The cinema market - France (2023)

1.2 A heavily affected but fast-growing global market

The global cinema market is still in a state of flux, having experienced a historic drop in **** due to the health crisis. It fell from $**.* billion in ****, a record, to $**.* billion in **** (***) before reaching $**.* billion in ****.

evolution of global cinema market size World, **** - ****, in $ billions Source: ****

The global box office rebounded in **** with total receipts of $**.* billion, up **% on ****, according to Gower Street Analytics and Comscore. Despite this improvement, figures remain **% below the ****-**** average, due to the impacts of the health crisis . However, Gower Street Analytics forecasts a continuation of this recovery in ****, with revenues estimated at $** billion, although still below the record $**.* billion achieved in ****[***].

The Asia-Pacific region accounts for the largest market share at **%, ahead of North America (***).

Worldwide box office market share World, ****, in Source: ****

The Covid-** pandemic has significantly impacted the cinema market worldwide. In China, the box office has seen a **% decline in ****, achieving only half the average revenue of the ****-**** period. It is expected to reach $*.* billion in revenues in ****[***]. As a result, North America has regained its position as the world's leading market, lost in **** and ****. The North American market has grown by **% in **** compared with ****, mainly thanks to the success ...

1.3 France, Europe's leading market

After two years marked by a sharp drop in revenues, these finally topped the billion euro mark in ****, but have still not exceeded **** figures.

Box-office receipts for cinemas in France France, **** - ****, in current €M Source: ****

The decline observed in **** is mainly due to the health restrictions of the first quarter of ****, which required a full vaccination pass, as well as to a significantly lower supply of American films than before the health crisis. However, France is among the countries experiencing the best recovery. For example, at the end of November ****, Italy, Spain and Germany recorded respective attendance declines of **.*%, **.*% and **.*% compared with **** to **** rates.

France leads Europe in terms of ticket sales, with *** million admissions in ****. Next come the UK with ***.* million, Germany with ** million, Spain with **.* million and Italy with **.* million.

Ranking of European cinema-going countries Europe, ****, in millions of tickets sold Source: ****

Current cinema attendance is still down, however, with a **.*% drop compared to levels recorded between **** and ****, before the Covid-** pandemic[***].

1.4 Theatrical market hit by COVID-19 crisis

Between temporary cinema closures, reduced capacity and the implementation of strict sanitary protocols, French cinemas had a difficult year in ****. Indeed, the Covid-** crisis left its mark on ****, particularly as far as the cinema market was concerned: a total of *** days of closures were recorded throughout the year.

As can be seen from the graph below, attendance at French cinemas fell by **.*% to just **.* million admissions in ****, compared with over *** million admissions in ****. Attendance subsequently increased, but failed to catch up with the **** figures.

French cinema attendance France, **** - ****, in millions of units Source: ****

In addition, the COVID-** crisis has not only led to a drop in cinema attendance, but has also had a negative impact on the production of cinematographic works in France. Dozens of releases have been postponed, including long-awaited French feature films such as OSS ***, Les Tuches * and Kaamelott.

2.1 Cinema attendance still reeling from the health crisis

A large part of producers' income depends on revenues from films shown in cinemas (***), so cinema attendance is a major determinant of producers' business.

Attendance at French cinemas fell by **.*% in ****, to just **.* million admissions, compared with over *** million admissions in ****. The year **** was also marked by very low attendance, but **** recorded *** million admissions, an encouraging figure for the sector.

French cinema attendance France, **** - ****, in millions of units Source: ****

The COVID-** crisis has not only led to a drop in attendance, but has also had a negative impact on the production of cinematographic works in France. The number of screenings on offer has also fallen sharply in **** and ****, due to successive confinements and cinema closures.

Number of screenings offered in cinemas France, **** - ****, in millions of units Source: ****

The number of screenings in cinemas fell by **.*% between **** and ****, from around *.* million to *.* million. This number remained relatively low in ****, before reaching *.* million in ****, recording a **.*% increase in one year.

