The CineEurope conference starts here in Barcelona on Monday with distribution and exhibition expected to be in a good mood, coming from a number of mega-drivers in the first part of the year and entering a lucrative second half of the year. There is reason for back flaps and high-fiving, but there are also concerns that all sides should continue to work together for the continued good of the company.
The annual gathering of European theater owners and Hollywood studios takes place in its usual place for the first time since the beginning of the pandemic and comes as international ticket offices (excluding China) are about 166% higher than in 2021 on June 11 to 6 , 06 USD B, according to Gower Street Analytics. Also per. On June 11, the global ticketing office (including China) was estimated at $ 11.7 billion, which is 62% over last year’s same period and 37% behind the 2017-2019 average.
The first part of 2022 has seen such blowouts as Warner Bros. / DC’s BatmanDisney / Marvel’s Doctor Strange in the multiverse of madnessParamount / Skydance’s Top Gun: Maverick and Universal / Amblin Entertainment’s Jurassic World Dominion. Each of them has exceeded $ 600M worldwide, with Maverick and JWD still in the early stages. Light yearto be fair, had a bad start – let’s see how it plays out.
Although there is a clear demand, the industry cannot live off blockbusters alone. This is one of the most important issues that leaders are thinking about today, along with the relationship between exhibition and distribution and the increased range of options for premium formats.
Both exhibitions and distributions agree that medium-sized films and even larger films that are not based on existing IP must exist in the ecosystem in order for it to thrive.
Admittedly, it was already seen before the pandemic, but we hear that there is more concern about lower turnout for mid-level and original images, as some pockets of the audience are still reluctant to return (think older women). It is not durable, we are often told. If those movies stop being made, it becomes a downward cycle.
How to remedy this? In part, it is about maintaining the cozy relationship exhibition and distribution that has been built up during the pandemic. Once a little uncomfortable bedmates, cinema circles and studios have found a new way to collaborate in the last few years – by sharing ideas and data and working together to maximize the box office and get the market back on a healthy footing. Although experiments were experimented with windows that sometimes did not fit well with exhibitions, there is general agreement that films now need a decent theatrical display. There is hope that the spirit of cooperation will continue.
What’s more, even studios fight for each other when there’s a hit. A rising tide lifts all boats, as they say, and I consistently hear from executives that they get chuffed every time a movie excels in this uncertain time.
Increasing the frequency with which cinema-goers show up is also a key element. In part, it’s driven by content, which has been a challenge through all the stops and starts that the industry has faced in the pandemic years. And for the most part, it’s driven by the theatrical experience that gives people who may have lost the habit of going to the cinema the urge to return again and again – across all demos. Here there will be a discussion about innovative marketing and advertising campaigns and how the partners can work together.
And there are opportunities for exhibitors, distributors and technology companies to elevate the experience with PLFs, which have given a big boost to recent hits, and help highlight the need to see a film on the big screen, maximizing the potential for cinemas and for movies. And driving frequency of visits.
The European majors are experiencing growth across the board. Examples up to 11 June include the UK, which has risen 920% compared to 2021 and only 27% lower compared to the pre-pandemic three-year average. France reached $ 461 million. (+1014% in 2021 / -31% compared to the pre-pandemic three-year average), and Germany reached 309 million.
On the negative side, generally abroad and not limited to Europe, inflation has been a hindrance to marketing costs, while production costs have risen by around 20%. So far, Russia, which represents 3% -4% of international ticket offices (excluding China) in a normal year, is not part of the equation. There is nothing to do about that at the moment. China, for its part, has been mercury with release dates, but shows some decline with Jurassic World Dominion closes at $ 100 million. even today. Also on the upside, Korea is back after a difficult period and it is something to celebrate.
All in all, there is expected to be a sense of optimism here in Barcelona. The last half of the summer and the rest of the year are ready to be strong, while there are high expectations for 2023. As more than one leader was excited, “This company is here to stay.”