Evolution of Movie Industry Amidst the COVID-19 Outbreak
Movie theaters faced challenges during the coronavirus outbreak leading to shifts in film releases from theaters to streaming services. Despite this, the popularity of moviegoing remains strong. Frequent moviegoers, primarily aged 25-39, continue to be a crucial demographic. The report also highlights changes in per-capita attendance among different ethnic groups in 2019.
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Darkened Screens As one of the primary global and US entertainment venues, movie theaters faded to black during the coronavirus outbreak, prompting many of the major studios/distributors to release new films initially in theaters and then on various major streaming services. Titles included Emma, The Hunt, The Invisible Man, Onward, Birds of Prey, Just Mercy and many others while other studios were delaying the launches of Mulan, Avengers/Black Widow and James Bond/No Time to Die, for example. Although the streaming fees for these movies are approximately $20, the cost is less than attending a theater. Some in the industry speculate this may become the new normal, since theater chains have very little negotiating leverage in the current climate.
2019 Revenues Second Best Ever Although total 2019 US/Canadian box office revenues of $11.4 billion decreased 4% from 2018 s record of $11.88 billion, 2019 generated the second-highest total ever. The average annual US ticket price increased slightly to $9.16 from 2018 s $9.11. The home/mobile sector of the entertainment market continued to increase its share, totaling $20.5 billion, or 56% of the entire US theatrical and home/mobile entertainment market, while the theater sector s share declined from 34.0% for 2018 to 31.1% for 2019. The total number of US cinema sites during 2019 increased by 66 (5,803 to 5,869); however, all of the increase was indoor theaters, or 5,548, while drive-in sites remained the same (321) as 2018, and is still the least number ever.
Popularity of Moviegoing Is Unchallenged According to the Motion Pictures Association s (MPA) 2019 Theme Report, 76% of all Americans and Canadians two years of age or older watched a movie at a theater during 2019, or a total of 268 million. Among those hundreds of millions flocking to theaters, MPA defined 54% as occasional, or visiting a theater less than once/month, with 11% frequent, or once a month or more ; 11% infrequent, or once in 12 months; and 24% as non-moviegoers. Although Caucasian Americans had the largest share of frequent moviegoers during 2019, or 22.0%, their share and African Americans , Asian Americans and other ethnicities all declined. Only Latinx American moviegoers share increased, to 10.4%.
Frequent Moviegoers Are the Target Audience Among frequent moviegoers, the largest age group continued to be 25 39, or 10.7 million, a slight decrease from 2018 s 10.8 million. They were also the largest percentage of moviegoers (24%) and over-indexed related to their total share of the population, or 21%. Total frequent moviegoers who are teens 12 17 and adults 18 24 were 5.3 million and 5.4 million, respectively, which were approximately half of adults 25 39. These younger audiences still had the largest per-capita attendance, or 4.9 and 4.7, respectively. Per-capita attendance for all ethnic groups declined: Caucasian Americans 3.3 to 3.2, African Americans 3.7 to 3.2, Asian Americans 4.5 to 4.1 and Other 4.0 to 3.4. Only Latinx Americans duplicated their 2018 level during 2019, or 4.7.
More Value for Every Ticket Dollar According to the MPA report, 1.24 billion Americans/Canadians visited theaters during 2019, compared to 422 million at theme parks and 129 million attending major league sports: MLB 68.5 million, NHL 22.2 million, NBA 21.9 million and NFL 16.7 million. During 2019, 750 million people attending AMC, Cinemark, Regal Entertainment and other theaters were exposed to cinema advertising during the pre-show period, which National CineMedia provides to 1,700 theaters and 21,000 screens. Cinema advertising reaches young adults who are more likely to be (cable TV) cord cutters and cord-nevers. According to National CineMedia, weekend audiences 18 49 generate an 8% equivalent Nielsen rating, which is more than NFL Sunday Night Football.
More Are Enjoying Movies Without the Theater Viewing and spending on movies extend beyond theaters to many home and mobile devices and channels. For example, 2019 physical media sales decreased 19% YOY to $4.7 billion while digital sales increased 18% YOY to $20.5 billion. Although 22% of US adults watched movies every day on pay TV and 20% via an online subscription, the largest shares were those who watched 2 3/month or less on physical disc, or 47%, and EST (Electronic Sell Through)/VOD (video-on-demand), or 35%. In the mobile channel, 9% of adults watched a full- length movie every day, compared to 14% watching full- length TV shows. Several times a week for a movie 12% and a TV show 16%; once a week, 7% and 6%; and 2 3/month or less, 29% and 24%, respectively.
Advertising Strategies The three major theater chains AMC, Regal and Cinemark were planning to reopen all their theaters starting during July. Special offers is a primary ad strategy to attract customers, such as $5 off concession sales or a discount from a nearby restaurant. Local theater chains and art-house theaters may want to promote a Feel Good Night (or weekend) of films with happy, uplifting and positive messages. Drive-in theaters have experienced increased traffic while indoor theaters were closed. Drive-ins may find it advantageous to initiate some branding campaigns/messages to continue to attract new patrons who may still feel safer in their cars.
New Media Strategies Drive-in theaters can take advantage of their increased traffic by asking new patrons to upload short videos to social media to share their first-time experiences at the theater. Offer a digital coupon to everyone who clicks through to watch the videos. The major chains will certainly use social media to provide detailed information about their reopening protocols to protect patrons and employees. Local theaters will want to do the same. Personalize those announcements with short videos hosted by employees. Email campaigns would certainly be appropriate for reopening theaters. Emails are linked to Website and/or social media content with a complete schedule and descriptions of the first and future movie screenings.