The sector has therefore not quite recovered from the health crisis as far as cinemas are concerned, but the figures for **** are encouraging, and we can imagine that the figures for **** will reach, if not exceed, those for ****. However, the wave ...

2.2 A mostly occasional and increasingly numerous audience

The cinema-going population is defined as all individuals aged three and over who went to the cinema at least once during the year. Regular movie-goers are defined as those who go at least once a week, regular movie-goers as those who go at least once a month (***).

Structure of cinema-going public France, ****, in Source: ****

Occasional moviegoers account for the largest share of admissions, at **.*%.

Structure of cinema admissions France, ****, in Source: ****

On average, each moviegoer visited a cinema *.* times in ****.

Change in cinema-going population in France France, **** - **** Source: ****

As we can see from the graph below, almost **.*% of the French population, or nearly **.* million people, went to the cinema at least once in ****. As a result, the penetration rate in France is on the rise, having fallen to **.*% in ****. However, it has not yet reached the values achieved by Covid, which stagnated at between **% and **%.

2.3 A predominantly older, female and inactive film-going population

Demographically speaking, seniors (***) still account for the majority of cinema-goers, with **.*% of admissions.

French cinema attendance by age group France, ****, in Source: ****

However, if we compare these figures with the shares of these age groups in the French population, we see that * - ** year-olds and ** - ** year-olds are over-represented in cinemas(***).

Share of age groups in the French population France, ****, in Source: ****

The majority of cinema-goers are female, with **.*% women, slightly over-represented since they make up only **.*% of the French population. The majority of spectators are inactive, with **% pupils and students, and **% retired.

Cinema audiences by socio-professional category France, ****, in Source: ****

2.4 French films steal the show from American films

In France, the majority of films shown in cinemas are French or American, and have been for a long time. American films are generally more widely distributed than French ones, but this is not always the case. For example, in **** and ****, French films were shown more than American films.

Films shown in cinemas, by nationality France, **** - ****, in % Source: ****

In ****, French films maintained a high market share of **.*%, up slightly on **** (***), or **.* million admissions, down *.*% on the ****-**** average. in ****, the supply of American films was relatively low, with just ** releases, compared with an average of *** films per year between **** and ****.

In Europe, France is the second country with the most domestic films, after Turkey.

Ranking of European countries in terms of market share for national films Europe, ****, in Source: UNIC * market share in terms of ticket sales

French films distributed abroad are another key factor in producers' business. There are also films co-produced with foreign producers.

Attendance is fairly irregular from year to year, with **** and **** rather disappointing. Attendance plummeted in **** following the health crisis, before gradually rising again to reach **.* million admissions in ****.

international attendance figures for French films World, **** - ****, in millions of admissions Source: ****

3.1 Market structure diagram

Source: ****

3.2 More and more screens in France, but a relatively constant number of cinemas

The number of active screens in France has risen steadily in recent years. Indeed, as we can see from the following graph, the number of screens rose from *,*** in **** to *,*** in ****, an increase of **%. The increase slowed in **** due to the health crisis, but did not stop there (***). The increase then accelerated again to *,*** in ****.

Number of movie theaters in France France, **** - ****, number of active screens Source: ****

The rise in the number of screens can be explained in part by the rapid expansion of multiplexes - cinemas with at least five active screens - across the country.

On the other hand, the number of cinemas has remained relatively stable between **** and ****, despite increased competition from streaming platforms. However, as we can see below, there is a real transformation in the sector's economic fabric: gradually, the share of multiplexes, i.e. cinemas offering at least eight screens, is steadily increasing.

growth in the number of cinemas France, **** - ****, in number of active establishments Source: ****

By ****, the number of active establishments had risen to *,***, an increase of ** on **** and ** on ****. The year saw the opening or re-opening of ** cinemas, while six closed, either temporarily or permanently. Of these ** cinemas, ** had closed by ...

