Export markets have dropped away at a time when production has hit a peak

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Box office is polarised between strong hits and weaker 'also-ran- movies

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We report on the Budapest conference at which delegates voted on the underlying priciples for their hopes and expectations

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World markets account for the lion's share of toptitle revenues—and rising

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Spending on promotion of French films-especially via the internet-is burgeoning

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Size of screen is expected to be a key factor in the rollout of digital cinema across Europe

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DVD dominates studio movie value but the margins on video-on-demand are greater

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Studio content is providing a solid foundation for expansion towards the 6,000 screens predicted by Screen Digest for 2009

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Local films accounted for a third of box office revenue worldwide last year

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Roll-out is accelerating rapidly in the US, thanks to AccessIT's early installations (with studio support), while Europe seems to be biding its time. The number of commercial d-cinema screens in the world grew by 253 per cent in a year, from 848 to 2,996 at end 2006. This number doubled between the end of the first half 2006 and the end of the year, from 1,474 d-screens to the eventual 2,996. The rate of change has largely been the product of an industrial scale roll-out in the US. AccessIT is driving this progress and has now exceeded 2,000 installations of its 4,000 initial target.

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Only the UK suffered a slight decline in revenue in 2006 as most territories made gains, with China as the fastest growing market

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A new record set last year for total takings in an opening weekend of theatrical release highlights atrend in which over 30 per cent of total revenues are achieved during the first weekend

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Television output is stable while feature-length animation struggles for distribution. Government the current state of health, despite some spectacular international successes.

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The young may still be the cinema's primary market but in France and the UK older people - and the better educated and more affluent - form a growing segment of cinema audiences.

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Major cinema markets around the world reported a drop at the box office in 2005. The slump has been linked to many factors, including a lack of overtly strong titles, both from Hollywood and indigenous film industries, generally slug...

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The rate of digital cinema deployments is accelerating fast, with over 600 installations in the first half of 2006, three-quarters of them in the US.

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China, Russia and Argentina lead world box office gains, while the UK is the only country in which revenue fell during the first six months of 2006

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Our Digital Cinema Conversion Suitability Index shows that a one-size-fits-all approach would not work in Europe - or maybe anywhere outside the US

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Global production total soars as local films gain market share. World film production hit 4,597 feature films in 2005 - a sharp 7.8 per cent increase on the previous year and the highest level recorded since 1990. The increase was led by European film production, particularly in Western Europe, where 1,052 feature films were produced, the highest total in that region since records began. And 44 per cent of West European films were co-productions.

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But 3D is playing a role as a catalyst for digital cinema deployment

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Original screenplays still dominate the business but the most consistently successful sources are comic book adaptations

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US marketing costs dwarf other markets, accounting for almost half of box office revenue.

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Local films gained market share as admissions mainly slipped below the past five-year average, leaving UK the second most successful local film industry

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Allowing relaxation of the screen quota

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Only a handful of countries bucked the trend of declining cinema admissions last year

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The time-lag in international film and DVD releases is narrowing. The analysis shows by just how much synchronised releases are becoming commonplace

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There has been a surge of interest by venture capital firms taking ownership of prime exhibition chains with a view to streamlining existing operations Europe, mirroring the situation in North America. Private equity firm Terra Firma Capital Partners marched into the European cinema sector in late 2004. The group acquired the European interests of UCI as well as the UK's leading cinema circuit Odeon

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Five of top ten exhibitors in Western Europe are located in the UK

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But the Japanese market is dominated by foreign blockbusters and the single top title took 9.5 per cent of total box office revenue in 2004

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Domestic productions have contributed to box office gains in emerging markets; Russia reported the greatest gain in local film success in 2004

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The Cinema Index is an at-a-glance way of comparing earnings with cinema prices. The lower the number in minutes, the less expensive a cinema ticket is realtive to earnings power.

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In 2004, a total of 12 foreign-language films made an entry into the top 100 foreign films of all time in the US—more than any other year since 1980. Of the top 100 foreign films, those released in 2004 also achieved the second highest annual revenue: $98.3m. The success was mainly due to Chinese martial arts movie Hero, the top foreign title of 2004, grossing a total $53.6m.

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The sequel has a long history in the cinema, somewhat maligned for much of it. For many years, a sequel was a way of minimising risks in making money, building on the name, recognition and fan-base of an earlier successful film. Over time, the sequel has evolved more into a film in its own right, building on an idea rather than exploiting it.

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Animated Movies: US and European Market Assessment

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Alternative Content: the New Cinema Profit Engine

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Digital Cinema: Audience & user preference study

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