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Record Revenues in the US/Canadian Market

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Presentation on theme: "Record Revenues in the US/Canadian Market"— Presentation transcript:

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2 Record Revenues in the US/Canadian Market
Although 2018 international (excluding US/Canada) box office revenues decreased 1% from 2017, to $29.2 billion, US/Canada box office revenues were the largest ever, increasing 7%, to $11.9 billion, increasing global revenues 1%, to $41.1 billion. Regionally, the Asia-Pacific market increased 5%, to $16.7 billion, while revenues for the EMEA region (Europe, Middle East and Africa) decreased 3%, to $9.8 billion, and Latin America decreased substantially, or -22%, or a total of $2.7 billion. The US/Canada revenue record was primarily attributable to three films (all from Disney), each of which generated more than $600 million in ticket sales.

3 Theaters Welcome More Patrons
According to the National Association of Theatre Owners (NATO), 2018 US/Canada admissions totaled billion, a 5.3% increase over 2017’s billion. The average ticket price during 2018 was $9.11, compared to $8.97 for 2017. NATO also reported the largest number of indoor US cinema sites during 2018, or 5,482, since 2015; however, the number of drive-in theater sites continued to decline, from 349 during 2017 to 321 for 2018, for a grand total of 5,803 US cinema sites. The number of 3D screens increased in three global regions during 2018, or a 13% increase from While 3D screens in the Asia-Pacific region increased the most, or 21.2%, to 62,608, they decreased by 45, to 16,933, in the US/Canada region.

4 Who’s Filling the Seats?
Although an almost equal percentage of men and women attended 2018’s top-25 movies, or 51% and 49%, respectively, more men, unsurprisingly, attended Black Panther, 56%; Avengers: Infinity War, 60%; and Deadpool 2, 60%. In the US and Canada, 53% of the total population, 2 years of age or older, were occasional (less than once a month) moviegoers. Frequent (once a month or more) moviegoers were 12%; infrequent (once a year), 10%; and non-moviegoers, 25%. The largest age group of frequent moviegoers were 25–39, at 10.8%, a slight decline from 2017’s share of 11.1%. Both adults 18–24 and 60+ had the largest increases from 2017, or 4 percentage points each to 5.6% and 6.6%, respectively.

5 Who’s Filling the Seats, Part 2?
With more men than women attending movies during 2018, especially the top-grossing films, it’s not surprising men’s per capita attendance increased 3 points from 2017, to 4.0, while women increased 1 point, to 3.5. Moviegoers 12–17 and 18–24 had the largest per capita attendance during 2018, or 5.1 each, but those 40–49 had the largest increase, from 3.6 during 2017 to 4.3 for 2018. All four primary ethnic groups – Caucasian Americans, African Americans, Latinx Americans and Asian Americans – increased their 2018 per capita attendance; however, African Americans increased the most, or 3 points.

6 Increasing Attendance Generates More Cinema Ad Spending
According to MAGNA’s fall 2018 advertising forecast, cinema advertising revenues increased 12% during the first half of the year after a disappointing 2017, when revenues decreased 6%. BIA Advisory Services reported during February that 50.9% of entertainment industry advertisers, which include move theaters, would increase their local ad spending during 2019, the most of 6 advertiser sectors measured. Based on 250 million registered users, Viant revealed the brand preferences of frequent moviegoers, with 38% of those attracted to action/adventure movies more likely to drink Coke Zero and comedy movie fans preferring economical cars.

7 Movie Fans Are Also Streaming Content Fans
According to EY’s 2018 survey of 2,500 respondents, frequent moviegoers were likely to be frequent viewers of streaming content (having seen at least one movie in a theater and streamed at least one hour of online content per week during the past year). Respondents who watched 9 or more movies in a theater averaged 11 hours of streaming content per week versus those who watched only 1 or 2 movies viewed an average of 7 hours of streaming content per week. Among non-moviegoers during the past 12 months, 49% didn’t view any streaming content while 20% of non-moviegoers streamed 1 to 3 hours; 14%, 4 to 7 hours; 9%, 8 to 14 hours; and 9%, 15 or more hours.

8 Advertising Strategies
Discuss with your promotions and/or news director the possibility of a costume and/or Halloween shop providing cosplayers dressed for a major 2019 movie release to appear during any of your station’s live, local news programs. Consider a joint promotions of a local car dealer and movie theater, with a high-end car or SUV on display in front of the theater with a group of cosplayers dressed to promote both advertisers. Theaters might want to schedule special daytime showings for adults 65+ only at a special package price that includes tickets, refreshments, etc.

9 New Media Strategies Suggest to the appropriate advertisers that they use social media and/or a crowdsourcing site to generate donations to provide tickets to a major movie release for underprivileged children or those living in an orphanage. The cosplay idea could become a social media promotion, with a retailer asking people to dress themselves for a particular movie, and then post photos and/or videos. Ask everyone to vote for the best and reward the winner with tickets to the movie, a limousine, etc. Local, independent and/or art house theaters can use social media to share rarely known facts about legendary movie stars and/or international actors.

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