3.3 The decline of single-screen cinemas and the breakthrough of multiplexes

Small cinemas are still in the majority in France, even if the trend is downward. As can be seen from the graphs below, single-screen cinemas will still account for **.*% of the total number of screens in ****. However, the share of establishments with fewer than * screens is tending to decline inexorably, to the benefit of multiplexes, which accounted for *.*% of the total in ****, compared with *.*% in ****.

Breakdown of cinema establishments in France, by category France, **** - ****, share in % of number of establishments Source: ****

Between **** and ****, the number of active cinema establishments remained relatively stable, with a slight increase of *.*%. However, this trend has not been uniform across cinema types. There was a decline in the number of single-screen cinemas (***). On the other hand, the number of establishments with * or more screens rose significantly over the period, with a **.*% increase for cinemas with * or * screens, and a **.*% increase for multiplexes. The transformation of the sector towards more multiplexes can be explained in particular by their greater capacity. In fact, their larger size enables them to attract larger audiences and thus be more profitable.

Looking at cinema admissions for these establishments, we can see that multiplexes, i.e. establishments with at least eight screens, ...

3.4 Public funding

The CNC is a key player in the French film and audiovisual landscape, and is also involved in financing these sectors through grants. In ****, the CNC disbursed ***.* million euros in support. The breakdown by sector was as follows.

Breakdown of CNC support by sector France, ****, in Source: ****

Cinema therefore benefited most from this support in ****, with **.*% of the total, corresponding to *** million euros.

4.1 The rise of mutliplexes in France

According to the CNC definition, a multiplex must have at least eight screens. Today, multiplexes account for almost **% of the total number of cinemas. As shown in the graph below, the number of multiplexes in France has risen from *** in **** to *** in **** (***).

Number of multiplexes in France France, **** - ****, in number of establishments Source: ****

The concentration of activity around multiplexes is also explained by the strategy of conquering suburban and rural areas, which is conducive to the establishment of structures based on a volume business model and sales of services and complementary products (***). Multiplex structures are designed to generate significant economies of scale, thus generating additional revenues.

The rise of multiplexes in France bears witness to the transition from regional single-screen establishments to multiplexes of critical size. For a long time, government subsidies and grants, paid in the name of French cultural exceptionalism, helped maintain a network of low-budget establishments in the most remote areas. The trend towards a reduction in state subsidies is transforming the economic fabric of the sector, reinforcing the rise of multiplexes.

4.2 Steadily rising prices

Changes in average ticket prices contribute to fluctuations in box office receipts. Prices vary according to the category of establishment (***), as well as according to programming and broadcasting mode. Generally speaking, the average price of a cinema ticket has been rising for many years.

average box office per cinema admission France, **** - ****, in € Source: ****

Over the past few years, average cinema admission prices have risen by **%. However, in order to mitigate this rise in prices and limit its impact on demand, most cinemas have implemented a dynamic pricing policy. Indeed, full price is no longer considered the benchmark, and a multitude of formulas are offered: student rates, large family rates, senior rates, loyalty offers, etc.by way of example, here are the rates offered by the Gaumont Champs-Élysées cinema:

Source: ****

4.3 Innovation at the heart of cinema offerings

To face up to the new competition from streaming platforms and on-demand cinema offerings, cinemas are having to renew their offer. As a result, cinemas are modernizing with the aim of renewing the customer and movie-goer experience, integrating *D, for example. *D technology has been widely used in cinemas since the early ****s. The film Avatar wasthe first to popularize this broadcasting technique.

establishments equipped for *D projection and share of the total France, **** - ****, in number of establishments and % Source: ****

The number of establishments offering *D screenings has been falling slightly since **** (***). In France, *** cinema establishments are equipped with at least one premium room, offering various advanced technologies to spectators, representing *.*% of active screens in ****, compared with *.*% in ****. Compared with ****, the number of establishments with at least one premium room has risen by **.*%, and the number of premium rooms by **.*%. By ****, in addition to *D, eight main technologies will be in use:

Source: ****

The *DX and ICE systems are the most commonly used, with ** and ** establishments equipped respectively.

