Report Overview

Cinema’s post-pandemic future

Admissions and box office revenues in 2020 will be the lowest in over three decades. The pandemic forced the closure of theatres, putting pressure on cinema to a degree unlike ever before

The reasonable success of the straight-to-TVOD releases under lockdown has some studios suggesting TVOD distribution will live alongside theatrical in the future. However, simultaneous releases are unacceptable for cinemas and TVOD’s sub-optimal financial reality means theatrical release will remain essential for most films

TVOD distribution will temporarily play an expanded role, while SVOD will pursue its climb up the distribution chain and big studios will assert their increased power to negotiate more favourable terms with cinema owners

Contents

Theatres at risk from diminished footfall and film delays

The flawed reality of simultaneous online distribution

New balance of powers

The funnel may shift, but cinema remains first

List of charts/tables

Figure 1: UK cinema admissions (m)

Figure 2: Typical movie distribution funnel

Figure 3: Disney’s revenues from Avengers: Infinity War ($m)

Figure 4: Approximate film production budget ($m)

Figure 5: Distributor market share as a percentage of UK BOR (%)