Industry Analysis & Industry Trends
Cinemas have greatly benefitted from the surge in popularity of 3-D films since 2009. Cinemas that show 3-D films have been able to charge higher viewing prices and receive additional income from selling or renting 3-D glasses. This has contributed to the industry defying the economic slowdown in the past few years. Cinema attendance numbers have generally increased in the past five years, but at a lower rate than industry revenue. Following steady growth in cinema attendance from 2007 to 2009, visits declined by 2.5% in 2010-11 with further falls of 0.5% anticipated in 2011-12. These declines are due to a lag effect from the recession, higher prices and increased substitute entertainment products... purchase to read more
Industry Report - Industry Investment Chapter
This industry has a high capital intensity level due to the significant costs associated with building and fitting-out a new cinema, and refurbishing or upgrading an existing venue. It is also costly to purchase or lease film projection equipment and lighting, heating and cooling systems. These high capital costs are reflected in the industry's high depreciation level, which is forecast to account for 7.4% of industry revenue in 2011-12.
Cinemas also usually require a relatively large number of workers to carry out a wide range of activities. These staff include ticket-sellers, ushers, movie projectionists, food and beverage servers, cleaners, managers and office administrators... purchase to read more