Technologies used in premium cinemas and their share of the French market France, **** - ****, in number of cinemas and as a % of the French market Source: ****

Cinemas are also thinking in terms ...

4.4 Pathé Gaumont, France's largest cinema exhibitor

Pathé Gaumont! is the leading cinema operator in mainland France, with a total of ** locations across the country, followed by CGR with ** and UGC with **. They are followed by CGR, with ** locations, and UGC, with **. The exhibitors shown in the chart below are those with more than *% of box-office receipts in ****.

Leading cinema operators by number of establishments France, **** - ****, in number of establishments Source: ****

In ****, seven companies generating more than *% of box office receipts will operate *,*** screens, representing **.*% of all active screens.

Leading cinema operators by number of screens France, **** - ****, in number of screens Source: ****

Cinémas Pathé Gaumont lead the way with *** screens, or **.*% of the national total. CGR follows in second place with *** screens, or **.*% of the total, and UGC is the third operator with *** screens, or *.*% of screens in France. These companies account for **.*% of admissions, a figure that is at its lowest level since **** (***).

Leading cinema operators by number of admissions France, **** - ****, in millions Source: ****

5.1 The CNC's leading role in the industry's supervision

CNC's role in the industry :

The Centre National de la Cinématographie was created in ****. Its role is to manage the State's financial support for the film industry. Among the CNC's most important prerogatives are [***]:

support for film production and distribution; creation and modernization of movie the aters ; production of programs for all television networks.

The CNC implements a policy designed to encourage the promotion and distribution of works, as well as broad public access to cinemas, thanks to a system of specific aids for theatrical distribution, economic support for exhibition, and so on.

Exceptional measures following the Covid-** crisis:

The government's recovery plan provides for the allocation of *** million euros to the Centre national du cinéma et de l'image animée (***) to support the audiovisual and film industries. Of this sum, ** million euros will be used to offset the CNC's tax losses and maintain existing support for creation and distribution. the remaining *** million euros will finance new measures to support the entire production chain, including support for creators, production support, modernization of technical industries and international development. These measures have been defined in consultation with professional organizations. The recovery plan does not include the €** million state compensation for cinema ...

5.2 Regulations governing the activities of movie theaters: the Code de cinéma et de l'image animée (French Code of Cinema and Moving Images)

The CNC also establishes a legal framework for the activity of movie theaters. In addition, the French Code de cinéma et de l'image animée provides a precise regulatory framework for movie theaters. The following list of regulations is not intended to be exhaustive, as they cover a very broad spectrum of business activity in the sector:

Articles L***: creating the CNC and defining its scope of action; Article L***: concerns the introduction of a tax on cinema admissions. The tax is calculated by applying a rate of **.**% to the price of admissions to screenings organized by operators of cinematographic entertainment establishments. This rate is multiplied by *.* in the event of representation of works or cinematographic or audiovisual documents of a pornographic nature or inciting to violence included in the list mentioned in the fourth paragraph of article L. ***-*; Article L***-**: the introduction of a contribution payable by companies distributing cinematographic works. This contribution is set at *.**% of receipts, excluding value-added tax, from the commercial or non-commercial exploitation of cinematographic works for which they are responsible for distribution, subject to the application of article **** of the Civil Code relating to the reimbursement of expenses incurred by agents on ...

6. Positioning the players

• Pathé Gaumont
• CGR Cinemas
• UGC
• TF1 Groupe
• Netflix
• Canal Plus Groupe (MyCanal)
• France Télévision
• VideoFutur
• SFR (SFR Play)
• Cinéligue
• MK2
• Kinepolis
• Mégarama
• Cineville
• Dulac Cinemas
• Grand Ecran groupe
• Reynaud Groupe Cinéma
• Majestic Cinémas