Record Revenues in US/Canadian Market - 2018 Box Office Report

2. Record Revenues in the US/Canadian Market • Although 2018 international (excluding US/Canada) box office revenues decreased 1% from 2017, to $29.2 billion, US/Canada box office revenues were the largest ever, increasing 7%, to $11.9 billion, increasing global revenues 1%, to $41.1 billion. • Regionally, the Asia-Pacific market increased 5%, to $16.7 billion, while revenues for the EMEA region (Europe, Middle East and Africa) decreased 3%, to $9.8 billion, and Latin America decreased substantially, or -22%, or a total of $2.7 billion. • The US/Canada revenue record was primarily attributable to three films (all from Disney), each of which generated more than $600 million in ticket sales.

3. Theaters Welcome More Patrons • According to the National Association of Theatre Owners (NATO), 2018 US/Canada admissions totaled 1.301 billion, a 5.3% increase over 2017’s 1.236 billion. The average ticket price during 2018 was $9.11, compared to $8.97 for 2017. • NATO also reported the largest number of indoor US cinema sites during 2018, or 5,482, since 2015; however, the number of drive-in theater sites continued to decline, from 349 during 2017 to 321 for 2018, for a grand total of 5,803 US cinema sites. • The number of 3D screens increased in three global regions during 2018, or a 13% increase from 2017. While 3D screens in the Asia-Pacific region increased the most, or 21.2%, to 62,608, they decreased by 45, to 16,933, in the US/Canada region.

4. Who’s Filling the Seats? • Although an almost equal percentage of men and women attended 2018’s top-25 movies, or 51% and 49%, respectively, more men, unsurprisingly, attended Black Panther, 56%; Avengers: Infinity War, 60%; and Deadpool 2, 60%. • In the US and Canada, 53% of the total population, 2 years of age or older, were occasional (less than once a month) moviegoers. Frequent (once a month or more) moviegoers were 12%; infrequent (once a year), 10%; and non-moviegoers, 25%. • The largest age group of frequent moviegoers were 25–39, at 10.8%, a slight decline from 2017’s share of 11.1%. Both adults 18–24 and 60+ had the largest increases from 2017, or 4 percentage points each to 5.6% and 6.6%, respectively.

5. Who’s Filling the Seats, Part 2? • With more men than women attending movies during 2018, especially the top-grossing films, it’s not surprising men’s per capita attendance increased 3 points from 2017, to 4.0, while women increased 1 point, to 3.5. • Moviegoers 12–17 and 18–24 had the largest per capita attendance during 2018, or 5.1 each, but those 40–49 had the largest increase, from 3.6 during 2017 to 4.3 for 2018. • All four primary ethnic groups – Caucasian Americans, African Americans, Latinx Americans and Asian Americans – increased their 2018 per capita attendance; however, African Americans increased the most, or 3 points.

6. Increasing Attendance Generates More Cinema Ad Spending • According to MAGNA’s fall 2018 advertising forecast, cinema advertising revenues increased 12% during the first half of the year after a disappointing 2017, when revenues decreased 6%. • BIA Advisory Services reported during February 2019 that 50.9% of entertainment industry advertisers, which include move theaters, would increase their local ad spending during 2019, the most of 6 advertiser sectors measured. • Based on 250 million registered users, Viant revealed the brand preferences of frequent moviegoers, with 38% of those attracted to action/adventure movies more likely to drink Coke Zero and comedy movie fans preferring economical cars.

7. Movie Fans Are Also Streaming Content Fans • According to EY’s 2018 survey of 2,500 respondents, frequent moviegoers were likely to be frequent viewers of streaming content (having seen at least one movie in a theater and streamed at least one hour of online content per week during the past year). • Respondents who watched 9 or more movies in a theater averaged 11 hours of streaming content per week versus those who watched only 1 or 2 movies viewed an average of 7 hours of streaming content per week. • Among non-moviegoers during the past 12 months, 49% didn’t view any streaming content while 20% of non-moviegoers streamed 1 to 3 hours; 14%, 4 to 7 hours; 9%, 8 to 14 hours; and 9%, 15 or more hours.

8. Advertising Strategies • Discuss with your promotions and/or news director the possibility of a costume and/or Halloween shop providing cosplayers dressed for a major 2019 movie release to appear during any of your station’s live, local news programs. • Consider a joint promotions of a local car dealer and movie theater, with a high-end car or SUV on display in front of the theater with a group of cosplayers dressed to promote both advertisers. • Theaters might want to schedule special daytime showings for adults 65+ only at a special package price that includes tickets, refreshments, etc.

9. New Media Strategies • Suggest to the appropriate advertisers that they use social media and/or a crowdsourcing site to generate donations to provide tickets to a major movie release for underprivileged children or those living in an orphanage. • The cosplay idea could become a social media promotion, with a retailer asking people to dress themselves for a particular movie, and then post photos and/or videos. Ask everyone to vote for the best and reward the winner with tickets to the movie, a limousine, etc. • Local, independent and/or art house theaters can use social media to share rarely known facts about legendary movie stars and/or international actors.