 related restrictions and global film release schedules returning to normal. However, rising cost of living pressures are set to slow the recovery. The Cinemas industry includes companies that provide screenings of commercial motion pictures to the public. The industry includes independent and chain operators, with establishments ranging in size from single-screen theatres to multi-screen multiplexes. The industry also includes film festival operators. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.