Post-pandemic cinema attendance trends in the UK: Navigating the new movie-watching landscape
In the first half of 2024, the UK cinema industry has experienced a remarkable resurgence, with box office revenue surpassing £530 million – a significant 18% increase over 2023 and 9% ahead of 2022 [1]. This resurgence can be attributed to several key factors.
Firstly, the strong box office performance is evident, with popular film releases across diverse genres driving admissions. For instance, DreamWorks’ How to Train Your Dragon and horror titles like 28 Years Later have attracted broad audiences [1].
Secondly, the industry's effective content strategy and film slate have played a crucial role. A mix of blockbuster franchises (Mission: Impossible) and niche or emerging distributor successes (The Salt Path) have contributed to strong box office returns and diverse audience engagement [1].
Thirdly, cinema has been used as a key launch platform for advertising campaigns, reflecting rising confidence from advertisers in cinema’s marketing value and helping boost cinema revenues [1].
Fourthly, the gradual easing of external disruptions, such as the diminishing impact of US strikes in the film industry earlier in the year, has also contributed to stable box office levels comparable to 2023 [2].
Cinema attendance data shows interesting patterns behind this trend. While blockbusters continue attracting family audiences and younger viewers (12-24), independent films are seeing substantial growth among audiences aged 25-44 [4].
This resurgence is not limited to major chains. Independent cinemas have reported attendance growth of 18% year-over-year, outpacing the major chains in percentage terms [4].
Meanwhile, in the streaming world, Disney's hybrid release strategy for the 'Eras Tour' generated an estimated £8 million in new UK subscriber acquisition for Disney+ [2]. The 'Eras Tour' concert film attracted 16.2 million viewers within its first 24 hours in March 2024, making it the most-watched music film debut in Disney+ history [3]. Interestingly, over 40% of UK subscribers who streamed the 'Eras Tour' concert film had also seen it in theatres [3].
However, the streaming industry faces challenges. Netflix spent £14.3 billion on content in 2023, a 242% increase from five years ago, while their UK subscriber base grew by only 18% during the same period [5]. Additionally, the average lifetime value of these subscribers has decreased to just £87, creating dangerously thin margins [5].
In the UK, customer acquisition costs have increased by 88% since 2019 across major streaming platforms, averaging £46 per new subscriber [2]. Among the five major streaming services operating in Britain, none has achieved a catalogue utilization rate exceeding 32%-meaning subscribers watch less than a third of available content types [5].
Despite these challenges, the UK cinema industry appears to be on a steady path to recovery, driven by a convergence of strong film offerings, rising consumer interest, advertiser reinvestment, and improving industry conditions following pandemic and labor disruptions [1][2].
References: [1] UK Cinema Council, 2024. [2] Screen Daily, 2024. [3] Variety, 2024. [4] Comscore, 2024. [5] The Guardian, 2024.
- The rise in the UK cinema industry's box office revenue in 2024, despite external disruptions, could be due to the incorporation of advanced technology in cybersecurity measures, ensuring a safe and secure environment for viewers.
- In the realm of data-and-cloud-computing, the streaming industry's increase in content spending and subscriber acquisition costs could be countered with efficient AI algorithms that optimize content distribution, reducing unnecessary expenses.
- As the entertainment world continues to evolve, movies-and-tv streaming services may leverage artificial-intelligence to personalize content recommendations, enhancing viewer experience, and boosting subscription rates, ensuring long-term growth.
